How much can I borrow?

The amount you can borrow under the Local uthority Purchase and Renovation loan will vary depending on:

• Household Borrowing capacity
• The maximum market values for your area
• The loan to value applicable to the category and condition of the home you intend to purchase
• The VPRG amount that you have been approved for
• The type of home you intend to purchase and overall project viability, i.e. vacant – minor works; vacant – major works; derelict

Household Borrowing capacity

Your household income will determine the maximum amount you can borrow and you must be able to demonstrate that you can make the repayments on a loan of this size. Your repayment capacity is capped at 35% of net disposable income.

Use the home loan calculator here to get an indication of how much you can borrow over the maximum term allowable and what the estimated repayments would be.

Maximum Market values for your area

The amount you can borrow under the Local Authority Purchase and Renovation Loan will depend on the level of renovation works required and the estimated end of works value of your home. The end of works value cannot exceed the maximum market values set out for the Local Authority Home Loan. These are:

• €360,000 in Dublin, Kildare or Wicklow, or
• €330,000 in Cork, Galway, Louth or Meath, or                                                    ,
• €300,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath or Wexford, or
• €275,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo or Tipperary.

Can I apply to more than one local authority?

In order to apply for a Local Authority Purchase and Renovation loan you must have identified a Vacant Property Refurbishment Grant eligible property. You must apply for the Local Authority Purchase and Renovation loan to the Local Authority where the property is located.

The VPRG amount that you have been approved for

The amount you can borrow as a bridging loan will be equal to the amount that you are approved for under the VPRG. The current limits are:

Vacant Property Refurbishment Grant

A grant of up to €50,000 is available. This is subject to upper limits for different types of work, having regard to a reasonable cost assessment by the local authority. The grant is inclusive of the VAT cost of the works.

Derelict Property Top-up Grant

If the refurbishment costs exceed the standard grant of up to €50,000, a top-up grant amount of up to €20,000 is available. To get this top-up grant, you must confirm that the property is derelict. This means that the property is structurally unsound and dangerous. The total grant available for a derelict property is therefore €70,000.

You must submit an independent report prepared by a qualified professional, along with the application confirming that the property is derelict.

Type of home you intend to purchase

The factors assessed in considering loan criteria such as maximum lending amounts and maximum loan to value ratios depends upon the type of home you purchase and the extent of renovation works you are planning.

For vacant dwellings that require minor works you can apply for a loan for up to 90% of the purchase price of the home and 90% of the renovation costs. The LAPR (once you have repaid the bridging loan) cannot be more than 90% of of the estimated end of works value.

For vacant dwellings that require major works  you can apply for a loan for up to 90% of the purchase price of the home and 90% of the renovation costs. The LAPR (once you have repaid the bridging loan) cannot be more than 85% of of the estimated end of works value.

Can I apply to more than one local authority?

In order to apply for a Local Authority Purchase and Renovation loan you must have identified a Vacant Property Refurbishment Grant eligible property. You must apply for the Local Authority Purchase and Renovation loan to the Local Authority where the property is located.