Market Value:
£130,000  This will be confirmed by a valuation,recent sales suggest there should not be a problem with valuation (you are entitled to renegotiate or request your money back if it does not reach this valuation).

Purchase Price:
£110,500 agreed price. 

Other Financial Details:
Landlord in financial difficulties, who needs to sell immediately to release funds.

Rental Potential: 
Both are not currently tenanted and should achieve a rent in the region of £550-£600 pcm. having the added advantage of secure parking spaces.

Comparables:
Neighbouring properties in the same development: 1 bed appt £100-£119k; 2bed appt between £110-£132k. These 2 appt are each 850 sqft. Rental figures on rightmove suggest you should achieve between £550-£600 pcm.

For further info please email full list of questions you would like answered and send along with your note of interest.

-  Deal analysis template (MS Excel) available.

-  Photos of nearby comparable property for sale available.

-  Photos of this property will be available shortly.

Please Note:

In order to be able to purchase with little or no money done, using a remortgage based on the Market Value and not the Purchase Price, you will need to use an experienced team of mortgage broker, bridging financier and solicitors.

If you do not have such a team, please use ours.  We charge a one-off introduction fee, after which you are then their client.

Profit Potential

15% BMV

Market value:                  £ 130,000
Purchase price:              £ 110,500
Mortgage:                           £ 110,500  (based on 85% LTV, although you can opt to go for a 90% LTV mortgage and therefore get cash back upon completion)                                   

Mortgage Payments:   £ 519 pcm based on 85% LTV on 5.64%                                                                           interest only mortgage.
Rentals:                                £ 550 pcm

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, and will alter the monthly payment amount.   This also increases your loan amount and consequently reduces the equity.

It would be possible to arrange a low fixed rate, which would improve your cashflow every month to around £50+ , but consequently cost you higher in set-up fees.

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:                    
£ 100 - fee to secure the deal - non-refundable unless the vendor pulls out, the valuation comes in less than the Open Market Value predicted above, or the survey highlights a major problem beyond already stated here.

1st Part-Payment Finder's Fee: 
Half the Finders's Fee is payable after the successful 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 / brokers Fee                                       £ 829 + £ 829
Stamp Duty (0%)                                             £ 0
Solicitors x2 + VAT + Disbursements  (£ 900 + £ 500 for vendors solicitor)
Valuation Fee                                                  £ 350
Finder's Fee (1.5% inc. deal fee)               £ 1657

TOTAL COSTS                                            £ 5065 ish

 CASH BACK  POTENTIAL                 £ 6,500 (which is reduced to £1,500 if cashback spent on fees as outlined above) + £ 13,000 equity as 'free deposit' (deposit, costs and all fees covered  depending on what mortgage you take, by the discount purchased with this deal).          

In other words, you could have cash back now which would help reduce your buying costs (as above example) and a 'free' property with inbuilt equity confirmed by valuation, which is cashflow positive monthly.

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. 

The deal will be open until Tuesday lunchtime at 12pm.  After receiving all interested bids, we will decide upon the most suitable investor to take this deal forward.  Please send all requests for further information, questions you wish to be answered, etc, during Sunday or Monday.

Pay Deal Fee:
By responding like this you commit to paying the Deal Fee within 12 hours of us accepting you as the winning bidder.  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 may 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.

No part of this email constitutes or forms part of a contract.  White & Co is not a licensed estate agency or licensed investment advisor.  White & Co is not authorised by the Financial Sevices Authority to give investment or financial advice.