Family transaction or gifted equity
A sale between connected parties where part of the market value may effectively form the buyer's contribution.
Discounted property purchase finance
Below market value bridging loans
Find lenders that may consider the purchase price, current market value and reason for the discount. DealFunder captures all three before creating a shortlist.
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Two different figures
Purchase price and market value are not interchangeable
A buyer may pay £90,000 for a property worth £140,000. The £90,000 is the contractual purchase price. The £140,000 is the claimed current market value.
DealFunder asks for both figures and the reason for the discount. Lenders can then be assessed using their own below market value criteria rather than treating the transaction as a standard purchase.
Why a property may be discounted
Common below market value transactions
Existing tenant purchase
A tenant buying from the landlord at an agreed discount to the current market value.
Distressed or motivated vendor
A seller accepting a reduced price because speed or certainty matters more than achieving the full market value.
Repossession or receiver sale
A transaction controlled by a lender, receiver or insolvency practitioner with its own sale process.
Property condition
A discount reflecting disrepair, incomplete work or issues that require investment after completion.
Off market agreement
A privately negotiated purchase completed without a full open market sales campaign.
Evidence lenders may request
Support the value and the discount
A valuation alone may not answer every question. The lender may also examine the sale history, relationship between buyer and seller and how the price was agreed.
- Purchase contract
- Independent valuation
- Sale history
- Relationship between parties
- Reason for the discount
- Works schedule where relevant
Important distinction
A discount does not guarantee a larger loan
Each lender decides whether leverage is calculated against the purchase price, market value or another valuation basis. The buyer may still need to provide cash or additional security.
Start a free lender search →Common questions
BMV property finance
What is a below market value purchase?+
It is a property purchase where the agreed price is lower than the current market value. The lender will normally require evidence supporting both figures and the reason for the discount.
Will a lender use the purchase price or market value?+
Lenders use different rules. Some calculate leverage against the lower purchase price while others may consider market value in acceptable circumstances. The valuation and transaction history remain important.
Can the discount replace my cash deposit?+
Sometimes a lender may recognise part of the discount as equity but this is not automatic. The relationship between the parties, valuation, purchase structure and lender criteria determine the contribution required.
Why must I explain the discount?+
The explanation helps the lender understand whether the transaction is genuine, sustainable and acceptable under its policy. A family sale is assessed differently from a distressed or recently resold property.
Can I fund refurbishment as part of the transaction?+
Yes, some lenders can include eligible works. Provide the purchase price, current value, refurbishment costs and expected value after works.
Does DealFunder recognise BMV wording?+
Yes. The search recognises BMV, below market value, under market value, undervalue, discounted purchase and similar wording then asks for both the price and value.
Buying at a discount?