Market Value:
£115,000.  This has been confirmed by RICS mortgage valuation and Homebuyer's Report (purchased with deal).

Purchase Price:
£96,000 agreed price.  The vendor has signed an Option contract tieing them to the sale at this price.

Other Financial Details:
Outstanding Mortgage of £82,000, Early Redemption £3,400, Secured Loans of £9,255.

Rentals: 
In the Kensington area near City Centre, for 3 bed terraces typical rent 550-595 pcm.  This property has two reception rooms and is in an area where houshare is popular (walking distance to Royal Liverpool University Hospital, two Universities, and a few bus stops to the city centre).  More rent might be achievable if a houseshare, if the extra reception was let.

Comparables:
Hometrack report estimating market value at 120k, five sold in the last six months (same type/size/within 2 streets), would suggest similar. Two for sale at £114,950 and £119,950 - both with less work done and reception knocked through into a lounge-diner.

Profit Potential

16% BMV

Market value:                 £ 96,000
Purchase price:             £ 115,000
Mortgage:                       £ 103,500 (plus set-up fees etc added to                                                 loan)

Equity:                             £ 11,500 (minus costs as above note)
Cash Back Potential:     £ 7,500 (minus purchase costs)

Mortgage Payments:    £ 453 pcm on 90% LTV at 5.25% pay rate
Rentals:                            £ 550 pcm minimum (see above)

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.   This increase your loan amount and consequently reduces the equity.

In This example you would have a positive cashflow every month, but you would need to budget for potential void periods, minor maintenance, insurance, British Gas homecare, etc per month. 

Upfront costs:

Valuation:                   
£350 ish - to compensate for the  Mortgage Valuation we have already paid for and received - this is then transferred into your name for mortgage purposes.  There may also be a survey report (which will be mentioned in the Basic Details property description above), if so add another £160.

Deal Fee:                    
£500 - fee to secure the deal - non-refundable  unless the vendor pulls out, the valuation comes in less than 160k, 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 (0.5%)                         £480 

Stamp Duty                                      0

Solicitors Fee                               £350 + vat

  Disbursements                            £300     

Valuation Fee                               £350

Vendor Solicitors Fee                     £450

Finder's Fee (2.5% inc. deal fee)     £2,400

TOTAL COSTS                                     £4,430 ish

CASH BACK  POTENTIAL                   £3,070               

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.  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 pay for the Mortgage Valuation already carried out within 2 days, and if one has not been carried out and you so desire, you must instruct  a Homebuyer's Report or Building Survey.  Please note that you can only arrange to view the property after or during the valuation visit.  Before contacting the vendor you must allow us to introduce you to the vendor.  You must then pay the 1st Part-Payment Finder's Fee (half the finder's fee quoted, minus the Deal Fee), within a further 5 working days.  Upon paying this you have agreed that you have satisfied yourself regarding facts, figures and research, confirmed that you are able to raise finance on the property, and are fully committed to completing the purchase.  You can pay by PayPal or by direct bank transfer, details of both will be given as requested.

Finder's Fee:
The only accepted reasons for refund of the 1st Part-Payment Finder's Fee is if the vendor tries to pull 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 acknowledge and agree to these terms and conditions.