Local Authority Purchase and Renovation Loan
The Local Authority Purchase and Renovation Loan (LAPR) is a Government backed mortgage and loan 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.
If you wish to purchase and/or renovate a Vacant Property Refurbishment Grant eligible home but cannot get sufficient funding from commercial lenders you can apply to your local authority for a LAPR.
The amount that you can borrow is dependent on the type of renovation work required and the end of works value of your home.
The 3 project types are
- Vacant property and minor works
- Vacant property and major works
- Derelict (meaning renovation on a property eligible for VPRG Derelict Top-Up)
Please note major renovations are defined in Building Regulations and refer to renovations where more than 25% of the building’s surface area (the building envelope) undergoes refurbishment or renovation. Minor works means works that are not major renovations.
A key feature of the LAPR is that a cheaper bridging loan is available. This is equal to the amount of the Vacant Property Refurbishment Grant and repayable once the grant is paid out. This has important benefits for you:
- As the repayment of the bridging loan is based on the Vacant Property Refurbishment Grant, your borrowing capacity is increased and you will be able to fund works with the LAPR that may not be available to you from bank funding.
- The viability of the project, which is based on the loan outstanding once the bridging loan is paid back, is improved. The LAPR will take into account the cost of the project, net of the Vacant Property Refurbishment Grant, when determining whether a project is viable or not.
What type of properties are covered?
- Homes that qualify for a Vacant Property Refurbishment Grant will be potentially eligible for the Local Authority Purchase and Renovation Loan.
- Property must be vacant for more than 2 years and meet all other Vacant Property Refurbishment Grant criteria
- The house will be your private principal residence
- The condition of the home will still be a factor in the lending criteria and project assessment.
- The estimated value of your home at the end of the renovation works cannot be above the current LAHL price limits these are €275,000 for Mayo.
Visit purchaseandrenovationloan.ie for further information and to find out if you are eligible