Concessionary purchase Where Giftor Will Remain

Our standard acceptability

Acceptable

Criteria definition:

Indicates if we accept concessionary purchase applications where the current owner is providing a gift of equity AND WILL REMAIN IN THE PROPERTY. For example, Mr Lane has agreed to sell a property he owns to his son (Tony) for £150,000. The property is worth £200,000. Tony 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) and is happy for Mr Lane senior to remain in the property.

Policy Notes:

We can consider concessionary purchases where equity is being gifted by family or friends who will remain in the property. These are assessed on a case by case basis with consideration to the reason. The gifter will need to sign a form of consent.

Criteria categories:

• concessionary and undervalue transactions
• Policy

Last updated:

29 August 2018