Using a Gifted Deposit from to Buy a Home with a Concessionary Purchase

Buying a property as a sitting tenant can often feel out of reach, particularly when saving a deposit while paying rent. In this case, a concessionary purchase provided a practical and cost-effective solution for both the tenant and landlord.

Craig, a landlord with a growing portfolio, was looking to sell one of his buy-to-let properties. Typically, this would involve serving notice to the tenant, facing a potential void period with no rental income, and covering ongoing costs such as mortgage payments and council tax. On top of that, estate agent fees and selling costs would reduce the overall return.

Instead, Craig offered the property directly to his tenant — creating an opportunity for a smoother transaction. The tenant was in a strong position to secure a mortgage, but like many buyers, raising a sufficient deposit remained the main barrier.

After discussions between all parties, we structured a solution that worked for both sides. By agreeing a modest discount on the purchase price, the landlord effectively provided a gifted deposit from the landlord to buy a home, boosting the tenant’s deposit position to the required 10%. This approach meant the tenant could proceed with a concessionary purchase, while the landlord still achieved a financial outcome very close to what they would have received through a traditional sale — without the delays or additional costs.

The Solution

We sourced a 90% loan-to-value concessionary purchase mortgage, with a lender willing to accept the discounted purchase price as part of the deposit structure.

The tenant contributed £9,000 in savings, which was combined with approximately £4,500 in gifted equity from the landlord. This allowed them to meet the lender’s deposit requirements and proceed with the purchase.

Remaining in the same property also offered several practical advantages. The tenant avoided the cost and disruption of moving, could keep their children in the same school catchment area, and had full confidence in the condition of the home they were buying.

The Result

The tenant secured a 5-year fixed mortgage at 4.29% with no arrangement fees, resulting in monthly repayments of £625 — approximately £50 less than the market rent for a similar property in the area.

For the landlord, the benefits were equally clear. Rental income continued right up until completion, avoiding any void period or cashflow disruption. By removing estate agent fees and minimising holding costs, the final financial position remained highly competitive.

This case highlights how a concessionary purchase can create a genuine win-win outcome — helping tenants step onto the property ladder while allowing landlords to exit efficiently and cost-effectively.

If you’re considering a similar arrangement, speaking to a broker early can help you understand what’s possible — get in touch to explore your options.