diff --git a/CMakeLists.txt b/CMakeLists.txt
index 77ed236c..840f54fc 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -98,8 +98,8 @@ endif()
 
 ExternalProject_Add(libloadorder
     PREFIX "external"
-    URL "https://github.com/Ortham/libloadorder/archive/14.1.0.tar.gz"
-    URL_HASH "SHA256=9ff9c73612bc9e375759e122bfd56a4a45d8a4ca36837f610c05ab52fef9d67b"
+    URL "https://github.com/Ortham/libloadorder/archive/14.2.0.tar.gz"
+    URL_HASH "SHA256=247969e3fb67ad0a883ac81ac52a4258ee92b8417d11f45308cc23ccc0d61b36"
     CONFIGURE_COMMAND ""
     BUILD_IN_SOURCE 1
     BUILD_COMMAND cargo build --release --manifest-path ffi/Cargo.toml --target ${RUST_TARGET} &&
diff --git a/src/api/api.cpp b/src/api/api.cpp
index 1c12dd46..d0e3f047 100644
--- a/src/api/api.cpp
+++ b/src/api/api.cpp
@@ -112,15 +112,18 @@ LOOT_API std::unique_ptr<GameInterface> CreateGameHandle(
   }
 
   auto resolvedGamePath = ResolvePath(gamePath);
-  if (!fs::is_directory(resolvedGamePath))
+  if (!fs::is_directory(resolvedGamePath)) {
     throw std::invalid_argument("Given game path \"" + gamePath.u8string() +
                                 "\" does not resolve to a valid directory.");
+  }
 
   auto resolvedGameLocalPath = ResolvePath(gameLocalPath);
-  if (!gameLocalPath.empty() && !fs::is_directory(resolvedGameLocalPath))
-    throw std::invalid_argument("Given game local path \"" +
-                                gameLocalPath.u8string() +
-                                "\" does not resolve to a valid directory.");
+  if (!gameLocalPath.empty() && fs::exists(resolvedGameLocalPath) &&
+      !fs::is_directory(resolvedGameLocalPath)) {
+    throw std::invalid_argument(
+        "Given game local path \"" + gameLocalPath.u8string() +
+        "\" resolves to a path that exists but is not a valid directory.");
+  }
 
   return std::make_unique<Game>(game, resolvedGamePath, resolvedGameLocalPath);
 }
diff --git a/src/tests/api/interface/create_game_handle_test.h b/src/tests/api/interface/create_game_handle_test.h
index 4192351b..9bf216fe 100644
--- a/src/tests/api/interface/create_game_handle_test.h
+++ b/src/tests/api/interface/create_game_handle_test.h
@@ -115,9 +115,15 @@ TEST_P(CreateGameHandleTest, shouldThrowIfPassedAGamePathThatDoesNotExist) {
                std::invalid_argument);
 }
 
-TEST_P(CreateGameHandleTest, shouldThrowIfPassedALocalPathThatDoesNotExist) {
+TEST_P(CreateGameHandleTest, shouldSucceedIfPassedALocalPathThatDoesNotExist) {
+  EXPECT_NO_THROW(handle_ = CreateGameHandle(
+                      GetParam(), dataPath.parent_path(), missingPath));
+  EXPECT_TRUE(handle_);
+}
+
+TEST_P(CreateGameHandleTest, shouldThrowIfPassedALocalPathThatIsNotADirectory) {
   EXPECT_THROW(
-      CreateGameHandle(GetParam(), dataPath.parent_path(), missingPath),
+      CreateGameHandle(GetParam(), dataPath.parent_path(), dataPath / blankEsm),
       std::invalid_argument);
 }
 
diff --git a/src/tests/api/internals/game/load_order_handler_test.h b/src/tests/api/internals/game/load_order_handler_test.h
index baca7bdb..4b2ea975 100644
--- a/src/tests/api/internals/game/load_order_handler_test.h
+++ b/src/tests/api/internals/game/load_order_handler_test.h
@@ -122,10 +122,19 @@ TEST_P(LoadOrderHandlerTest, constructorShouldThrowIfNoGamePathIsSet) {
                std::invalid_argument);
 }
 
-#ifndef _WIN32
-TEST_P(LoadOrderHandlerTest, constructorShouldThrowOnLinuxIfNoLocalPathIsSet) {
-  EXPECT_THROW(LoadOrderHandler(GetParam(), dataPath.parent_path()),
-               std::system_error);
+#ifdef _WIN32
+TEST_P(LoadOrderHandlerTest, constructorShouldNotThrowIfNoLocalPathIsSet) {
+  EXPECT_NO_THROW(LoadOrderHandler(GetParam(), dataPath.parent_path()));
+}
+#else
+TEST_P(LoadOrderHandlerTest,
+       constructorShouldNotThrowIfNoLocalPathIsSetAndGameTypeIsMorrowind) {
+  if (GetParam() == GameType::tes3) {
+    EXPECT_NO_THROW(LoadOrderHandler(GetParam(), dataPath.parent_path()));
+  } else {
+    EXPECT_THROW(LoadOrderHandler(GetParam(), dataPath.parent_path()),
+                 std::system_error);
+  }
 }
 #endif