Residential policy
Also known as a concessionary purchase, an undervalue purchase or use of gifted equity as deposit for a purchase is acceptable when buying from a family member. It is also acceptable when a tenant is buying from their landlord. We don’t allow any other scenarios
How it works
The LTV will be calculated on the property value instead of the purchase price and we will not lend more than the discounted purchase price.
For example, on a property valued at £500,000 sold at a discount for £400,000, we’d lend up to £400,000 and calculate the LTV as 80%.
Conditions
The legal rep must establish that the person selling the property is not insolvent by obtaining a statutory declaration of solvency and a bankruptcy search. They must also arrange suitable indemnity insurance for the full value of the property. These must be supplied to us on completion, and the buyer and seller must have separate legal representation.
The seller cannot live in the property after it has been sold.