Concessionary Purchase/ Genuine Bargain Price

cakeforbrains

Evening!

We are buying our house from our landlord. We've had an offer of £310k accepted, but the house has been valued (only by estate agents) at £320-330k. Would this discount count as a Genuine Bargain Price or Concessionary Discount and therefore be taken into account with our LTV?

We have a 10% deposit already, but I just wondered if the discount from the landlord would help tip the balance in our favour in terms of actually getting the mortgage? We have a DIP from Nationwide on the full £279k, but I don't know how much to trust it.

Thank you!

ACG

Very few lenders (I can only think of 1) would class the discount as equity - assuming their surveyor agrees with the valuation.

As the equity that discount would represent could potentially be as low as 3% (keeping you in the same product bracket and same rates) I would just stick with the 90% products.

cakeforbrains

Thank you, ACG. Yes, it's not a huge amount is it. I think you're right.

I don't suppose you have any idea on the reliability of Nationwide DIPs do you? (Or anyone?) If anything, we slightly underestimated income on it as could probably evidence more with next payslip.

Thrugelmir

cakeforbrains wrote: »

We are buying our house from our landlord. We've had an offer of £310k accepted, but the house has been valued (only by estate agents) at £320-330k. Would this discount count as a Genuine Bargain Price or Concessionary Discount and therefore be taken into account with our LTV?

Surveyor would base the value on what you are paying for the property. An Ea's opinion is only what the property could potentially sell for, i.e. when marketing the property.