Local Authority Purchase and Renovation Loan

What it is:

The Local Authority Purchase and Renovation Loan is a government-backed mortgage and loan for the purchase and renovation of derelict and non-habitable homes. The property must be eligible for the Vacant Property Refurbishment Grant, whether derelict, non-habitable or simply vacant.

If you wish to purchase and/or renovate a Vacant Property Refurbishment Grant eligible home but cannot get sufficient funding from commercial lenders you can apply to your local authority for a Local Authority Purchase and Renovation Loan. This is available nationwide.

Who it’s for:

This program primarily targets two groups:

First-Time Buyers: If you have not owned a property before and are seeking financial assistance to enter the property market.

Fresh Start Applicants: If you have owned a home in the past with someone and now are divorced or separated and no longer have any interest in the home. Or if you owned a home previously but no longer have a financial interest in this home because you became bankrupt.

How it works:

Eligibility: To qualify for the Local Authority Purchase and Renovation Loan, you must meet certain criteria. This includes being eligible for the Vacant Property Refurbishment Grant, being able to demonstrate project viability, that you will live in the home as your primary residence, and that you are within specified income brackets.

Loan Usage: The loan must be used for one of 3 project types:

Vacant property and minor works
Vacant property and major works
Derelict (meaning renovation on a property eligible for VPRG Derelict Top-Up)

Please note major renovations are defined in Building Regulations and refer to renovations where more than 25% of the building’s surface area (the building envelope) undergoes refurbishment or renovation. Minor works means works that are not major renovations.

Loan Amount: The amount that you can borrow is dependent on the type of renovation work required and the end of works value of your home. The estimated value of your home at the end of the renovation works cannot be above the current Local Authority Home Loan price limits.

Good to know: A key feature of the LAPR is that a cheaper bridging loan is available. This is equal to the amount of the Vacant Property Refurbishment Grant and repayable once the grant is paid out.

Government Backing: This mortgage is supported by the government, providing a level of security for both borrowers and lenders.

For more information, to use the loan calculator, and to download an application form, visit the Local Authority Purchase and Renovation Loan website.