Landlord Gifting Tenant Deposit to Buy their House

[Scarletpimpofnel]

Greetings. My tenant would like to buy their buy to let house and I am happy to sell it to them. The issue is they have little deposit. I am willing to gift them the deposit (to be deducted by the conveyancer at the point of completion).

As I understand it some lenders will not allow any gifted deposit. Some will but it must be from a close relative. Few (if any?) will allow a deposit to be gifted by a tenant's landlord.

Does anyone know of any lenders out there that will lend if a landlord gifts the deposit?

Many thanks.

[blindspot]

Try looking at concessionary purchase mortgages - designed for exactly this scenario.

[Stevemr]

I think tsb have brought out a new product for just this scenario.

[Scarletpimpofnel]

It seems concessionary purchase is the product. The TSB one requires 10% deposit. As the LL I was only planning on giving 5% deposit to the tenant so maybe this will not work.

[MattBee]

How many months of their rent is the deposit? Could you allow them to not pay rent for the relevant number of months so they can find the deposit through ‘savings’?

[Jayyy]

Or put 5% on top of the price you are happy to sell at and hope it values up on survey - which is obviously an entirely different issue altogether.

[Killer2005]

The buyer needs a broker. Usually a deposit needs to be from a direct family member and a concessionary purchase would also need to be a direct family member, so they'd need a lender able to accept such a case, or go outside usual policy to do so.