What Solicitors Check on a Family Concessionary Purchase: Full Guide

Understanding what solicitors check on a family concessionary purchase is crucial if you’re buying a home from a relative at a discount. Although these transactions are common and often straightforward, solicitors must complete additional checks to ensure the sale is legitimate, legally sound and compliant with lender requirements.

This guide explains every legal step, what documents you’ll need, why solicitors ask for certain information, and how to avoid delays during the process.

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What Is a Solicitor’s Role in a Family Concessionary Purchase?

Solicitors act for both the buyer and the lender. Their job is to ensure:

• The family relationship is genuine
• The discount is legitimate
• The price reflects a true concession
• No repayment arrangement exists
• The lender’s security is protected
• All legal obligations are met

Because concessionary purchases involve non-commercial pricing, solicitors must verify the integrity of the transaction.

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Key Checks Solicitors Complete During a Concessionary Purchase

1. Confirming the Family Relationship

Solicitors verify that the sale is between genuine family members.
They may request:

• A family declaration
• Identification documents
• Confirmation of the relationship in writing

This prevents fraud, coercion or sham transactions.

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2. Checking the Gifted Equity Arrangement

Solicitors must confirm:

• The discount is a genuine gift
• The seller does not expect repayment
• No silent loans or repayment agreements exist
• The gifted equity is unconditional

They will sign a gifted equity or concessionary purchase declaration, which lenders require before issuing the mortgage offer.

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3. Reviewing the Property Title

Solicitors check the legal title to ensure:

• The seller is the full legal owner
• No restrictions prevent the sale
• No third-party rights exist
• No boundary disputes are recorded
• No charges or debts affect the property

This ensures the buyer receives full legal ownership.

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4. Confirming Vacant Possession

Most lenders require that the seller will move out on completion.
Your solicitor checks that:

• The seller will not remain living in the property
• No tenants or lodgers will stay
• No tenancy agreements exist

This protects both you and the lender.

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5. Reviewing the Mortgage Offer and Lender Conditions

Solicitors must ensure the mortgage offer matches:

• The discounted purchase price
• The correct amount of gifted equity
• Any cash contribution (if applicable)
• All lender conditions

They also confirm that the lender understands the purchase involves a concession.

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6. Ensuring Accurate Stamp Duty Calculations

Stamp Duty is based on the discounted purchase price, not the full market value.
Your solicitor will:

• Calculate Stamp Duty based on the concession
• Confirm eligibility for any relief
• Submit the SDLT return to HMRC
• Ensure payment is made correctly

This prevents legal or financial penalties later.

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7. Checking the Property Valuation

Solicitors review the valuation to confirm:

• The market value is accurate
• The discount aligns with lender expectations
• The property is suitable security
• No major structural issues are flagged

Valuation accuracy is critical in gifted equity transactions.

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8. Anti-Money-Laundering (AML) Checks

Even though no deposit may be paid in cash, solicitors still perform AML checks to ensure:

• The buyer’s funds (if any) are legitimate
• The seller’s position complies with regulations
• No hidden financial arrangements exist

Documentation may include bank statements and identification.

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9. Reviewing the Contract and Transfer Forms

Solicitors prepare and review:

• Contract of sale
• Transfer deed (TR1 form)
• Memorandum of sale
• Completion statements
• Gifted equity documents
• Property information forms

They ensure everything correctly reflects the discounted price and family arrangement.

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10. Ensuring No Undue Influence or Pressure

Because family sales involve close relationships, solicitors must ensure both parties:

• Are acting freely
• Understand the implications
• Are not being pressured
• Have independent legal advice

Buyers and sellers must use separate solicitors for this reason.

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Why These Checks Are So Important

A concessionary purchase involves unusual pricing, which creates potential legal risks if not structured correctly. Solicitors play a central role in preventing:

• Fraud
• Repayable loans disguised as gifts
• Incorrect Stamp Duty filings
• Ownership disputes
• Future legal challenges
• Breaches of mortgage conditions

Their checks protect both the buyer and the lender.

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Common Issues Solicitors Discover in Concessionary Purchases

Some typical problems include:

• Sellers wanting repayment later
• Missing or vague documentation
• Undisclosed tenants living in the property
• Inaccurate valuation figures
• Capital Gains Tax implications for sellers
• Other family members objecting to the sale

Most of these can be resolved early with proper guidance.

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How to Speed Up the Legal Process

To help your solicitor work efficiently:

• Provide ID and paperwork promptly
• Confirm the family relationship upfront
• Have the seller prepare property documents early
• Get the valuation booked quickly
• Respond to solicitor queries without delay
• Keep communication open between all parties

Good preparation can save several weeks.

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Is a Solicitor Essential for a Family Concessionary Purchase?

Yes — absolutely. Lenders require legal verification that the discount is genuine and the transfer is legally valid.
Without a solicitor:

• The mortgage cannot complete
• Stamp Duty cannot be filed
• The gifted equity cannot be used
• Ownership cannot be transferred

A concessionary purchase is not legally possible without proper conveyancing.

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Final Thoughts

Understanding what solicitors check on a family concessionary purchase is key to completing the process smoothly. Your solicitor ensures the discount is genuine, the paperwork is watertight, and the lender’s requirements are fully met. This protects all parties and ensures the family sale proceeds safely and legally.

If you’re preparing for a concessionary purchase, we can guide you through lender requirements, documents and which solicitors are best suited for this type of transaction.