In 1994-95, after several seasons of consolidation and now managed by former Preston North End and Bury player Alan Tinsley, Lancaster won the Northern Premier League Presidents Cup, their first trophy in twenty years, and the following season, as champions of Division One, were promoted to the Premier Division whilst also winning the Division One League Challenge Cup to complete a League and cup double. Two consecutive Northern Premier League Challenge Cup victories followed in 1999-2000 and 2000-02 under Tony Hesketh and after finishing eighth in 2003–04 the club were placed in the newly established Conference North. This proved to be a hugely successful period for Lancaster with the club enjoying healthy league positions and several cup successes as well as reaching the FA Cup first round proper on four occasions. However, following a club takeover, financial problems led to the club folding at the end of the 2006–07 season, in which they suffered a 10-point deduction for going into administration, and finished bottom of the league with one point. During the summer, the club reformed and were accepted back into Division One of the Northern Premier League.