This week’s newsletter focuses on concessionary purchases, where a property is bought at market value or less, often by a family member or current tenant.
What Is a Concessionary Purchase?
A concessionary purchase involves acquiring a property where a portion of the equity is provided by a family member or landlord as a gift, eliminating or significantly reducing the need for a deposit. This arrangement can reduce the financial barrier for buyers, particularly first-time buyers and tenants looking to purchase their rented home.
Family-Focused Property Purchases
For families, a concessionary purchase can streamline the process of passing property between generations. Parents can sell their home or investment property to their children, using the property’s equity as a deposit, thereby lowering the barrier to entry, making it more manageable for the younger generation to step onto the property ladder.
Some lenders offer specialised options where parents can sell their residential property to their children and continue to live in the home.
Benefits for Landlords and Tenants
Landlords facing increased costs and regulatory changes in the buy-to-let market may find concessionary sales an attractive option to expedite property transactions, saving on estate agent fees and avoiding rental voids.
Tenants benefit from a streamlined path to ownership, often without needing to provide a cash deposit, as the sale price includes a ‘gift of equity’ from the landlord.
Get in Touch
Whether you’re exploring a family concessionary purchase or a tenant looking to buy from a landlord, our award-winning team is here to guide you through the process.
Contact us today at 0208 364 3444 or click here to schedule a free consultation call to find out more about how we can help you.