Discounts, Lenders and Disclosure

Why lenders care how you got the discount, and what to declare

Finding and proving a discount is not enough. You also have to buy it lawfully and finance it honestly, and this book explains how. A lender lends against value on condition that it knows the whole truth about the transaction: the real price, where your deposit came from, any connection to the seller and why the property is being sold for less than it is worth. Getting that disclosure wrong, even innocently, can amount to mortgage fraud under the Fraud Act 2006. The book sets out the framework in plain English, the conveyancing documents where the discount must be disclosed, the insurance and duty questions buyers overlook, and the tax traps specific to buying at a discount. It also explains how honest disclosure keeps a later refinance possible. A working checklist for every purchase and a candid account of what getting this wrong costs complete the book. Next in this series: “A Consistent BMV Pipeline”.

What’s inside

• The legal framework in plain English
• Permissions, licensing and planning
• The contracts, and what must be inside them
• Insurance, safety and your legal duties
• Tax treatment and choosing a structure
• Your compliance checklist
• Getting this wrong: what it actually costs

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.