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How far below value are you really buying?
Enter the market value and your purchase price to see the discount, instant equity, the equity left after buying costs, and how much of your cash a refinance pulls back out, with a DealIQ verdict on the deal.
- Discount + equity
- Refinance recycling
- DealIQ verdict
How it works
Enter the deal
Market value, price, refurb and costs.
See the equity
Discount, instant equity, equity after costs.
Get a verdict
A DealIQ PASS / CAUTION / FAIL with reasons.
What you'll see
- Your true discount to market value
- Equity remaining after SDLT, legals and refurb
- How much cash a refinance recycles
- A 0–100 DealIQ score with plain-English reasons
Indicative only. Built from published rules and the figures you enter; we do not guarantee accuracy or completeness, and this is not tax, legal or financial advice. Check with a qualified professional before relying on it. How accurate is this?
Our take
A below-market-value deal is only as good as the market value
The discount is simple arithmetic and the hard part is the value you feed into it, because an asking price, a seller’s opinion or a sourcer’s pitch is not evidence.
Test it against sold prices for similar homes from HM Land Registry’s Price Paid Data, then against a surveyor’s or agent’s valuation, and be sceptical of any figure that leans on a refurbishment you have not costed.
Investors commonly look for 15% to 25% below true value because stamp duty, legal fees and works eat into the headline discount, so judge the deal on the equity left after costs and not the sticker figure.
A remortgage to recycle your cash depends on a lender’s valuation agreeing with yours, so run an OfferCheck on the property to see what else, such as flood, planning or tenure, could weigh on that value.
Our opinion, based on the official sources named above: general guidance, not regulated advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.
Your numbers
Enter the deal
The genuine value: use sold comparables, not the asking price.
Loan you can pull against the market value after works.
Discount to market
25%
£150,000 paid vs £200,000 value
Equity after costs
£30,500
£19,500 cash left in after refinance
DealIQ
86/100
A 25.0% discount leaves £30,500 equity after costs. Strong BMV deal.
Where your cash goes
All-in cash £169,500
What this means
- SDLT includes the 5% additional-property surcharge.
- Refinance modelled at 75% LTV of the market value.
Before you commit
A BMV deal is only below value if the value is genuine. Check the property's risks (crime, flood, planning, tenure and condition) before you put cash in.
This calculator is for guidance only and does not constitute financial, tax, mortgage or investment advice. Figures are estimates, always seek professional advice and verify costs before committing to a purchase.
Below-market-value: common questions
- What counts as a good BMV discount?
- Investors typically look for 15–25% below the true market value, because buying costs (SDLT, legals, refurb) eat into the headline discount. The calculator shows your equity after those costs so you can see the real margin, not just the sticker discount.
- How does a refinance recycle my cash?
- If you buy below value and add value, you can remortgage against the higher market value. At 75% LTV a big enough discount can pull most, sometimes all, of your cash back out, leaving the equity behind. The tool models this from your refinance LTV.
- Is the market value reliable?
- A BMV deal is only below value if the market value is genuine. Use sold comparables (our Sold Prices tool) and a surveyor or agent valuation. Not the asking price or the seller’s opinion. Garbage in, garbage out.
OfferCheck
Get the full picture before you offer
Crime, flood, planning, tenure and condition on any UK property. Every figure sourced. Free snapshot, full OfferCheck Report from £4.99.