What is the Local Authority Purchase and Renovation Loan (LAPR)?

/in ,

At EcovisDCA, we understand that securing financing for property purchase and renovation can be a challenge, especially for derelict or non-habitable homes. If you’re looking to breathe new life into a vacant property but can’t get sufficient funding from commercial lenders, the Local Authority Purchase and Renovation Loan (LAPR) could be the solution you need.

 

What is the Local Authority Purchase and Renovation Loan?

The LAPR is a government-backed mortgage and loan specifically designed to assist with the purchase and renovation of derelict, non-habitable, or simply vacant homes that qualify for the Vacant Property Refurbishment Grant (VPRG). This initiative aims to address the housing crisis by transforming neglected properties into liveable homes.

 

Who Can Apply for LAPR?

If you plan to purchase and/or renovate a home eligible for the VPRG but face difficulties securing sufficient funds from commercial lenders, you can apply for the LAPR through your local authority. The amount you can borrow depends on the type of renovation required and the estimated value of your home post-renovation.

 

Types of Projects Covered:

The LAPR supports three types of renovation projects:

  1. Vacant Property and Minor Works: Renovations that don’t meet the criteria for major works.
  2. Vacant Property and Major Works: Major renovations as defined by Building Regulations, involving less than 25% of the building’s surface area.
  3. Derelict Property: Renovation of properties eligible for the VPRG Derelict Top-Up.

 

Key Features and Benefits of LAPR:

One of the standout features of the LAPR is the availability of a cheaper bridging loan, equal to the amount of the VPRG. This loan is repayable once the grant is paid out, offering several advantages:

  • Increased Borrowing Capacity: The bridging loan boosts your borrowing capacity, allowing you to fund renovations that might not be feasible with traditional bank loans.
  • Improved Project Viability: The loan’s repayment is based on the VPRG, meaning the LAPR considers the project cost net of the grant. This improves the viability of your renovation project.

 

Eligible Properties

To qualify for the LAPR, properties must meet the following criteria:

  • Vacancy Period: The property must have been vacant for more than two years.
  • VPRG Criteria: The property must meet all other criteria for the Vacant Property Refurbishment Grant.
  • Principal Residence: The renovated house must be your private principal residence.
  • Value Limits: The estimated value of your home post-renovation must not exceed local authority price limits, which are as follows:
    • €360,000 in Dublin, Kildare, or Wicklow
    • €330,000 in Cork, Galway, Louth, or Meath
    • €300,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath, or Wexford
    • €275,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo, or Tipperary

 

Why Choose LAPR?

By choosing the LAPR, you gain access to a supportive financial solution tailored to transforming vacant properties. It not only enhances your borrowing capacity but also ensures your project is financially viable, making it easier to turn a neglected house into a beautiful home.

 

Get Expert Advice

Navigating the intricacies of the LAPR can be complex. At EcovisDCA, our experienced advisors are here to guide you through every step of the process. Contact us today for personalized advice and support to make your renovation dreams a reality.

­
We hope that this information has been useful for you and as always, Please do not hesitate to contact us.