LSAP

Discussion in 'Army Pay, Claims & JPA' started by mentalboab, Mar 17, 2009.

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  1. Hi,

    I am considering applying for LSAP but recently sold a house on (5 Months ago). The equity left from this house was used to pay off debt.

    I have two questions:

    Does this then make me un-elligable for the LSAP scheme?

    And if so, do I have to tell them about my previous property? i.e if I don't how would they know?

    Thanks in advance
    :?
     
  2. Read JSP 752, you can get it on the Army Net, at least your get the right answer.
     
  3. From JSP 752:

    02.0413. Amount of LSAP. Applicants who qualify in all respects will be
    permitted an interest free LSAP recoverable from pay and, if necessary, terminal benefits. The amount of the LSAP approved will be limited to the lowest of the following calculations:

    a. 182 days' gross basic pay including all forms of specialist pay (this
    excludes allowances); or

    b. £8,500; or

    c. In the case of a redundee, a sum not exceeding 90% of the terminal
    benefits due to the applicant at the earliest expected date of retirement or
    discharge; or

    d. The difference between the mortgage obtained and the purchase price of
    the new property, abated by any capital realised from the sale of the previous property. The purchase price of the new property may include associated legal, surveyors, land registration and estate agent's fees plus the cost of any repairs, which are an explicit condition of the mortgage obtained. In the case of flexible mortgages, the “mortgage obtained” will be regarded as the maximum sum that may be borrowed under the flexible mortgage arrangements; or

    e. In the case of an applicant who has owned property within the previous 12 months, the difference between the mortgage obtained and the purchase price of the new property will be abated by any capital realised from the sale of the previous property.

    PW
     
  4. Thanks PW I had read it, however does the above paragraph mean that because I have used the majority of capital realised from the sale of the previous property for debt abatement, that I am now not elligable for LSAP?

    Cheers

    BOAB
     
  5. Sorry but yes - any capital raised from that sale will be deducted from the 8500 to give you the maximum LSAP available. It the system's eyes it doesn't matter what you did with the cash!!

    PW