Concessionary purchase (Family)

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept concessionary purchase applications where the current owner is related to one of the applicants. For example, Mr Smith has agreed to sell a property he owns to his grandson (Joe) for £150,000. The property is worth £200,000. Joe wishes to purchase the property for £150,000 and would like a lender who will use the difference between the property value and the purchase price as a deposit (£50,000).

Policy Notes:

We can accept the equity being 'gifted' as the deposit for a family purchase. The family member who is the vendor must vacate the property and not retain a financial interest.

Criteria categories:

• concessionary and undervalue transactions
• Policy

Last updated:

29 August 2018