White & Co Property Solutions Ltd
Date     Year
05/11    2007
 		Bootle / Netherton L30, Liverpool - 3 bed end terrace - ref 035
Vendor paying two mortgages.  Amateur landlord with money crisis.  20% BMV
Photo - Arlo Greetings!

Welcome to the new-look, simplified Done Deals Alert.

Please see the last section for links to further information about this deal, and general terms and conditions.

If you wish to register your interest, or request further information, please email back.  This does not commit you to proceed with the purchase.

Kind Regards
Arlo
The Numbers
by Article Author Property Investment Image






Basic Figures
Market Value:                                          £ 120,000
Purchase Price:                                       £ 96,000
Below Market Value By:                           20%
Rentals *:                                                    £ 525 pcm (minimum estimate)
Finder's Fee:                                              £ 5,000 (see **** below)
Cashback ** at 90% / 85% LTV         £ + 12,000 / £ + 6,000
Equity ***                                                  £ 18,000

Upfront Costs                          
Deal Fee:                                                      £ 100
Survey:                                                         £ 350

After Successful Valuation
1/2 the Finders Fee:                               £ 1,500
Search Fees (solicitor)                           £ 300
There may be other fees depending upon finance arrangements

Upon Completion
Broker (typically 1%)
Bridging Finance (if applicable, varies)
Any remaining Finders Fee (see above, varies)
Purchase Solicitor (typically £900 - £1,100 inc VAT + disbursements)
Vendor's Solicitor (normally a flat £500)

Notes
All mortgages are subject to survey and the purchasers own financial standing.  Figures given are for illustrative purposes only.

* This is usually given as a conservative minimum, or if the property is already tenanted, what is currently being paid by the tenant.
** Cashback is a raw figure, not taking into account all the various deductions that are taken out upon completion - such as mortgage setup fees, broker/bridging/solicitors/finders fees, stamp duty where applicable, etc.  If the number is given in blue, this mean the deal requires CASH IN at this LTV figure (plus associated costs as mentioned).  Cashback is possible due to the unique methods of purchase we will teach you (we can get you a mortgage based on the open market value, and not the purchase price)
*** Please read above note.  The figure assumes a standard 85% LTV mortgage and does not account for fees and charges added to the loan amount, which reduces the equity proportionately.
**** I am offering a one-off discount of 25% on the Finders Fee if paid in total upon successful valuation (which would cost £3,750 - a full 'money in' 17% BMV to you).  The reason for this is to raise cash quickly for a refurb I am doing.

FINALLY - please remember we can provide you with a 'deal stacker' template (MS Excel - if you do not have Microsoft Office please contact me for an alternative).  This spreadsheet will give you a much more comprehensive financial analysis, which also allows you to play with the variables involved, and allows you to compare and contrast different mortgage products.



The Details

Terraced House ImagePROPERTY / AREA DESCRIPTION

3 bed end terrace, with small front garden and medium sized lawned back garden.  It is a typical 1940s council property kept in good order.

The property has been renovated recently and has a lovely new kitchen and bathroom newly installed.  Neutral decor throughout and new carpets / floorings.

The property is ex-local authority many years, in an area where most ex-LA properties have long been bought up.  It is on the edge of the local estate, facing private owner-occupied houses, on Park Lane (giving links easy access to several major roads). 

It is within a few minutes of several local shops and businesses, and is on a direct bus route to the city centre, Walton Hospital (10 mins) and Aintree University Hospital (7 mins), Aintree Racecourse + Train Station (5 mins), and Bootle Golf Club (3 mins) - typical car journey times given.

The vendor has kept vacant and tried to sell following a bad experience with his tenant (see below), and even when for sale has received enquiries about rental.  Local estate agents confirm good demand from working families in the area, and a property of this type in good order could fetch at least 525pcm in rent.

WHY BELOW MARKET VALUE?

The vendor used to live in this house with his family (and before then it was his parents former home I believe) but moved due to work to the Midlands.  He and his wife decided to keep it when they realised how much prices were increasing in 2003 (when they made the 2008 Capital of Culture announcement).  He is an amateur landlord, and found it dificult to self-manage from a distance.  He didn't trust / want to pay for a letting agent. 

His last tenants were very difficult to manage because they did not speak English and he had to get an interpreter for even basic things.  They also did not treat the property well and their children created lots of superficial damage.  The vendor admitted his mistake was giving the property to the first person who enquired, and it has since put him off. 

Upon vacant possession he did it up again cosmetically to attract interest in the open market, but as the market is so stagnant it has been difficult to even get a viewer (typical throughout Liverpool).  He is now at the end of his mortgage term, stuck on a painful variable rate, and other financial problems have occurred.  He is now very desperate to offload the property, as he is paying two mortgages now and is finding the situation impossible to manage.

WHAT OTHER INFO IS AVAILABLE?
  1. Photos, main - available on the Deal Updates Page - link below
  2. Photos, full - can be sent by email
  3. Room dimensions / descriptions
  4. Deal Stacker with financial projections



Finally

Updates on all our current deals:

Deal Updates Page

Disclaimer:

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. 

Terms & Conditions:

By replying this email, or emailing back with the deal / lead reference number, you acknowledge and agree to the Terms and Conditions should you be chosen to purchase this lead and you then agree to proceed.  Please note 'stating an interest' or requesting further information does not commit you to anything. 

Terms and Conditions Page
 
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