Case Study –Buy-to-Let Mortgage – Concessionary Purchase

Property Value	£550,000
Loan Amount	£184,000
Location	Oxford
LTV	33%
Achieved Rate	3.69%
Completed	December 2022

The Client

Our client was in the process of receiving a partial property gift from her father and sought a mortgage to facilitate transferring funds to him, so he could redeem the existing mortgage on the property. A significant concern was the potential tax liability associated with this property transfer.

The Solution

We were able to identify a viable solution that allowed our client to acquire the property from her father without the need for any personal funds upfront. Additionally, we successfully negotiated with the lender to agree upon a concessionary purchase scenario. As a result, the recorded purchase price was set at £184,000, enabling the equity to be gifted by the client's father. Moreover, this arrangement allowed for paying stamp duty based solely on the official purchase price, while calculating the loan-to-value ratio based on the true value of the property.

The Henry Dannell Difference

Collaborating closely with the client's accountant and tax adviser, we ensured that the chosen approach was tax-efficient and offered the most favourable lending terms for our client's future financial well-being. It is important to note that we secured a highly competitive interest rate during a particularly turbulent period in the market. Even amidst the client's busy schedule dealing with other matters, we proactively acted when we learned that a very attractive rate was scheduled to be withdrawn on a Sunday without prior notice. Our swift action, going beyond standard working hours for most brokers, allowed us to secure the rate promptly, ensuring that our client did not miss out on this exceptional opportunity. Ultimately, our comprehensive and collaborative efforts resulted in a highly favourable transaction for both our client and her father. We take pride in our commitment to providing tailored and efficient solutions to meet the unique needs of each of our clients, even during challenging circumstances.