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 derelicat, 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:

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.

Stage 1 Building Survey and Scope of Work and Stage 1 Cost Plan should be submitted, and your Vacant Property Refurbishment Grant Approval or Approval in Principle should be provided if it’s available. The valuation of the property to be purchased and end of works valuation (if applicable) should be submitted along with proof of building professional’s indemnity insurance.

All documents will be submitted for Underwriting. If the loan application passes the Stage 1 assessment your application will progress to Stage 2. The Stage 2 scope of works and cost plan signed by your registered construction professional should then be submitted.  

¹ For the purposes of this Scheme, a marriage is deemed to have ended when it is the subject of a decree of judicial separation, divorce or decree of dissolution or nullity, or a civil partnership has ended.

² A person who has exited Insolvency/bankruptcy proceedings and had previously purchased a home but has been divested of these through these proceedings may still be eligible to apply for a Local Authority Purchase and Renovaiton Loan.