Help with Concessionary Mortgage

olaf2014

Has anyone every done a Concessionary Mortgage please.

Bit of info

Landlord has decided to sell the house we live in the house is worth 200k but he wants to sell it to us for 160k we have been told this would be classed as a Concessionary Mortgage. Iv missed 3 payments on 2 cats and 1 cred card (I had a baby and been in and out of hospital so.it completely slipped my mind yes stupid I no) I'm going to catch up with all payments this month when I get paid. But for the last 6 years or so we have never been late with any payments (don't think they would take that in to consideration tho)

Me and my husband have been to 2 mortgage brokers 1 said they don't deal with Concessionary Mortgage and passed us to someone else that does and they said they can't help us unless we had a 16k deposit as well (no way can we get hold of this) what else can we do?

The landlord is desperate to sell the house it's not on the market yet as he wants us to have it. We have started to look at rented houses but they are too expensive. I'm completely lost in what to do.

Any advice?

theartfullodger

Try some other brokers AFTER you have paid off any outstanding missed payments.

Suspect HMRC will assess sale (for landlord, who will likely be liable for CGT - capital gains tax) at market value, £200k. They have the power to do so ...

JM68

I assume you were advised you need to find 16k to be able to get a 90% LTV mortgage for a 160k purchase.

Not sure that is the only option.  In theory the discount to market value could be treated as the deposit.  

This link seems to suggest that.

https://www.habito.com/hub/article/what-is-a-concessionary-purchase-mortgage

But even if you pass credit checks and you don't need an additional cash deposit the bottom line is that you will still need to be able to qualify for the mortgage you will need i.e. have enough income.

eddddy

Maybe you could google  Concessionary Purchase Mortgage. Quite a few brokers seem to turn up in the list - you could give a few of them a call.

As mentioned in your previous thread, Nationwide offer concessionary purchase mortgages, for example.  Did your broker mention why Nationwide wasn't an option suitable for you?

Similarly TSB offer them: https://intermediary.tsb.co.uk/criteria/residential-criteria/concessionary-purchase/


It could be that the broker thinks your credit record isn't good enough for those lenders, or your income isn't high enough - but it would be good for you to know the specific reasons.

Concessionary Purchase/Genuine Bargain Price

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.

...

Acceptable scenarios

• Private tenant buying from their landlord

Lending terms

• 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%

Link: https://www.nationwide-intermediary.co.uk/lending-criteria/purchase-types

chanz4

@ACG deals with adverse

ACG

eddddy said:

Maybe you could google  Concessionary Purchase Mortgage. Quite a few brokers seem to turn up in the list - you could give a few of them a call.

As mentioned in your previous thread, Nationwide offer concessionary purchase mortgages, for example.  Did your broker mention why Nationwide wasn't an option suitable for you?

Similarly TSB offer them: https://intermediary.tsb.co.uk/criteria/residential-criteria/concessionary-purchase/


It could be that the broker thinks your credit record isn't good enough for those lenders, or your income isn't high enough - but it would be good for you to know the specific reasons.

Concessionary Purchase/Genuine Bargain Price

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.

...

Acceptable scenarios

• Private tenant buying from their landlord

Lending terms

• 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%

Link: https://www.nationwide-intermediary.co.uk/lending-criteria/purchase-types

Concessionary purchase is just one issue. 
The other is the arrears. 

ACG

Tricky one this as the adverse is minor, I think everyone has a late payment or 2 on their credit report, the issue is that yours are current and even next month will still be showing as in arrears as it can take a few weeks to show as being updated. 

Assuming you are not putting any deposit down yourself, trying to combine no deposit and adverse is quite a tough mix. 

Its one of those where I think your chances are quite slim at the minute despite the adverse being minor due to it being ongoing/very very recent but it might be worth a punt as you have nothing to lose. 

I have never known a landlord to knock £40k off the purchase price. £5-10k to avoid paying agents and any void period maybe, but £40k is 20%, thats a lot. Is there any other link to the landlord? 

olaf2014

He just wants a quick sale and due to us being in the house 6 years.

Quick update spoke to landlord today he said he's going to start speaking to a landlord agency but still wants to give us first refusal. He said someone could buy it and do a bit to let with us but I'm unsure what that is or how to do it.

Ivan just see this opportunity slipping from us and nothing we can do about it we have tried 3 mortgage brokers what else can we do.