Local Authority Purchase and Renovation Loan Overview

This is a Government backed mortgage and loan provided to first time buyers and Fresh Start applicants through local authorities 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. 

A "Fresh Start" principle also applies to the Local Authority Purchase and Renovaiton  Loans. This means that applicants who are divorced, legally separated/separated or the relationship has ended and have no financial interest in the family home are eligible to apply under this scheme.

People who have undergone personal insolvency/bankruptcy proceedings will also be eligible to apply for the Local Authority Home Loans Scheme.

The credit policy complies with appropriate legislation including:

• Housing (Miscellaneous Provisions) Act 1992; Section 11 refers to Housing Loans by housing authorities,
• Housing (Miscellaneous Provisions) Act 2009, Section 5; refers to Credit Policy Guidelines 2021, which the Minister has the power to make under section 5 of the Act of 2009. The Credit Policy are the Guidelines, which have been made in respect of the Home Loans Scheme,
• Housing (Miscellaneous Provisions) Act 2009: Part 3: Incremental Purchase Arrangements and Part 4: Tenant Purchase of Apartments Scheme,
• Housing (Miscellaneous Provisions) Act 2014; Part 3 Purchase of Houses by Tenants,
• Affordable Housing Act 2021 (as amended): o the purchase of an open market dwelling under section 6 or 7 of the Act of 2021,
  • o Section 9.(5) ‘Notification of and applications for affordable dwelling purchase arrangements’ and
  • o Section 10. ‘Assessment of eligibility for affordable dwelling purchase arrangement’ with the exception of 10(6)
• Housing Loans Regulations 2021 (SI No. 701 of 2021),
• Housing Loans (Amendment) Regulations 2023 (SI No. 76 of 2023).
• Housing Loans (Amendment) Regulations 2024 [S.I. No 221 of 2024)
• Housing Purchase and Renovation Loans Regulations 2024 (S.I. 353 of 2024)

In order to apply for the Local Authority Purchase and Renovation Loan the application form must be completed in full and all relevant documents as detailed in the “Checklist for Applicants” must be provided. If you already have a Local Authority Home Loan approval in principle, this should also be provided.

Local Authority Purchase and Renovation Loan Credit Committee

Each Local Authority providing a Local Authority Purchase and Renovation Loan  will  be assessed by the Credit Committee for eligibility and creditworthiness. Once a decision has been made, you will receive a letter from your local authority. Approved applications will receive an Approval in Principle letter. If your application is declined, the reason(s) why will be included in your declined letter.

Appeals Process

Each Local Authority will have an Appeals Procedure in place to allow a dissatisfied/declined applicant(s) to appeal a loan application decision of the Credit Committee.

An Appeals Panel will consider appeals only where the applicant can prove their application adheres to the eligibility criteria of the Local Authority Purchase and Renovation Loan scheme.

• An appeal will be considered only on the reason(s) as stated in the Letter of Decline returned by the Local Authority.
• An appeal of the loan amount provisionally approved may be considered on foot of a review of the original Local Authority Purchase and Renovation Loan application and supporting documentation provided.
• The provision of additional information will not be grounds for an appeal of the original Local Authority Purchase and Renovation Loan application and decision. This constitutes a new application and will be treated as such.

• An appeal on the validity of an application, or the eligibility of an applicant, can be considered.

Complaints Process

If you (the applicant(s)) have exhausted the Appeals Process and remain unhappy with the local authority decision, you can make a formal complaint to the Local Authority Complaints Department.

If your complaint is not resolved satisfactorily, you can refer your complaint to the office of Ombudsman by:

• clicking on the "Make A Complaint" link at ombudsman.ie or
• writing to: Office of the Ombudsman, 6 Earlsfort Terrace, Dublin 2, D02 W773 or
• calling the Ombudsman on +353 1 639 5600 if you have any queries or if you need help making your complaint.

Purchase and Renovation Loan Home Loan Key Features

First Time Buyer Status

To qualify for the Local Authority Purchase and Renovation Loan, each applicant must be a First Time Buyer (applicants cannot have previously, either individually or jointly, purchased or built on their own behalf, a residential property either in Ireland or elsewhere or be otherwise eligible through the Fresh Start principle, or those who have inherited a residential property. A Local Property Tax and Central Credit Register check will be completed at application stage.

Exception to the First Time Buyer requirement for purchasers of eligible property: You are permitted to have purchased the property which is the subject of the Local Authority Purchase and Renovation Loan application and still be eligible for the loan, in which case you would be applying for a renovation-only Local Authority Purchase and Renovation Loan. This must be the first home that you have purchased, and you must have no outstanding mortgage on the property (as the Local Authority Purchase and Renovation Loan must have the first charge).

Joint Applicant Status

For the purposes of a joint application, all applicants must qualify as first-time buyers except where an applicant is eligible under the Fresh Start principle. Joint applicants can be two or more persons who apply for a housing loan together.

Applicant Eligibility

• Proof of insufficient mortgage offer, taking into account the level of savings available to the applicant, from two regulated financial providers in the Republic of Ireland must be submitted as part of the Local Authority Purchase and Renovation Loan application. The proof must be dated within 12 months of the application, and the amount must be equal to or less than the Local Authority Purchase and Renovation Loan amount sought. Examples of acceptable evidence are:

  • A letter from a commercial lender showing the amount you requested and were offered, and/or

  • A letter from a commercial lender stating that your application is outside their lending criteria, and/or

  • An online calculator output sheet from a commercial lender's website, showing insufficient borrowing capacity for the amount sought under the  Local Authority Purchase and Renovation Loan application

  • A 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.

• Applicants must be able to satisfactorily demonstrate, with professional analysis as appropriate, that they will be able to complete the renovations to the required standard and at a cost within scheme lending criteria. The amount of financing sought must match the scheme lending criteria for the type of renovation proposed.

• Each applicant must be aged between 18 years old and 70 years old
• Applicant(s) cannot have previously purchased a residential property in or outside Ireland, with the exception of applicant(s) qualifying under the Fresh Start Principle and applicants who own the property that is the subject of the Local Authority Purchase and Renovation Loan unencumbered.
• You must occupy the property as your normal place of residence.
• Applicant(s) must currently have a right to reside in the State
• Single applicants must not be earning greater than €80,000 annual gross income.
• The combined income of joint applicants must not be greater than €85,000 annual gross income.
• Where you are married, in a civil partnership, or in an intimate and committed relationship,  one person may not apply for a Local Authority Purchase and Renovation Loan on their own. They must make any such applications together with their spouse, civil partner or partner, as the case may be.
• You must have a credible savings record of a minimum of 12 months duration immediately prior to making an application.
• You must be of good credit standing with a satisfactory credit record.

To be eligible for a Local Authority Purchase and Renovation Loan you must be:

• in continuous employment for a minimum of two years as a single applicant
• in continuous employment for a minimum of two years as the primary earner in a joint application
• An exemption to the requirement for continuous employment can be given in situations where an applicant has verifiable income from an alternative source, such as a pension from a previous employment, for the last two years (or one year if they are secondary earners in a joint application). However, this income must be of a sufficiently long-term and guaranteed nature as to provide a sustainable basis for repaying a mortgage.
• Employment can be PAYE and/or self-employment.
  • Continuous employment does not need to be permanent, but continuous in nature. This means that an applicant may be in the same employment or in more than one employment over a two year period, however the break from employment cannot have been for more than four weeks.
  • For self-employed applicants, a minimum of two full year’s accounts for that employment must be provided.
  • Multiple casual employments will not be considered eligible.

Contract Employment Income

Contract income will be considered in repayment capacity provided:

• The applicant works in an industry where contract income is regarded as common, e.g. (retail, hospitality, education, health, and financial services)
• The applicant has been on contract in a similar industry for at least the last two years or, where recently commenced a contract, has been employed in a similar industry for a minimum of the previous two years before their application date.

Where an applicant(s) contract has three or fewer months to expiry and the contract provider has given written confirmation that the contract is to be renewed.

Further evidence of contract employment may be sought by the Local Authority.

Credit Check

• You must consent to the mandatory Central Credit Register (CCR) enquiry. This consent will be used to conduct a new enquiry as part of the credit assessment process.
• An application will be classified as incomplete if all parties to the Local Authority Purchase and Renovation Loan application have not signed the CCR consent. A judgement search is completed for all named applicant(s) on an application recommended for approval.

Mortgage Protection Insurance

Mortgage Protection Insurance (MPI) is a form of insurance which pays off the outstanding balance on you mortgage should you die before the mortgage is fully repaid.  The Local Authority MPI scheme is a group scheme.

All fixed and variable rates are exclusive of MPI which is a requirement of borrowing.  Eligible borrowers are required to partake in the local authority collective MPI scheme.  MPI is payable monthly, in addition to loan repayments.  MPI is payable on both the annuity loan and the interest only bridging loan of the Local authority Purchase and Renovation loan.

Full terms and conditions of the scheme are available from your local authority.

Fresh Start Principle

A Fresh Start principle applies for applications to the State’s affordable housing and loan schemes.

This means that the following categories of persons are eligible to apply for the Local Authority Purchase and Renovation Loan;

Applicant(s) who previously purchased or built a dwelling/dwellings, together with a spouse, a civil partner or a person with whom he or she was in an intimate and committed relationship are eligible under the Fresh Start principle where this relationship has ended, and they have divested themselves of their interest in the previous dwelling/dwellings.

Applicant(s) that previously purchased or built a residential dwelling/dwellings but has been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. However, a separate assessment of creditworthiness will be conducted by the underwriters. This applies when the applicant has exited the insolvency/bankruptcy proceedings

Termination of Relationships - Separation/Divorce/Dissolution of Civil Partnership/Civil Annulment

In recognition of instances where an individual has undergone a separation/legal separation/divorce or otherwise and has relinquished their rights to the family home property, an exemption to the First-Time Buyer eligibility criteria can be applied under the Fresh Start Principle.

In cases such as these, the applicant must meet all of the following criteria (This will need to be confirmed by way of a solicitor's letter before drawdown of any loan):

be separated/legally separated/divorced (i.e. their marriage or civil partnership or partnership has been legally or otherwise dissolved) under a Court Order or by a separation agreement.

if there is no separation agreement regarding the breakdown of a relationship, a sworn statement should be obtained confirming: There is no formal separation agreement.

There are no court proceedings pending under family law legislation.

The position in relation to maintenance and other payments, if any.

have left the family home property and retained no interest in it, and

have divested themselves of any interest in any dwelling/dwellings, purchased prior to the separation/legal separation/divorce or otherwise.

the property under the Local Authority Purchase and Renovation Loan is the first residential property purchased since leaving the family home.

where either party to a loan application is separated or divorced, the following details should be supplied with the application;

The extent of maintenance being received or paid by the applicant.

The circumstances under which the maintenance payments can cease (typically age of majority of dependent children and/or remarriage).

Details of any payment(s) to be made in respect of the removal of spousal/partnership rights to the existing family home or other property which could have a bearing on ability to repay the mortgage.

That no onerous conditions exist.

Insolvency/Bankruptcy

A person who has exited insolvency/bankruptcy proceedings and had previously purchased a dwelling/dwellings may still be eligible for the Local Authority Purchase and Renovation Loan if because of insolvency or bankruptcy they had to sell or had been divested of their home.

They must have exited insolvency/bankruptcy at least 12 months previously to be eligible to apply. Additionally, they must have a clean credit record for a minimum duration of no less than 12 months prior to their Local Authority Purchase and Renovation Loan application. 

Where any of the persons making an application previously purchased or built a dwelling/dwellings that person demonstrates, that they have sold, or have been divested of, that dwelling/dwellings as part of a personal insolvency or bankruptcy arrangement or proceedings or other legal process consequent upon insolvency, then the previous purchase or building of the dwelling/dwellings concerned shall not render the applicant(s) ineligible for a Local Authority Purchase and Renovation Loan.

Property Eligibility

The property must:

• Be situated in the Republic of Ireland
• Be eligible for the Vacant Property Refurbishment Grant whether derelict, non-habitable or simply vacant.
• You cannot use the Local Authority Purchase and Renovation Loan to purchase a home only. The conditions of the Local Authority Purchase and Renovation Loan require the property to be brought up to compliance with building regulations, so the purchase of a derelict home without provision for renovations works to bring it up to the required standard is not covered by the Local Authority Purchase and Renovation Loan.
•  The maximum end-of-works value of the property cannot exceed the existing price limits of the scheme:
  • €415,000 in Dublin, Kildare or Wicklow,
  •  €375,000 in Cork, Galway City, Louth or Meath,
  •  €345,000 in Clare, Galway(County)Kilkenny, Limerick, Waterford, Westmeath or Wexford
  •  €310,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo or Tipperary.

Adequate home insurance must be in place, and the Local Authority's interest must be noted on the policy

The property must be for your principle private residence and cannot be rented out.

Loans Post-Drawdown

Early Repayment Fee

An applicant has the possibility to repay this loan early, either fully or partially. In this case, an early repayment charge may apply. If an early repayment charge applies, the Local Authority will calculate the level of the early repayment charge due to be paid by the borrower, should they decide to repay the loan before the end of the term. The early repayment charge will be calculated as follows:

• Reducing balance redemption amount [A]
• Original Irish bond yield for loan term [B]
• Current Irish bond yield for remaining term [C]
• Remaining term in days [T]

where breakage calculation = (A x (B-C)) x T divided by 365.

Adding/Removing Borrowers

Removing a borrower

A borrower can be removed from a mortgage (for example due to relationship breakdown), however as this may have implications for the security and repayment of loan it can only be done with the consent of the Local Authority.

Adding a borrower

In certain circumstances (borrower enters into a new relationship), a borrower may seek to add a new borrower to the mortgage. This may be facilitated by your local authority but subsequent addition of borrowers which are an attempt to circumvent Local Authority Purchase and Renovation Loan scheme rules will not be facilitated.

Good Financial Standing

Applicant(s) must:

• have a credible savings record of a minimum of 12 months duration immediately prior to making an application.
• provide evidence that their savings have accumulated over a period of at least 12 months.
• provide bank or similar statements (post office, credit union, etc.) for a 12-month period immediately prior to making an application clearly showing a credible and consistent track record of savings.

Deposit amount

• The minimum deposit you need will depend on the level of renovation works required,
  • Vacant (Minor works)- 10% of the Purchase Price + 10% of the Renovation Cost
  • Vacant (Major works)- 10% of the Purchase Price + 10% of the Renovation Cost
  • Derelict - 20% of the Purchase Price + 10% of the Renovation Cost
• 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.
• All of the applicant(s) financial contribution (from unborrowed sources) will be in place and evidenced in the applicant(s) bank account prior to loan drawdown. Their source must be verified and provided as part of the Local Authority Purchase and Renovation Loan application.
• Unexplained lump sum lodgements made to any account within the 12 month period prior to making a Local Authority Purchase and Renovation Loan application must be explained and supported by documentary evidence if they are to be considered when computing the cash savings contribution to the deposit.
• For clarity, even if gifts or money from other unborrowed sources make up more than the the minimum deposit  , documented cash savings of at least 3% of the total value of the purchase price and renovation cost are still required.

Please note: The applicant(s) must provide bank or similar statements (post office, credit union, etc.) clearly showing a credible and consistent track record of savings. For clarity, it is not necessary that the minimum deposit is solely gathered within the preceding 12 month period. However, a track record of savings in the 12 month period prior to application must be consistent and would be expected to show regular savings and the deposit being maintained and/or increased in this period. If this is not the case, further financial information will be required.

Maximum Loan amount and term

• The maximum loan amount is specified in the Housing Purchase and Renovation Loans Regulations 2024 (SI No. 353 of 2024) or any Regulations or enactment amending or replacing those Regulations.
• The maximum mortgage loan (including the bridging loan) cannot exceed;
  •       €373,500 in Dublin, Kildare or Wicklow, or,
  •      €337,5000 in Cork, Galway City, Louth or Meath, or
  •     €310,500 in Clare,Galway (County) Kilkenny, Limerick, Waterford, Westmeath or Wexford, or
  •     €279,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary.
• The maximum loan term is 30 years up to the age of 70 of the oldest borrower and must be repaid by an annuity of principal and interest combined. All payments shall be made at monthly intervals by direct debit. The term may be shorter depending on your age. The number of years between the date of loan drawdown and the oldest applicant reaching the age of 70 determines the length of time over which you can borrow. This means that a single applicant aged 35 years can have maximum term of 30 years, but a single applicant aged 45 years is limited to a maximum term of 25 years. In the case of a joint application, one applicant aged 35 years and the other aged 45 years, the couple is limited to a maximum term of 25 years.

Interest Rate

A Local Authority Purchase and Renovation Loan has two interest rates, a fixed rate mortgage and a variable rate bridging loan. The variable rate bridging loan is an interest only loan and will be equal to the Vacant Property Refurbishment Grant amount that you have been approved for.

• 4.00 % for loans with a term up to 25 years (APR 4.07%)
•  4.05% fixed for loans over 25 years and up to 30 years (APR 4.13%)

A fixed interest rate loan is a loan where the interest rate stays the same throughout an agreed period.  The annuity mortgage element of the Local Authority Purchase and Renovation Loan interest rate is fixed for the full term of the mortgage. This means that your loan repayments are the same every month for the lifetime of the mortgage. Interest rates are subject to change at any time before the drawdown of a Local Authority Purchase and Renovation Loan. The interest rate is determined by the applicable rate on the date of drawdown and is fixed for the full term.

Variable rate loans are loans for which the interest rate can rise or fall. For the bridging loan element of the Local Authority Purchase and Renovation Loan you will only be required to make repayments that cover the interest on the loan, you will not be making any payments off the loan itself each month.

For the variable rate bridging loan the LAPR offers this at:

3.5% interest only variable rate for 2 years (APR 3.56%).

The full amount of the loan will be repaid by you when you receive the Vacant Property Refurbishment Grant (VPRG). However, you can pay off earlier if you wish for no charge.

Borrowing Record

Where the applicant(s) have a previous or existing borrowing record, this will be considered as part of the application for the Local Authority Purchase and Renovation Loan.

• Applicant(s) must provide evidence of all existing borrowings with 12-month up-to-date statements.

Income

Only income originating in the Republic of Ireland or Northern Ireland by applicants with a right to reside and work in the State will be reckonable in calculating borrowing and repayment capacities.

Eligibility for the scheme is dependent on an applicant’s gross income being within the relevant income ceiling. As set out below, gross income is deemed as being the income (including relevant social welfare payments) reported for the payment of tax in the previous tax year.

The income details provided by the applicant(s) must be supported by the documentation set out in Appendix 1 (for applicants who are in PAYE employment, contract employment, self-employed or a company director).

Contract Employment Income

Contract income will be considered in repayment capacity provided:

• The applicant works in an industry where contract income is regarded as common, e.g. (retail, hospitality, education, health, and financial services)
• The applicant has been on contract in similar industry for at least the last two years or, where recently commenced a contract, has been employed in a similar industry for a minimum of the previous two years before their application date.
• Where an applicant(s) contract has three or fewer months to expiry and the contract provider has given written confirmation that the contract is to be renewed.

Further evidence of contract employment may be sought by the Local Authority.

Treatment of Additional/Temporary Payments for Repayment Capacity

There are limitations on the amount of payments above basic earned income (such as overtime, bonus, subsistence, commission, allowances etc.) that can be allowed for repayment capacity.

State benefit payments

Generally, social welfare payments would not be considered as part of repayment capacity. However, certain long-term State benefit payments may be considered as repayment income only where the main income source is of an earned nature (i.e. more than 50% of the income that forms the full Home Loan application is from a source other than State benefit payments).

Long-term State benefit payments considered are:

• State Pension (Contributory).
• State pension (Non-Contributory).
• Widow's/Widower's Pension.
• Blind Pension.
• Invalidity Pension.

In calculating borrowing and repayment capacity, 100% of the above long-term State benefit payments will be reckonable.

The long-term nature of the payment must be confirmed by the Department of Social Protection or other relevant Government Department.

Maintenance

You must include maintenance payments where you are responsible for paying maintenance to a third party, and where there is a maintenance order in place, a copy of the maintenance order will be required. Similiarly, where you receive maintenance payments, which are the subject of a maintenance order, these payments must be evidenced. If the maintenance is not paid directly to the applicant's bank account, a copy of the maintenance order must be provided.

Where either party to a mortgage application is separated or divorced, the following details should be supplied with your application;

• The extent of maintenance being received or paid by the applicant,
• The circumstances under which the maintenance payments can cease,
• Details of any payment(s) to be made in respect of the removal of spousal/parternship rights to the existing family home or other property which could have a bearing on the ability to repay the mortgage.

Valuation Reports 

A Valuation Report carried out by an approved independent or Local Authority Valuer, will be provided as part of the loan application process. The Valuation Report will be based on the current valuation of the property and the end of works value (after the works are completed in compliance with the building regulations). In the event the Local Authority has reservations around the valuation(s) provided, it should obtain an independent valuation, at its own expense. The valuation should be completed on a Valuation Report such as the indicative template form set out in Local Authority Purchase and Renovation Loan Valuation Report_May 2023.pdf (purchaseandrenovationloan.ie)

The Valuation Report must:

•  be completed in full, with no unanswered questions.
•   be signed and dated with the Valuer firm’s stamp imprinted thereon. No amended valuation amounts, either by overwriting or by the use of correction fluid, will be accepted.
•  not contain significant disclaimers or concerns about the condition/saleability of the security property. Valuation/survey fees are payable by the applicant(s) to the firm of Valuers who undertake the valuation.

Stage 1  Documentation

The Stage 1 process for the Local Authority Purchase and Renovation loan for VPRG-eligible home requires a Registered Construction Professional (RCP) to complete both the Stage 1 Building Survey & Scope of Works Report and the Stage 1 Cost Plan.

* A Registered Construction Professional has the same meaning as defined in the Regulation of Providers of Building Works and Miscellaneous Provisions Act 2022 – “registered construction professional” means a person whose name is entered in the register for quantity surveyors or register for building surveyors established under Part 3, 4 or 5 respectively of the Building Control Act 2007 or whose name is entered in the register kept by the Institution of Engineers of Ireland under  section 7 of The Institution of Civil Engineers of Ireland (Charter Amendment) Act 1969.

Stage 1 Building Survey & Scope of Works Report:

This is a comprehensive document that requires the RCP to undertake a condition survey of the building and provide an assessment of each building element and the associated sub elements. The RCP is also responsible for providing a scope of works for each building element and associated sub elements. The scope of works is to be sufficient to bring the building back to a habitable condition in accordance with building regulations

The Stage 1 Cost Plan is completed after the production of the Building Survey and Scope of Works document. The hard costs for the existing building and any new build are to be detailed separately.

Stage 2  Documentation

Stage 2- If your project meets the Local Authority Purchase and Renovation Loan lending criteria and you have the funding to meet the estimated project costs, you will proceed to Stage 2.

You will be required to complete the Stage 2 Scope of Works and Cost Plan.

If after the Local Authority reviews the Stage 2 documents and the project meets the schemes lending criteria an Approval in Principle may be issued.

Guidance on the completion of these documents is available here: Application Form | Local Authority Purchase and Renovation Loan

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 LAPR 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

Proof of Right to Reside 

• Current valid Irish, UK, EU/EEA or Swiss Passport
• Current valid Irish Residence Permit

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
• 12 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 LAPR 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.