Concessionary Purchase Mortgage

MonkeyMoney

Hi there, long time lurker, first time poster!

I have done a lot of searching, but can't find what I'm after.

We've been in our rented home for three years. Our landlords have decided to sell, and have offered us first refusal. They had a valuation done, and it came back saying the property is worth 150k. This is more or less in line with what our research tells us (including an identical neighbour's house selling for 135k six years ago).

Anyway, they are offering to sell it to us for 135k, 15k off the market value. I have found something called a Concessionary Purchase, which means we might not have to pay a deposit, as the lender would use the 15k difference as a deposit. I am a little confused, though. Does that mean our mortgage will still be for 135k, we just won't need a deposit? Or does it mean our mortgage will be for 120k?

We can raise a 5% deposit anyway, if that's easier.

What are the advantages and disadvantages of the Concessionary Purchase?

I have done a search of this site, but they all involve buying from family, which isn't the case here.

Thanks for any tips!

-monkeymoney

AnotherJoe

Never heard of it but if the lender uses the 15k difference as the deposit then you'd need a £135k mortgage. Otherwise what would be concessionary about it? it would just be like buying any house for £135k and the fact it was valued at 150k would be irrelevant.

amnblog

You can buy from your landlord using the difference between market value and purchase price as deposit but you need the right lender - 'ergo' you need the right broker.