An EdgeRouter firmware update from 1.8.5 to 1.9 broke my L2TP based VPN. After the update my l2tp connection to local subnets was no longer working. Note that I have a load balancing setup with eth0 and eth1 being the load balanced WAN interfaces.
It seems that due to the changes done for the l2tp in firmware 1.9 the way the routing is done changed a bit.
[L2TP/IPsec] Use kernel mode support for L2TP/IPsec server. This includes adding pppd plugin and xl2tpd kernel mode support, and it should provide significant performance improvements for L2TP/IPsec server. Discussed with @mdu113 @NVX @stralex @pstolpe @train_wreck @DemonX @rsully @jbeez @PaulCarlucci @hyphenatic stasv 6keazik7 for example in these threads: 1 2 3 4.
I had a thread opened for this issue at UBNT forum: Update to 1.9 broke my l2tp/ipsec
The solution was to manually re-add the default routes to the routing tables associated to the load balancing interfaces. This can be done by using the script
/usr/sbin/ubnt-add-connected.pl
In my case running it solved the problem:
ubnt@ubnt:~$  /usr/sbin/ubnt-add-connected.pl
Connected routes found = 9
Route tables found = 2
Adding routes to table 201
Adding routes to table 202
load-balance member [G-eth1]
  status = inactive
  route table 202
    blackhole default  metric 256
    10.255.255.0 dev l2tp0  scope link
    40.0.0.0/30 dev vti0  scope link
    x.x.x.0/23 dev eth0  scope link
    127.0.0.0/8 dev lo  scope link
    172.16.44.111 dev l2tp0  scope link
    192.168.5.0/24 dev eth5  scope link
    192.168.6.0/24 dev eth6  scope link
    192.168.7.0/24 dev eth7  scope link
    192.168.11.0/24 dev eth2  scope link 
load-balance member [G-eth0]
  status = active
  route table 201
    default via x.x.x.1 dev eth0
    blackhole default  metric 256
    10.255.255.0 dev l2tp0  scope link
    40.0.0.0/30 dev vti0  scope link
    x.x.x.0/23 dev eth0  scope link
    127.0.0.0/8 dev lo  scope link
    172.16.44.111 dev l2tp0  scope link
    192.168.5.0/24 dev eth5  scope link
    192.168.6.0/24 dev eth6  scope link
    192.168.7.0/24 dev eth7  scope link
    192.168.11.0/24 dev eth2  scope link

