Market Value:
£100,000. A valuation has not been undertaken yet, but should eaily achieve this.  Refundable deal fee (or renegotiated price with vendor) if it does not achieve predicted value.

Purchase Price:
£85,000 this property is 15% bmv. 

Other Financial Details:
Owner has found new property and needs a quick sale

Rental Potential: 
This property will become vacant on sale. Rightmove suggests you should achieve between £450-£500 pcm.

Comparables:
2 bed appartments on hometrack have sold for 99,000 11th jan 07, 80,000 31st may 07. Home track suggests even in a weak market house prices will reach around 95% of the full asking price. This property could achieve around £103,000 on the valuation.

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:                  £ 100,000
Purchase price:              £ 85,000
Mortgage:                          £ 90,000                                          

Equity:                                  £ 10,000
Cash Back Potential:  £  5,000

Rentals:                                £ 450 - £ 500pcm (but see above)

Mortgage examples below are for illustration purposes only;  they do not constitute advice or provide a complete picture of all terms, conditions, and additional costs.  The survey results, current mortgage market changes and your own financial status could also alter the figures given.

Mortgage Examples:  

£ 441 pcm based on 90% LTV 5.89%  interest only mortgage (may or may not be possible; please discuss with my broker).

85% LTV example (a) - 5.69% interest only fixed for 2 years - £413 pcm with 5.7% yield.  Subject to minimum rental assessment of £444 pcm.  Better option if you would prefer better cashflow.  However requires cash down for fees (with £15,000 ish equity in the property). 

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.

You could choose to go with a standard 85% LTV and improve your cashflow, paying only fees to secure the property as the deposit is self-financed.  Some examples of these are given above.   Naturally, with a 90% LTV mortgage, you pay for it in terms of higher interest rates, initial fees, fees added to the loan, or other stricter /costlier terms and conditions, although the cashflow position from getting 'cash back' or cashing out both the deposit AND the fees, may be worth it depending upon your circumstances and needs.

In this example you would have a positive cashflow every month (see mortgage payment examples), 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 (based on the 90% LTV example above):

Bridge / brokers Fee                                       £ 675 + £ 675
Stamp Duty (0%)                                             £ 0
Solicitors x2 + VAT + Disbursements  (£ 750 + £ 500 for vendors solicitor)
Valuation Fee                                                  £ 350
Finder's Fee (1.3% inc. deal fee)               £ 1275

TOTAL COSTS                                            £ 4225 ish

 CASH BACK  POTENTIAL                Cashback of £ 775 after fees and costs, and £ 10,000 ish 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 eliminate your buying costs (and give you extra, in 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 Friday 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.