Local Authority Purchase and Renovation Loan

The Local Authority Purchase and Renovation Loan was approved by Government at the beginning of June. The loan, which is an expansion of the Local Authority Home Loan, will support both the purchase and renovation of homes which are eligible under the existing Vacant Property Refurbishment Grant.

The new Local Authority Purchase and Renovation Loan  and related documents are  available from:https://purchaseandrenovationloan.ie/applying/ 

What is the Local Authority Purchase and Renovation Loan?

The Local Authority Purchase and Renovation Loan (LAPR)  is a Government backed mortgage and loan for the purchase and renovation of derelict and non-habitable homes that qualify 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 LAPR.

The amount  that you can borrow is dependent on the type of renovation work required and the end of works value of your home.

To be eligible for a Local Authority Home Loan you must:

• Be a first time buyer or Fresh Start applicant.
• Be within the income limits for borrowers
• as a single applicant have an annual gross income of not more than      €70,000 (gross) 
• as joint applicants have an annual gross income of not more than €85,000  (gross)
• be eligible for the Vacant Property Refurbishment Grant.
• pass the standard creditworthiness assessment under the Local Authority Home Loan, which has requirements around income sustainability, employment and creditworthiness, as well as other personal eligibility requirements.
• Meet the assessment for borrower creditworthiness. Your repayment capacity will be capped at 35% of net disposable income.
• intend for the home to be your Principal Private Residence (i.e. it cannot be used for rental properties)
• be unable to source sufficient financing from commercial lenders to be eligible.
• be able to provide additional evidence if you were denied financing for project specific reasons.
• Be able to demonstrate project viability. You must be able to satisfactorily demonstrate, with professional analysis, as appropriate, that the property will comply with the applicable building regulations once the renovations are complete and the end value of the works are within the house price and loan to value limits. The amount of financing sought must match the scheme lending criteria for the type of renovation proposed.

What type of properties are covered?

• Homes that qualify for a Vacant Property Refurbishment Grant will be potentially eligible for the Local Authority Purchase and Renovation Loan.
• Property must be vacant for more than 2 years and meet all other Vacant  Property Refurbishment Grant criteria
• The house will be your private principal residence
• The condition of the home will still be a factor in the lending criteria and project assessment.
• The estimated value of your home at the end of the renovation works cannot be above the current LAHL price limits i.e. €275,000  for Tipperary.

There are also 3 project types for the loan:

• Vacant property and minor works: you can apply for 90% of the purchase price and renovation work for these projects.
• Vacant property and major works: you can apply for 85% of the purchase price of the home and 90% of the renovation costs for these projects
• Derelict: you must qualify for the derelict top-up of the Vacant Homes Refurbishment Grant for this type. You can apply for 80% of the purchase price of the home and 90% of the renovation costs

If you think you are eligible and can afford the repayments on the amount you need to borrow, you can complete a Local Authority Purchase and Renovation Loan application form.   

You must complete all sections of the application form and provide the supporting documents requested to your local authority. Once your application is received an appointment will be arranged to discuss your application. 

Eligibility is subject to submission of a complete Local Authority Home Loan application form and confirmation by your local authority.

Further information is available form Frequently Asked Questions | Local Authority Purchase and Renovation Loan    or alternatively contact the Housing Loans Department, Tipperary County Council on 0818 06 5000.