Family Sale at a discounted price
Where your client is purchasing from a family member at a discounted price we can accept applications up to 85% loan to value.
The discount on the purchase price must be a minimum of 15% of the property value and it must be a genuine discount and not subject to any future repayment or claw back. The family member must move out on completion and the property being purchased must be solely for your client to live in as their main residence.
A family member is defined as a parent; child; sibling; grandparent; grandchild; aunt; or uncle.
Mr B owned a second property which he wanted to sell to his son and his partner. The house was valued at £160,000 but he had agreed to let his son purchase the property for £135,000 (£25,000 discount).
At the time, the son and his partner were renting, which had made saving for a deposit difficult after paying private rental charges and the costs of running the home.
The case was referred to us by the father’s financial advisor. We were able to agree a mortgage for the full amount, £135,000 (84% LTV).