White & Co Property Solutions Ltd
Date     Year
05/11    2007
 		Croxteth L11, Liverpool - 3 bed mid terrace - ref 036
Disability issues.  See below for fuller explanation.  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:                                          £ 90,000
Purchase Price:                                       £ 72,000 but see below
Below Market Value By:                           20%
Rentals *:                                                    £ 550 pcm (minimum estimate)
Finder's Fee:                                              £ 4,000 (see **** below)
Cashback ** at 90% / 85% LTV         £ + 9,000 / £ + 4,500
Equity ***                                                  £ 13,500

Upfront Costs                          
Deal Fee:                                                      £ 100
Survey:                                                         £ 350

After Successful Valuation
1/2 the Finders Fee:                               £ 2,000
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.
**** Please note the figures above do not count the upfront cash sum of £1,500 the vendor requires.  I am offering a one-off discount of 15% on the Finders Fee if paid in total upon successful valuation (which would cost £3,400 - a full 'money in' 15% BMV to you - even after accounting for the upfront cash payment).  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

Spacious 3 bed mid terrace, with small front yard and medium sized lawned back garden.  It is a 1954 ex-council property kept in average order.  Some items of work needed before relet (all minor except a new kitchen is needed).  All the three bedrooms are generous, and there is ample room to convert the loft (as neighbours have done) and room on the landing for separate stairs.

Additionally, there are two reception rooms opened into one, and a separate storage room (the enclosed side alleyway was converted at some stage in the past).

The property has been renovated within the last few years.  It has been rewired, new cavity wall insulation, modern storage heaters, flame effect modern gas fire, upstairs largely redecorated and painted.  Neutral decor.

The property is situated in a quiet terrace at the edge of a housing development, facing the East Lancs Rd dual carriageway, across an empty grassed area.  Most of the neighbours are elderly and owner-occupiers, except one house privately rented to a young family.  Ample carparking room in the front yard/drive and on allocated spaces. 

It is within a few minutes of a few local shops.  There are nearby bus routes.  Aintree University Hospital (4 mins), Croxteth Country Park (4 mins), and the M57 motorway (1 min) - average car journey times.

Some work is needed before relet - possibly £1,800 to £3,000 (rough estimate).  This is mainly for a newly fitted small kitchen, new front door, but some decorative work need particularly downstairs.  They had began redecorating, starting upstairs, but due to ill health stopped.  Local estate agents confirm strong demand in the area, and a property of this type in good order could fetch 500 - 550pcm in rent.

Please note: three estate agents valued this at 90, 95 & 95 k. based on current condition.  It may value at 95k.  With extra work done and cosmetic appeal enhanced, it should be worth closer to 105k (supported by brief comparative analysis).

WHY BELOW MARKET VALUE?

The vendors both suffer health problems.  The husband has now given up work and is a full-time carer of his wife but has his own problems.  When they bought the house they were in relative health and undertook improvement works noted.  Over a three year period the wifes health has got progressively worse and she has been confined to living in the living room for the last 1 1/2 years. 

They have been waiting for an adapted disability bungalow, and have now (this week) moved into it.  They cannot afford the upkeep of the house when paying for the bungalow, especially as they are on benefits and carers allowance, and have dropped in income.

The main issue is a disability buggy, which they bought privately, and which needs housed at their new home.  They must get a specialised shed for this and adapt the gate for entry.  For this they require £1,500 up front.

This needs to be paid up front, and is a deal clincher.  Another cash buyer offered them a higher amount, without an upfront cash payment.  The trick is this can be given AFTER survey confirmation of value, based on an early exchange of contracts.

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 to 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
 
Contact Information
Mobile:  07792 843389 		Join our mailing list!