19 April 2025
By Mary Bermingham
mary@TheCork.ie
When you hear the word “housing” the above typical estate might spring to mind, but the Local Authority Purchase and Renovation Loan aims to make older derelict properties habitable
What is the Local Authority Purchase and Renovation Loan?
The Local Authority Purchase and Renovation Loan (LAPR) is a government-backed mortgage and loan that helps you to buy and renovate a derelict or uninhabitable home.
The loan is for first-time buyers, and ‘fresh start applicants’, who have been unable to get funding from commercial lenders, such as banks and credit unions. It is an extension of the Local Authority Home Loan. You must qualify for the Vacant Property Refurbishment Grant to get this loan.
The loan has 2 parts:
- A fixed rate mortgage loan
- A variable rate bridging loan
The bridging loan is for the amount you’ve been approved for the Vacant Property Refurbishment Grant. You pay the bridging loan back as soon as you get the grant. The bridging loan is interest-only, which means you repay the balance and the interest but are not charged for the loan.
You must occupy the property as your normal place of residence. You cannot use the loan for rental properties.
How much can I borrow?
The amount you can borrow depends on:
- How much you can afford to borrow. You need to show that you can afford your monthly mortgage repayments, which must be less than 35% of your net household income.
- The loan to value for the home you are buying.
- The Vacant Property Refurbishment Grant amount you have been approved for
- The level of renovation work you need for your home and the project viability
- The estimated value of your home
The value of your home for this loan is taken as the estimated value of the property after the renovations are done. This value cannot exceed the maximum market property values for the Local Authority Home Loan in your area.
The maximum value is different depending on where your home is located. It is currently €330,000 in Cork
Do I qualify for the Local Authority Purchase and Renovation Loan?
The Local Authority Purchase and Renovation Loan is available to first-time buyers and ‘fresh start’ applicants. Fresh start applicants include people who are divorced, separated, or whose relationship has ended and who have no financial interest in the family home. It also includes people who have gone through personal insolvency or bankruptcy.
You must have been in continuous employment or self-employment for a minimum of 2 years, if you are the primary applicant. Secondary applicants must have been in continuous employment for a minimum of 1 year. Income from an alternative source may be acceptable. You must also have a gross annual income of less than €70,000 for single applicants and €85,000 for joint applicants and be able to provide the minimum deposit for the loan.
You must also show that you can afford your repayments. These repayments must be less than 35% of your net household income.
You should speak with you local Citizens Information Service for more detailed information relating to the qualifying conditions
How to apply for the Local Authority Purchase and Renovation Loan
To apply for the Local Authority Purchase and Renovation Loan, complete the application form which you can do.
You submit your application and supporting documents to the housing section of the local authority in the area where you want to buy and renovate your home. In Cork, that could be either Cork City Council or Cork County Council, depending on the area the property is in. You can submit your application by post or in person. Contact your local authority to check how they would like you to submit your application.
You will get a decision in writing about your application.
Further information on this and other topics is available from Cork City Centre CIC in Cornmarket Street, open to the public on Mondays, Tuesdays, Thursdays and Fridays from 9.45am to 12.30pm and Wednesdays from 2pm to 4pm, Tel 0818 07 6950 (Lines open Mon-Fri 10am-4.30pm). Blackpool CIC is also open to the public on Tuesdays and Thursdays from 10am to 1pm and 2pm to 4pm, Tel 0818 07 6890 while Hollyhill CIC is open Mondays and Fridays from 10am to 1pm and 2pm to 4pm, Tel: 0818 07 6850.
Information is also available from the Citizens Information Phone Service Tel: 0818 07 4000 (9am – 8pm, Mon – Fri) or online at www.citizensinformation.ie