Lsap & sfa

Discussion in 'Army Pay, Claims & JPA' started by Maroonmarvel, Jun 6, 2013.

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  1. Just wondered if anyone has had any problems applying for SFA when selling a house purchased using LSAP? I've been told that because my house ( which has been sold & is currently going through the solicitor stuff ) is closer than 50 miles to my parent unit then I'm not entitled to an SFA until LSAP confirm to the HASC that the outstanding balance has been paid in full! I can't do this until I've sold the house and received the profit made on it, which will mean my family & I will have no where to live once the house has sold? They said they can't help me during the interim period of selling and awaiting confirmation from LSAP, surely this can't be right. They won't even accept a letter from my solicitor confirming he will repay the balance upon exchange of contracts directly to LSAP. I find it difficult to believe that I'm the first person ever to find themselves in this position?
     
  2. Interesting. I was actually looking through the JSP myself today (looking for something else) and noted that the non entitlement to SSFA if you have an LSAP-funded property within 50 miles has had 'or SFA' added in red (indicating that that is an amendment in the most recent AL). Consequently, you could well be the first person to be affected. Highlight it to the chain of command and ask them to appeal on your behalf - it should be possible, and I suspect no-one had anticipated this happening (which is odd, because a posting is exactly the sort of thing that might trigger a house sale). They should also recommend a review of the policy to allow a 'grace' period of some sort for personnel with evidence that a sale is going through. I am sure people will worry about 'what if the sale falls through', but having an unworkable policy 'just in case' something happens is not the answer.

    It would actually be more understandable if LSAP was more than £7500 - it's not as if the MOD has really dug out blind and advanced you the best part of a semi-detached house. It barely covers legal and removal fees!

    I shall be paying off my LSAP before my next posting to London, because it also prevents you getting SSSA.
     
  3. As stated before, this is worth pursuing up the chain of command, or the Army Families Federation. A letter from a solicitor saying that that LSAP will be repaid upon completion should be taken seriously. If the LSAP is not repaid, APC will not be able to provide evidence that the loan has been repaid, and without that evidence the Land Registry cannot transfer the property from your name to the new owner's name. If a solicitor provides this letter at exchange of contracts, that still doesn't mean there will be enough time to sort out a new home. Moving house is stressful enough, without adding to it by not knowing if you can have anywhere to move to!

    I spent 20 years working for a bank on the legal side of mortgage securities, and since then I've worked for the Director of Naval Personnel, so I know policy can be changed if the situation dictates that it should.

    Please PM me if you don't get anywhere up the chain of command.
     
  4. Thanks for the advice. I've spoken to the HASC again today and been told different things by different people. One person would accept a solicitors letter and another wouldn't! Both checked with their superiors and said that LSAP needs to have been repaid in full before they will allocate SFA however nobody could confirm which Para they were quoting. All they said was it was from JSP 464. The banging the head against a brick wall will continue on Monday! I'm going to push it through the CofC now, because its getting ridiculous!
     
  5. JSP 464, Part 1, Chapter 3, paragraph 0317, as amended Jan 13 :

    0317 Long Service Advance of Pay (LSAP) claimants. If the Service person, or
    spouse/civil partner in the case of serving couples, purchases (or extends) a property
    using the Long Service Advance of Pay Scheme (LSAP), there isno entitlement to SFA or
    SLA at that place of duty, or any other place of duty, within 50 miles of the property, during
    the period that the LSAP loan is being repaid. Exceptions are detailed in JSP 752 Chapter
    2 Section 4 para 02.0446.

    The 'exceptions' reference appears to be wrong. Chap 2, Sect 4, Para 02.0446 no longer seems to exist. You can infer that it is referring to the piece in Chap2 Section 2 which details VCDS's 45 minute list, as I suspect that is the only reason they currently think justifies SFA whilst in receipt of LSAP. Either way, I think the recency of the amendment means that you very possibly are the first person, and hence this is the first time the flaws in the policy are being exposed. Don't get angry, I suspect no-one has done it on purpose, and a sensible compromise can be reached. You have spoken to a couple of 'computer says no' operatives, but that is perhaps understandable. The chain of command just need to make the right call to the OF5 at Gosport.