Market Value:
£149,000 supported by recent EA valuation (on the market at this price 'reduced for a quick sale')

Purchase Price:
£119,000 and may reduce further pending results of the mortgage valuation/survey you commission

Other Financial Details:
Outstanding Mortgage of £43,000,Secured Loans of £20,000

Rentals: 
Current tenant pays £100 per week, which equates to roughly £430 per calendar month. Tenancy agreement states £435 pcm, tenant pays council rates, NIHE pays Housing Benefit but tenant 'tops up' last £65.  Perfect payment record within last 18 months.

Comparables:
8  Sold in last 12 months - Hometrack report - (3 bed-semis within 0.5 miles), average price £169,250 (highest 206k / lowest 144k)

Profit Potential

20% BMV

Market value:                 £ 149,000
Purchase price:             £ 119,000
Mortgage:                       £ 126,650

Equity:                             £ 22,350
Cash Back Potential:     £ 7,650

Mortgage Payments:    £ 550 ish on 85% LTV at 5,2% pay rate
Rentals:                            £400 - £450 pcm average 

These are not exact figures above but a good baseline to work with, also note there will be an agreement fee for the mortgage which will be added on to the loan amount and this amount varies in each case. 

In This example you would have to subsidise the mortgage by about £100 minimum per month.  The cashback upon eventually remortgaging  at 85% of market value (either via instant remortgage or after six months then remortgage), should more than cover the shortfall for a couple of years.

Upfront costs:

Valuation:                   
£350 ish - you would instruct this immediately

Deal Fee:                    
£200 - fee to secure the deal - non-refundable  unless the vendor pulls out, the valuation comes in less than 134k, or the survey highlights a major problem.

1st Part-Payment Finder's Fee: 
Half the finders's fee is payable after valuation, the 'deal fee' is credited to this amount.  If you decide to pull out once solicitors have been instructed, then this is non-refundable.  The other half is due upon completion direct from your solicitor.          

Typical Costs:

Bridge Fee (0                               £595  

Stamp Duty                                      0

Solicitors Fee                               £350 + vat

  Disbursements                            £300     

Valuation Fee                               £350

Vendor Solicitors Fee                     £450

Finder's Fee (2% including deal fee)  £2,380

TOTAL COSTS                                     £4,425

CASH BACK  POTENTIAL                   £3,225                

In other words, you could have cash back (now or in 6 months) and a 'free' property with inbuilt equity confirmed by valuation.

To Secure the Deal:

Email Your Interest:
Simply reply to the email, with the subject line: "Yes Please" and make sure you attach this email as 'incline text' or alternatively, you include the 'Ref number' of the lead in your subject line.  If you are the fastest to respond, we will inform you that you have the right to purchase the deal.  If you are unsuccesful, we will endeavour to inform you ASAP.

Pay Deal Fee:
By responding like this you commit to paying the Deal Fee within 12 hours, and to arrange a mortgage valuation (and survey if desired at this point) and view the property within 5 working days.  The reason for this is to ensure that only serious investors proceed, as if the investor is not serious there may be time to rescue the deal via another investor.

Remember we mainly deal with motivated sellers, often in dire need of help, who need speed and decisiveness in completing the deal as agreed.  This is the reason why you are getting an investment at a discount.  It harms our reputation if we cannot deliver that for them - and we certainly do not want to be responsible for worsening people's circumstances.

Valuation:
You agree to arrange and pay for the valuation within 5 working days of payment of the Deal Fee, after discussion with your broker.  Please note that you can only arrange to view the property after or during the valuation visit.  You must then pay the 1st Part-Payment Finder's Fee (half the finder's fee quoted, minus the Deal Fee), within a further 3 working days.  You can pay by PayPal or by direct bank transfer, details of both will be given as requested.

Finder's Fee:
On this occasion, we have decided a sliding Finder's Fee (FF) scale if the mortgage valuation comes in under the expected amount, as follows:

If the valuation comes in less than 144k, then FF drops 0.1% per 1k, to a minimum of 1% FF.  If valuation comes in at LESS THAN 134k, you have the option of refusing the deal and having your Deal Fee returned, or buying and accepting the 1% FF.

The only accepted reasons for refund of the 1st Part-Payment Finder's Fee is if the vendor pulls out of the sale (which needs to be confirmed in writing from the vendor's solicitor), or is uncontactable up to 21 days.  The reason for this is that it is already very late into the process and you will have had enough time and information to proceed to completion.

By replying "yes please" to this email, or emailing back with the deal / lead reference number, you agree to these terms and conditions.