Life serving in military is hard enough with the lengthy periods away from loved ones adding to the physical and emotional strain that is inevitable from military service. In light of this it can be very frustrating for members of the armed forces when confronted with the further problems encountered when trying to find a place to live. Up until military personnel intend to start a family, service accommodation will often be fine. However, once they do intend to start a family the situation often changes. When someone intends to start a family they often want to provide their family with not just simply a place to stay but a proper family home. Those serving in the UK armed forces often find that acquiring their first home can be difficult, such as the expense of property in the UK – however, the Long Service Advance Of Pay (“LSAP”) scheme run by the UK’s Ministry of Defence could be the answer.

What Is Long Service Advance of Pay?

To assist military personnel in buying their first property, the LSAP can provide assistance by providing an interest free loan. The amount available is currently a maximum of £8,500 depending on personal circumstances [ although it has been rumoured for years that this figure is likely to rise]. This amount can be a great help when trying to find enough for a deposit on a house. LSAP loans are then usually paid back over a period of ten years at an annual rate of 10%. This loan you could be used for a number of purposes from paying the deposit for a house to paying your lawyers’ legal fees.

Eligibility For Long Service Advance Of Pay

If you have at least four years of military service and have three months or more before discharge then you could be eligible for the LSAP. Other requirements in applying for the LSAP are that you are physically fit and are not under a discharge warning or have given notice for Premature Voluntary Release. Before applying for the LSAP loan you should also read the terms and conditions to may sure there are not any other eligibility requirements that apply to you. If you wish to find out the amount that you could possibly receive you should apply using JPA Form E024 at least six weeks before the intended purchase date of your chosen house.

Other Things That Should be Noted

If you are intending to apply for the LSAP loan then you should be aware that the LSAP loan can only be used on a home within the United Kingdom and that an organisation (such as a bank) is willing to advance a mortgage towards its purchase.

If you are considering on applying for the LSAP you should also be aware that HM Revenue and Customs classes the LSAP as a beneficial loan and therefore it will be liable to taxation if the amount lent exceeds £5,000 during the tax year.

Tim Bishop is senior partner of specialist military lawyers, Bonallack and Bishop. For more information about LSAP, call them on 01722 422300 or visit their specialist website at http://military-lawyer.co.uk.