Genuine Bargain Price is where the property is knowingly being purchased by your client below the market value. The purchase can't be part of a recognised scheme such as Right to Buy or Shared Ownership.
- Interfamily sale (buying from a relative)
- Employee buying from their employer
- Private tenant buying from their landlord
- The discount must be a gift, not a loan, and there must be no conditions attached to it.
- A deposit is not required unless the loan exceeds our maximum LTV.
- LTV is calculated using the open market value with a maximum of 90%.
- Applications can be submitted via NFI Online, the ownership type selected should be ‘Genuine Bargain Price’.
- If the current owner of the property will continue to live in the property after completion of the sale to the mortgage applicant, this constitutes a lifetime tenancy situation. A Lifetime Tenancy situation that exists before or after completion will be unacceptable.