Information Centre Appendices

Appendix 1:
Supporting Documentation Required

The following list details the standard documentation required to complete a Local Authority Purchase and Renovation Loan application. Further documentation may be requested at the discretion of the Local Authority as part of the Local Authority Purchase and Renovation Loan application process at any time up to the drawdown of a loan.

Proof of Identity, address and Personal Public Service Number (PPSN)

All parties to LAHL applications will need to provide proof of name, their address and proof of PPSN or Tax Registration Number (TRN). Local Authorities are required to collect and verify your Personal Public Service Number (PPSN) or Tax Reference Number (TRN). This is required by the Central Bank of Ireland's Central Credit Register for Customer Identification.

Proof of Name

Original of:

• Current valid passport
• Current valid Irish, UK or European driving licence

Proof of Address

Original of:

• A utility bill (dated within the last 3 months)
• A bank/ building society/credit union statement issued in the last 6 months
• Determination of tax credits for the current year
• Original home/health or motor insurance documents (less than 12 months old)

Proof of PPSN

Original of:

• Correspondence from the Department of Social Protection or the Revenue Commissioners showing your PPSN
• Payslip, Employment Detail Summary (formerly P60)/P45, Statement of Liability (P21), Tax Assessment or Tax Credit Certificate
• Medical Card/Drug Payment Scheme (DPS) Card

Financial Documentation

Originals or where E-statements printed from online banking certified by regulated financial provider:

• 12 months most recent current account bank statements showing salary lodgements
• 12 months most recent savings account statements (including credit union)
• 12 months most recent loan account statements (including credit union)
• 6 months most recent credit card statements
• 3 months most recent secondary digital bank account statements (e.g. Revolut, N26, etc.)

Note: Self-employed applicants must submit business and personal account statements.

Renting

Local Authority/ Approved Housing Bodies (AHB) Tenants

Most recent 12 months evidence of rent payments. Tenants of a local authority or tenants under the RAS/HAP Scheme must submit a letter from the Rent Assessment Section confirming that their rent assessment is up to date and the account is clear for 6 months before applying for a LAHL.

Private Renting

If an applicant is in private rental, and there is no regular standing order or direct debit evidencing 12 months rent being paid out of their current account, a copy of the lease or rental agreement will be required.

Proof of Insufficient Loan Offers

Applicant must provide proof as set out below.

The value of the mortgage the applicant(s) were refused from two regulated financial providers must be equal to or less than the Local Authority Purchase and Renovation Loan amount sought. A regulated financial provider is a company, or mortgage broker on behalf of a mortgage lender, that is regulated by the Central Bank of Ireland and is permitted by the Central Bank of Ireland to provide monies to borrowers who wish to purchase a property. Acceptable evidence of this are:

• letters of insufficient mortgage offer from commercial lenders showing the amount requested or
•  letters stating that the application is outside the lending criteria of the commercial lender or
•  lender calculator output sheets showing insufficient borrowing capacity for the amount sought under the LAPR application or
•  letter of refusal for a loan stating that your application was outside the lending criteria of the commercial lender for project specific reasons.

Applicants are required to show the loan amount sought as part of the evidence of insufficient offers

Deposit

The minimum deposit can be made up of both personal savings and gifts/other unborrowed sources.

The personal savings must be no less than 3% of the total value of the purchase price and the renovation cost and must be evidenced at the time of making a Local Authority Purchase and Renovation Loan application.

A gift or money from other unborrowed sources can make up the balance of the deposit.

Evidence of Savings/Contribution Required

• The applicant(s) must provide certified or original bank or similar statements (post office, credit union, etc.) for 12 months immediately before making an application clearly showing a credible and consistent track record of savings. 
• The balance of the purchase price and applicant(s) financial contribution (from unborrowed sources) must be in place and evidenced in the applicant(s) bank account before loan drawdown.
• Developer discounts (purchase price) will be discounted

Income Confirmation

Employed (PAYE)

• 3 of the most recent payslips if paid monthly
• 6 of the most recent payslips if paid fortnightly
• 12 of the most recent payslips if paid weekly
• Waged/Salary payments must be visible on bank statements
• Date of leaving provided by employer on last payslip where required .LAPR loan salary certificate completed and stamped by the employer.
• Employment detail summary for the year ending December 31 prior to the  LAPR application
• PAYE/USC Statement of Liability (formerly P21) for the year ending December 31 prior to the LAPR application
• Proof of remote working from employer for purposes of establishing primary principal residence being a long distance from place of work

Employed (PAYE) Contract

• 3 of the most recent payslips if paid monthly 6 of the most recent payslips if paid fortnightly 12 of the most recent payslips if paid weekly
• Waged/Salary payments must be visible on bank statements Copy of contract where required
• P21 (tax balancing statement) for the year ending December 31 prior to the LAPR application
• Employment detail summary for the two years ending December 31 prior to the LAPR application (formerly P60)

Self Employed

• Minimum of two years certified accounts,
• Revenue Form 11 and
• an Accountant's or Auditor's Report (a qualified report is not acceptable) from a suitably qualified practitioner in the State (such as ACCA/FCA/CPA/IPA), confirming;
  • that all taxes, both personal and business, are up to date and in order and
  • that there are no arrangements in place with Revenue and
  • there are no outstanding tax liabilities.

Company Directors

• Letter from Accountant confirming that all personal and business taxes are up to date and in order.
• Where a director of a company is being paid via PAYE and has a shareholding equal to or greater than 25%, they must submit 2 years of company accounts in addition to the PAYE requirements.
• Where a director of a company is being paid via PAYE and has a shareholding of less than 25%, they must submit the PAYE requirements and a P21 for the year ending December 31 prior to their LAHL application.

If in receipt of Department of Social Protection benefits

Completed Appendix 2 from Local Authority Purchase and Renovation loan application form here.  Benefit payments received in the previous 12 months must be verified by the Department of Social Protection

Maintenance Payments

• Where the applicant is responsible for paying maintenance to a third party, and there is a maintenance order in place, a copy of the maintenance order will be required. The extent of this maintenance will be included as a fixed outgoing in the net income calculation.
• Where the applicant receives maintenance payments, which are the subject of a maintenance order, these payments must be evidenced (through bank statements or, if not, a copy of the maintenance order must be provided for at least the previous 12 months. Maintenance payments for children will not be included in net income calculations.

Appendix 2:
Reasons why an application may receive a Recommendation to Decline

Unsatisfactory Credit History

Details outlined in the applicant's Central Credit Register enquiry or registered judgement check indicates that the applicant(s) has a related issue.

Net Income Ratio Outside of Policy

The proposed monthly repayment as a percentage of the applicant's net monthly income exceeds the percentage as permitted in the Local Authority Home Loan Credit Policy.

Repayment Capacity Not Demonstrated/Evident

Applicant's capacity to service the proposed monthly loan and MPI repayments is not proven from documentation provided.

Unsatisfactory Savings Record / Source of Financial Contribution

Applicants have insufficient savings to cover the 3% cash deposit requirement, or their savings record is not credible and consistent.

Sufficiently Committed

Applicant's current financial commitments i.e. monthly loan repayments, credit card commitments, etc. do not leave sufficient funds to cover the proposed monthly loan and MPI repayments.

Income Sustainability Not Evident

Applicant's employment/income sustainability is not proven from documentation provided.

Unsatisfactory Financial Management

Applicant's financial information i.e. banks current account statements, credit union statements, rent statement or credit card statements indicate unsatisfactory operation of these accounts by way of arrears, unpaid standing orders/direct debits, bank referral fees and missed credit card payments.

Appendix 3:
Valuation Report

Download Indicative Valuation Report Template

Explanatory Notes For the Completion of the Valuation Report Form

All Valuation Reports should be completed in full with no part left blank and no question left unanswered. All Valuation Reports should be signed and dated with the Valuer's stamp imprinted thereon. No amended valuation amounts, either by overwriting or by use of correction fluid, will be accepted. All Valuation Reports should be accompanied by a coloured photograph giving clear and unobstructed views of the property over which it is proposed that security be taken (the "Property") with the address of the Property and the date duly imprinted thereon.

Location

State if the location is urban or rural. If rural give the distance from nearest town/village, civic amenities, transport links etc.

Give details of any other information which may affect future saleability

Are there any unusual aspects regarding the Property and its environment e.g. rights-of-way, bad approach to the Property, adverse development plans, noise, smells, pylons, TC masts, flooding, vandalism or any similar factors that would negatively impact on future saleability.

Is there any visual evidence of subsidence, settlement, land slip or ground heave?

If there is evidence of damage arising from the above or through shoddy workmanship details are to be given. Valuer should also take into consideration obvious defects in neighbouring properties.

Do you recommend a specialist report?

If the Valuer is unable to determine the cause of a defect which could have relevance to the future condition/resale of the Property then he should suggest a specialist report to comment upon the particular defect(s).

Such reports should only be requested where deemed necessary and should not become routine.

Are there any Rights of Way, easements or Way Leaves required/provided by the subject property?

If there is evidence of any of the above on or over the Property please give details and advise on the likely impact on resale.

If the Property forms part of a development, please advise

All parts of this question must be answered to enable the Local Authority to form an overall view of the status of the development.