What Documents You Need for a Concessionary Purchase: Full Checklist

Concessionary purchases—where a property is sold below market value, often by a family member or landlord—can make buying more accessible thanks to the built-in equity created by the discount. However, these cases require clear documentation so lenders and solicitors can verify the structure of the transaction. Knowing the documents you need for a concessionary purchase helps ensure the mortgage process runs smoothly and avoids delays.

This guide provides a full checklist of typical documents requested by lenders and legal teams, with explanations of why each item is needed. This article provides general information only and does not offer regulated mortgage advice.

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Why Concessionary Purchases Require Additional Documentation

In a standard purchase, the main checks involve identity, affordability, and property suitability. With concessionary purchases, lenders must also verify:

• The relationship between buyer and seller
• The source and legitimacy of the discount
• That the discount is not repayable
• That there are no hidden incentives
• That the valuation supports the transaction

This means additional paperwork is required beyond what is used in a typical mortgage application.

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Full Checklist: Documents You Need for a Concessionary Purchase

Below is a complete breakdown of the documents commonly required by lenders, solicitors, and underwriters.

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1. Proof of Identity and Address

Accepted ID Examples

• Passport
• Driving licence
• Biometric residence permit

Proof of Address Examples

• Recent utility bills
• Council tax bill
• Bank or credit card statements

These documents support anti-money-laundering (AML) and Know Your Customer (KYC) checks.

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2. Income Documentation

Lenders must confirm affordability, even if the deposit is covered by the discount.

Employed Applicants

• Latest 3 months’ payslips
• P60
• Employment contract (if required)

Self-Employed Applicants

• SA302 tax calculations
• Tax year overviews
• Two years’ accounts (sometimes more)

Other Income Evidence

• Benefit award letters
• Pension statements
• Maintenance agreements

These help underwriters confirm stable, reliable income.

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3. Bank Statements

Most lenders require 3 months of bank statements, showing:

• Salary deposits
• Regular bills
• Subscription costs
• Financial commitments
• General spending behaviour

Bank statements help underwriters assess financial stability and verify disclosed outgoings.

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4. Property Valuation Report

For concessionary purchases, a lender valuation is essential. The valuer confirms:

• True open-market value
• That the discount is genuine
• That the property is suitable security

If the valuation comes back lower than expected, the mortgage amount may need adjusting.

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5. Sales Memorandum

Often provided by the estate agent or solicitor, it outlines:

• Buyer and seller names
• Agreed purchase price
• Any conditions of the sale

In private-family sales, solicitors generate a similar summary. It helps lenders understand the structure of the transaction.

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6. Gifted Equity / Discount Letter (Essential in Concessionary Purchases)

This is one of the most important documents you need for a concessionary purchase.

The letter usually includes:

• Seller’s name and relationship to the buyer
• Confirmation that the seller is gifting equity
• The amount of equity being gifted (i.e., the discount)
• A clear statement that no repayment is expected now or in the future
• Confirmation that the seller will not hold any stake after the sale

This document is crucial in proving that the discount is legitimate and unconditional.

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7. Proof of the Seller’s Ownership

Solicitors may ask for:

• Official Land Registry title documents
• Proof of mortgage settlement arrangements
• Evidence that the seller has the legal right to sell

This ensures there are no disputes over ownership.

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8. Source of Funds (If Buyer Is Contributing Cash)

Even if most or all of the deposit is gifted equity, buyers sometimes contribute cash for:

• Fees
• Additional deposit
• Repairs

Documents may include:

• Savings statements
• Proof of sale of assets
• Gifted cash deposit letters (separate from gifted equity)

The lender must verify all monetary contributions under AML rules.

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9. Tenancy Agreement (If Buying From a Landlord)

For landlord-to-tenant concessionary purchases, lenders may request:

• Current tenancy agreement
• Rent payment history
• Evidence of long-term occupancy

These help confirm the buyer’s relationship with the property and seller.

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10. Seller’s Solicitor Confirmation

In some cases, the lender may require confirmation from the seller’s solicitor that:

• The discount is genuine
• They are aware of the concessionary nature of the sale
• There are no side agreements
• Funds flow is legitimate

This protects the lender from undisclosed incentives or unusual arrangements.

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11. Additional Documents Depending on Lender Criteria

Some lenders may ask for:

Credit files from all three agencies

To cross-check credit behaviour.

Explanation letters

If the applicant has:

• Adverse credit
• Employment gaps
• Irregular income
• Unusual bank transactions

Mortgage statements (if remortgaging with equity transfer)

Useful in family transfers or partially gifted arrangements.

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How Lenders Use These Documents

Lenders review the documentation to confirm:

1. Affordability

Income evidence + bank statements demonstrate sustainable repayments.

2. Legitimacy of the Discount

Gifted equity letters and solicitor confirmations ensure the discount is not repayable.

3. Property Suitability

Valuation reports must support both the price and the condition of the property.

4. Buyer-Seller Relationship

Clear evidence avoids concerns around fraud or coercion.

5. Compliance With LTV Rules

The lender assesses the mortgage based on market value, not the reduced price.

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Why Missing Documents Cause Delays

Concessionary purchases are more complex than standard sales. Missing documents can lead to:

• Underwriting delays
• Lender queries
• Solicitor hold-ups
• Valuation rescheduling
• Risk of the case being declined

Providing documents early helps avoid these issues.

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Tips to Prepare Your Documents Efficiently

Although this isn’t personalised advice, buyers commonly follow these steps:

1. Collect at least 3 months of statements early

Both income and bank accounts.

2. Ensure the seller understands gifted equity requirements

Their letter must be clear, signed, and meet lender expectations.

3. Confirm all names and addresses match across documents

Even small inconsistencies can trigger verification queries.

4. Obtain a copy of the Land Registry title early

This can help speed up solicitor checks.

5. Keep digital copies organised

Lenders increasingly accept digital uploads for faster assessment.

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Summary

Knowing the documents you need for a concessionary purchase helps streamline the process and ensures lenders can assess the application accurately. The key items include ID, income evidence, bank statements, valuation reports, sales documentation, and—most importantly—gifted equity letters confirming the discount. Strong preparation helps avoid delays and gives lenders confidence in the structure of the sale.

This article provides general information only. Personalised recommendations require regulated mortgage advice.