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Specialist Concessionary Purchase Mortgage Advisors
Been gifted equity on a property? Complete your concessionary purchase with specialist mortgage guidance from our team of expert brokers and advisors.
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Supporting Your Concessionary Purchase Journey
If someone has decided to sell a property to you at below market value, you will no doubt be feeling excited about the future. Our concessionary purchase mortgage advisors share in your enthusiasm, and can’t wait to get started helping you achieve the finance you need to secure the property at a discounted price.
We’ve helped many clients navigate concessionary purchases and other unique gifting options such as a gifted equity deposit mortgage and are committed to taking the stress and strain out of the application process. Even if your credit is imperfect and your deposit is limited, we’re here to take the mystery out of concessionary purchase mortgages and help you succeed with securing that below market value purchase.
What Is A Concessionary Purchase Mortgage?
A concessionary purchase mortgage is a mortgage that is used to purchase a property at below its full market value. It is often used when you are purchasing from a friend or family member and might struggle to afford the property at its true market value. Essentially, you are buying the property at a discounted purchase price to help you get on that first rung of the property ladder.
The equity is basically gifted to you by the seller. Concessionary mortgages can therefore be a useful way for first-time buyers or those on low incomes to achieve a home of their own and get on the property ladder.
A concessionary purchase can also occur when a landlord decides to offer their tenant the option of buying their rental property at a discounted price. If you think a concessionary mortgage might suit your situation, talk to a member of our friendly team and we’ll explain the options available!
A concessionary mortgage is different to mortgages that involve gifted deposits. This is where a person gifts funds to a buyer so they can buy a property for its actual value as opposed to getting it at a discounted price.
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Finding The Best Concessionary Purchase Mortgage Deal For Your Circumstances
Gifted equity is a wonderful thing, helping first-time buyers, tenants and employees afford and achieve a home of their own. However, if you’re involved in a concessionary purchase, there are some considerations.
We are a specialist mortgage broker and our expert mortgage advisors have years of experience assisting people in all sorts of circumstances find the finance they need to complete their concessionary purchase. Even if you have bad credit or no deposit to speak of, we can help you locate lenders likely to offer concessionary purchase mortgages.
We’re on a mission to prove that there’s a yes out there for every buyer. If you’re ready to start your mortgage journey, we’re ready to get to work!
How Does A Concessionary Purchase Mortgage Work?
Concessionary purchase mortgages work in a similar way to a standard residential mortgage. Many lenders will consider the deposit to be the equity provided by the discount and will base their loan-to-value calculations on the market value to offer you a mortgage that’s 100% of the price you are paying for the property.
There may be exceptions to this where it is possible you might have to find additional deposit funds to secure the mortgage. This often occurs in circumstances where the purchase isn’t via the assistance of a family member.
Turning Your Nightmares Into Dreams
When you think you’ve hit that brick wall and have all but given up hope of finding mortgage finance, When the Bank Says No are here to turn your ‘No’ into a ‘Yes’. We have access to a range of specialist lenders who are willing to help those that the High Street banks just won’t touch. Get in touch today and see how we can turn your dreams into a reality.
Are There Different Types Of Concessionary Purchases?
Concessionary purchases can be made between anyone, but are most common between family members. Other sellers who might offer to sell you their property at a reduced rate or a discounted value include landlords, developers offering discounts, and even employers.
So why would a landlord offer a discounted price? It may be that they are looking to sell the property but want to avoid the inconvenience of selling on the open market. Consequently, they are willing to give you first refusal to buy your rental property at a purchase price below the market value. This sort of offer is more likely if you’ve been a long-term tenant, and will usually only apply to those who have been tenants for at least 12 months.
If you are being offered a gift of equity through one of the concessionary purchase options, our experienced mortgage advisors can help you decide how to proceed. A large gift of equity can significantly reduce the deposit you need to raise (or even remove the need for one), and this can open up a wider variety of mortgage options. Based on the type of concessionary purchase you are making, we can identify the best next steps to take.
Is There Anything That Will Impact My Eligibility For A Concessionary Purchase Mortgage?
The factors impacting your eligibility for a concessionary purchase mortgage will be the same as for any other. First off, property type will be an important consideration for mortgage lenders, as will deposit size, credit history and income.
With many lenders having strict eligibility criteria, failing to make sure you fulfil them before applying can lead to a disappointing concessionary purchase mortgage refusal. If you have a bad credit score, some adverse credit history or anything at all you feel concerned about, our specialist concessionary mortgage advisors can help you determine which lenders to apply to, safeguarding your chances the first time around. We don’t care about the monsters in your closet – we care about helping you secure your new home! Get in touch today.
Frequently Asked Questions
How Much Deposit Would I Need For A Concessionary Purchase Mortgage?
The amount of deposit required will depend on the property value and the lender’s policies. Some lenders may look at the amount discounted from the property’s open market value and decide to treat this as the deposit. As a result, you might not need to have a deposit at all. Other lenders will still require a traditional deposit based on the discounted property price, likely in the region of 5-10% of your own cash or money saved, although this will depend on your individual personal circumstances. However you would like to proceed, and whatever your financial situation, we can help you navigate your concessionary house purchase and locate the right mortgage lender for you.
Are There Any Limitations That Come With A Concessionary Purchase Mortgage?
Whilst a concessionary purchase mortgage can be helpful in certain circumstances, there are some limitations attached to this type of mortgage application which are worth bearing in mind. For instance, the discount cannot be a private loan and must be considered as a gift – that means the seller cannot own a share of the property and no conditions should be attached to the transaction.
Another limitation to bear in mind is that most lenders will be wary of situations where the previous owner still intends to live in the property as their primary residence; this can be quite common with family members selling the family home to children, and may cause issues with rights of ownership. A good example of this is if parents want to remain in a property once it has been sold to a family member. Some lenders may allow parents to remain in a property, but only if they sign a waiver of rights.
Concessionary purchase mortgages have added nuances over and above the usual process of a mortgage application so it’s important to enlist the help of our expert mortgage advisors as soon as possible. We’ll help you understand the best way to proceed according to your circumstances, and seek out the lender most suited to your property ownership plans.
What Are The Tax Implications Of Concessionary Purchases?
Concessionary purchases can come with additional tax implications and that’s why it’s important to seek professional advice before making your first move. Stamp Duty Land Tax (SDLT), Capital Gains Tax (CGT) and Inheritance Tax (IHT) are all potentially relevant depending on the circumstances of the sale.
If the property purchase is above the current threshold that means you have to pay stamp duty; this will be based on the actual sale price rather than the market value, so you could save money in this respect. If the seller is a family member then there may be capital gains tax implications for them. CGT is payable based on the market value rather than the purchase price, but is only payable if it is the seller’s secondary property.
If you are buying the property from your parents or other family members, there could also be inheritance tax implications, but only if they pass away within 7 years of the sale. It is advisable to seek independent legal advice before entering into any concessionary purchase mortgage arrangement.
Can I Get A Concessionary Purchase Mortgage With Bad Credit?
Of course, bad credit is never ideal, but it is still possible to get a mortgage in these types of circumstances. You may find that adverse credit has an impact on the number of mortgage lenders and concessionary mortgage deals you are eligible for.
However, bad credit can be subjective, and not all lenders are concerned about it, particularly if you are able to put down a substantial deposit. If you need some help locating a concessionary mortgage product that is suitable for your specific financial circumstances, you can trust our friendly team. Talk to a mortgage broker today and we can begin the search, saving you approaching multiple lenders.
Specialist guidance for concessionary mortgages.
Concessionary purchase is a great way for family members to help first-time buyers get onto the property ladder by buying at a discounted purchase price below the full market value. Developers, landlords and employers may also choose to offer their properties to the market at a discounted selling price.
If you are taking part in a concessionary purchase, our expert mortgage broker advice will help things run smoothly. We’ll help you find a lender using our in-depth knowledge of the market and ensure your application is in the best possible shape.
With our guidance, market insights, and useful tools and information, you can feel confident that you’re putting your best foot forward with a concessionary purchase mortgage advisor on your side.
What Our customers say about us
Our Customers rank us 4.6 out of 5
We feel so fortunate to have found WTBSN
We found WTBSN after landing in a really tricky situation. We were out of term on our current mortgage and our existing broker had exhausted all options to re-mortgage due to the complex nature of our holiday let property (Grade II listed, timber frame construction and above commercial). Working under considerable time pressure due to the financial penalties being imposed by the existing lender, Brian was relentless in his search for a solution that would allow us to refinance a property that was on face value mortgageable. Thankfully, he didn’t give up and nine months later, we completed on the re-finance. We feel so fortunate to have found WTBSN and would like to thank Brian and the team sincerely for going the extra mile. We couldn’t have done it without you!
Rachel Reeves
Simply the best
I will never use another mortgage broker in all my time In property, these guys are the best at communication, customer service and keeping you informed. They are a level above every other broker I’ve come across and they actually get things done.
Emma, Samantha & Ashley have been fantastic in assisting me with 2 mortgages now and they’re superb at what they do. I wouldn’t hesitate to reccommend them to anybody out there who needs a mortgage sorting.
John Burton
I have been dealing with ben
I have been dealing with Ben @ When The Bank Says No. He has been great!! Professional, kept us up to date the whole way and made the entire process so simple. I would most definitely use him again and have already passed his details on to a family member. Thank you for all your help.
Elise
Thank you for your amazing support
Thank you for your amazing support and service during a really difficult time in my life. 5* is just not enough to demonstrate the level of support received. These guys go above and beyond. A personal service, with kindness and compassion. I highly recommend. If you’re struggling with your mortgage, then have a chat to this team. I cannot thank them enough for everything they have done.
Nabila Fowles-Gutierrez
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