Concessionary Purchase/Genuine Bargain Price

Concessionary Purchase/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.

Acceptable scenarios

  • Interfamily sale (buying from a relative)
  • Employee buying from their employer
  • Private tenant buying from their landlord

Lending terms

  • 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%.
  • We will not lend more than 100% of the discounted price on a Genuine Bargain Price.

How to apply

  • Applications can be submitted via NFI Online, the ownership type selected should be ‘Genuine Bargain Price’.

Lifetime Tenancy

If your client is purchasing a property and the current occupier will remain in the property, but won’t be on our mortgage and a Lifetime Tenancy has or will be created on or before completion, we’ll decline the application.

Where a current occupier will remain in the property and won’t be on our mortgage, this is acceptable subject to:

  • The current occupier signing one of the following:
    • Our occupiers consent to mortgage incorporated in the mortgage deed (England and Wales)
    • Mortgage Deed for Scotland – Consent Declaration (Scotland)
    • Deed of Consent (Northern Ireland)
  • The current occupier not having a Lifetime Tenancy.
    • The solicitor will carry out checks and inform us if there’s a Lifetime Tenancy.

We can also accept applications where the Lifetime Tenancy will be revoked before completion.