Changes in Qualification For LSAP

[mbga9pgf]

Was wondering if anyone had any details on when changes to the LSAP (Long Service Advance of Pay) were due to be coming in. Rumblings at work are that they are about to change - age apparently reduced to 24- and possibe increase in max ammount;but of course no -one exactly knows when. Does anyone know if LSAP can be applied post property purchase, or do you have to be in the process of applying to qualify. DCI's dont go into great detail.

Furthermore,

Any recent ramblings or changes about straight partners being eligible for families quaters? I am aware of changes coming into effect for homosexual couples but am not aware of similar changes for hetro couples. Bloody typical. Especially with OMQ's being so full and so many families quaters being empty. :mad: :mad: :mad:

Sometimes wonder what it is exactly we are fighting for in this crazy place we live in.:} :confused:

[gearontheglide]

I applied and got mine a few months ago. It is only available pre purchase and must be used for the purchase rather than for doing up the place once bought. Having applied for LSAP you then wait! Once your solicitor is close to completion, he/she will apply to PMA for the dosh. It goes straight to the solicitor i.e you do not see it. I used mine for the deposit. Word of caution though. If you can do with £5000 rather than the full £8500 do so. It will affect your tax because up to 5k it is in effect tax free. Above that the whole amount is treated as some sort of bonus and you will be taxed on the whole amount rather than the amount over 5k. That was the rule 5 months ago. Not sure if the amounts/regs are changing though.

[FFP]

Rules are changing . .. . . .

When JPA comes in (Ha !) it should put all three sevices in line with each other requirement wise, and the amount will rise to an equivalent of a years gross salary !!!

PSF don't have the full details. Can't see it changing till the end of the year at least.

Disclaimer: Aircrew info. Not a scribbly. Don't ask me for DCI references or anything like that. Ask PSF.

[mbga9pgf]

Cheers Chaps.

Unfortunate that I am having to buy in the next 3 months, because as I am 23, I am going to miss out :-(

Any futher word on when S"F"A is going to truly become families quaters and not married quaters (SMA)? Heard there are rumblings, there is a lot on this as far back as 2001 from the defence select comittee online, commenting on the whole situation is in desperate need of bringing into line with society. Never would have brought this up until i found out homosexual couples were going to become eligible. Somehow seems unfair...:yuk:

[JessTheDog]

Ahh, if the Secretary of State would listen to the Defence Committee, that would be a first!

I think the same-sex entitlement is based on the proposed(?) civil partnership, not available to males and females eligible to marry. This is discriminatory, as there are occasions - on religious grounds, in the Catholic Church - when marriage is not possible.

Also, what happens if a blue-suiter (or two blue-suiters) is in an unmarried relationship with offspring? I think a FQ is provided in that case.

[Unmissable]

Beware, LSAP is not as good as it first looks, especially for higher rate tax players. It is a taxable allowance and at a rate the government set. For example:

When borrowing £8500 interest free, you have to declare it on your tax form as a benefit which is then taxed. You benefit by not paying interest on the £8500. The Government decide the interest rate that would have applied. Curently approx 7% (this is nothing to do ith the interest rate you are paying on the rest of your mortgage.)
So assuming 7% is the rate the government decide, then when borrowing £8500 you should now pay tax on 7% of £8500, which is £595 per year if you are taxed at £40% (and I know a lot aren't) this means you have paid £238 to borrow the £8500. £238 is £2.8 % of £8500, so in effect you have not had an interest free loan, but a loan that has an equivalent interest of 2.8 %. (There are several mortgage offers which have you actually paying quite close to this rate)

Then you have to pay it back at 10% per year for 10 years (OK after a 2 year grace period).ie £71 per month. How much more mortgage could you have got for paying an extra £71 per month over 25 years? (Can't do this maths but a lot more that £8500)

For some, if you can't increase you mortgage, or you have the ability to pay back then it has some benefit. However if you just want to increase the amount you are borrowing, then I would seriously consider extending your mortgage over 25 years.

Oh, don't forget your solicitor will have to research this deal to include the MOD as having an 'interest' in your property (which may incur costs) and finally, when I tried to pay mine back early, it took 3 months for them to sort it out with all the hidden charges continuing.

All in all, more hassle than its worth!

[mbga9pgf]

Still though 5% (Current Rate) X 40% (assuming top rate) on a loan is the cheapest i know! and you cant get more than a 1 bedroom apartment for less than 130 grand in these parts! far cheaper than mortgage.