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.
- 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%.
- 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’.
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.