This article explains how to record a concessionary purchase — where a client buys a property below its market value, typically from a family member — in a Smartr365 mortgage case.
Overview
A concessionary purchase involves a property being sold below its true market value, with the difference representing gifted equity. Smartr365 includes a dedicated field to record the percentage discount. This field only appears when specific Buyer Type and Type of Purchase combinations are selected in Mortgage Information.
Step-by-Step
Open the mortgage case and navigate to Mortgage Information.
Confirm the mortgage type is Purchase (not Remortgage).
Set Buyer Type. Select First Time Buyer or Home Mover as appropriate for the client.
Set Type of Purchase. Select the relevant purchase option (e.g. Sitting Tenant, Local Authority, or another applicable type). Once a valid Buyer Type and Type of Purchase combination is selected, the "Add Discount Against Market Value (%)" field will appear.
Enter the purchase price. In the Purchase Price field, enter the actual amount the client is paying (the discounted price).
Enter the full market value. In the Property Value / Valuation field, enter the full open-market value of the property. The difference between this and the purchase price is the gifted equity.
Enter the discount percentage in the Add Discount Against Market Value (%) field.
Record the gifted equity in the Deposit section. Add a Gifted Deposit source of funds entry for the equity gifted by the seller, specifying the donor.
Save the Mortgage Information section.
Common Issues
"Add Discount Against Market Value (%)" field is not visible: Ensure the case is set to a Purchase mortgage type, and that both Buyer Type and Type of Purchase are set. The field appears only when these conditions are met.
Not sure which lenders accept concessionary purchases: Lender eligibility criteria vary. Check via your sourcing tool before submitting an application.