There has been a great deal of discussion in online forums for army and other armed forces personnel since the financial crash of 2008, about the merits or otherwise of the assisted home purchase Long Service Advance of Pay (LSAP) scheme run by the Ministry of Defence. Whilst some contributors bemoan the fact that the maximum amount of £8500 payable under the scheme is no longer sufficient for a deposit on even the most modest of properties in some parts of the country, the majority of entries in these forums are strongly supportive of the scheme.
It is true that the buying power of the LSAP has, with no recent uplift, reduced as house prices have inexorably increased, but it can still represent a substantial proportion of that first deposit for a home and the strong desire amongst most armed forces personnel for their own home after years of living in service accommodation burns as strongly as ever. Armed Forces personnel themselves widely recognise that it is incumbent on themselves to prepare for their eventual discharge by independently saving towards property ownership and that this act of saving provides incontestable evidence for the tax paying public – if it were needed – that the LSAP loan is both fully appreciated and wisely used by those who receive it.
We are members of Forces Law – a nationwide organisation of specialist military lawyers. As you probably expect, the largest source of this work comes from the Forces Law website. What’s interesting is that recently, the single largest number of enquiries have not been in relation to, say, military divorce, court martial or military medical compensation– but Long Service Advance of Pay – so clearly it’s still popular.
Thinking of LSAP – make sure you appoint solicitors who understand it
One warning however – only this week, we came across a client who transferred to us because their previous solicitor had messed up their house purchase using a Long Service Advance of Pay loan – he simply didn’t understand how it worked. So if you’re thinking of using LSAP to help fund the purchase of your home – get in touch with our specialist conveyancing team today on 01722 422300 or email firstname.lastname@example.org.