Securing a concessionary gift purchase for a client with a growing property portfolio

Wednesday March 13, 2019

Are you considering gifted equity? Or you are looking for a specialist mortgage but have some complex holdbacks? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.

Case Profile

Our client was managing a growing property portfolio in which she owned a home with her brother and a separate buy to let property which was rented out. However, she lived with her mother in the large family home.

After seeking tax planning advice coupled with the mothers mortgage term coming to an end, the decision was made that our client’s mother would gift the home in full to her daughter as part of the inheritance tax planning. This meant that stamp duty was payable on the mortgage amount outstanding on the property which amounted to £340,000.

UK regulations mean that our client would need a mortgage which considered the full value of the property, gifting property equity to the applicant, and a mortgage provided is she would only be required to pay stamp duty on the mortgage outstanding to the UK Government on the amount of £340,000. This proved too complex for some lenders, who were unable to accept the case.

As a gifted equity situation, our client has effectively replaced her mother’s mortgage and taken over ownership of the property. We therefore needed to find a lender who would consider the case as a concessionary gift purchase.

To ensure they did not fall foul of Inheritance Tax Rules, our client’s mother would be moving out of the property once she had gifted it. Her mother then intended to split her time between the UK and overseas. Our client planned to let the house out on the rental market, and therefore needed a solution which would also allow for this.


Our expert team of advisers sourced a Building Society which accepted all of the circumstances and granted a concessionary gift purchase mortgage on an interest only basis. Our client and her family have now happily proceeded with the transfer and are enjoying their new living arrangements.

Deal Highlights

Loan amount:£340,000
Rate:2.15% 5 year fixed rate Interest only
LTV:Value property £1.8million but a gift 20% LTV
APRCOverall cost for comparison 5.00% APRC representative variable
Term 25 Years
Type: (Interest Only/Repayment)Interest only
Loan purpose: (Purch/ remo)Concessionary gift purchase
Lenders arrangement fee£2,034
Early repayment charge 5 years


This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.

Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.

Overall cost for comparison 5.00% APRC representative variable based on 61 payments at a fixed rate of 2.15%, followed by 239 payments at the lenders variable rate, currently 5.99%. Because all, or part of, the mortgage is currently, or will revert to, a variable interest rate mortgage, the actual APRC could be different from this APRC and the payments could increase, if the interest rate of the loan changes.  For example, if the interest rate rose to 12.7%, the APRC could increase to 13.7%. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.

To make an enquiry call us on 020 7519 4984 or visit our website.

Return to Our Case Studies

Our insights

We are the UK’s leading specialist in delivering innovative and bespoke financing solutions to global clients.


Specialists in creating innovative and bespoke funding solutions.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home. is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Ltd is a licensed credit broker, and not a lender. Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.
Make An Enquiry

London Office (Main):


London Office (Main):

Largemortgageloans is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London