White & Co Property Solutions Ltd
Date     Year
20/11    2007
 		West Derby L12, Liverpool - 3 bed extended semi-detached - ref 037
Probate sale, daughter does not live local and wants quick sale.  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:                                          £ 112,000
Purchase Price:                                       £ 140,000 but see below
Below Market Value By:                           20%
Rentals *:                                                    £ 625 pcm (minimum estimate)
Finder's Fee:                                              £ 5,600
                                                                            (but see **** reduced FF offer)
Cashback ** at 90% / 85% LTV         £ + 14,000 / £ + 7,000
Equity ***                                                  £ 21,000

Upfront Costs                          
Deal Fee:                                                      £ 100
Survey:                                                         £ 350

After Successful Valuation
1/2 the Finders Fee:                               £ 2,800
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 20% on the Finders Fee if paid in total upon successful valuation (which would cost ONLY £4,480 - a full 'money in' 17% 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

This is a large extended semi-detached property.

Externally: small front garden, mainly paved with floorbeds, off-road parking for one car, but plenty of space for other cars on the road (in a quiet cul-de-sac).  The back garden is fairly overgrown and has decked areas and a wooden shed.  The side garden, where the conservatory is situated, is mainly flagged with potted plants.

One the ground floor:  It has a medium sized front reception room, an extended knocked-through living room, a large (but dated) kitchen a good sized modern conservatory.  The front door has a small porch area.

Upstairs:  there is a fairly modern bathroom (needs some cosmetic improvement), and three decent sized bedrooms.  There is plenty of fitted cupboard space in all rooms.

The property is in need of modernisation and cosmetic refurbishment, as it appears very dated and unnattractive at present.  It ideally needs a new fitted kitchen, bathroom upgrade, carpetting/flooring throughout, and a paint job.  It is double glazed and has gas central heating (both fairly recent). The garden is a great selling feature, with a side conservatory and decked areas.  It has been allowed to become overgrown due to the families circumstances, but could be made to look very attractive without too much work.

It is estimated around 8-10k could be spent modernising the house, after which it could be worth around £155,000 or more (all figures err on side of caution).  Expected rentals could be around £650-700 pcm, although the ideal plan might be to do this one as a 'Buy to Sell'.

The daughter is arranging the sale of the property which is in probate.  They have accepted the offer of £112,000 for a quick sale.

It is within a few minutes of local shops.  There are nearby bus routes.  It is within a minutes drive of the West Derby Road (direct access to the city centre), and the Queen's Drive (allowing easy access onto motorways).  It is located in a quiet cul-de-sac which appears to contain working families and elderly.  Although the property is ex-local authority, nearly all the neighbouring houses have long since been bought up.  The area is relatively middle-class.  The property is also within 10 mins walk of Croxteth Country Park.

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.

WHY BELOW MARKET VALUE?

The reason this is going cheap is due to a family death.  Of the elderly couple who owned the place, the man died, and the woman has moved out and wants to have a fresh start.  It is the daughter who is organising the sale of the house, she lives quite a way outside of Liverpool, and my impression is she is hopeful of getting some of the proceeds and is anxious for the quick sale.  Her mother is going along with her daughters plans for a quick sale. 

The older couple who lived here obviously carried out a lot of upgrades over the years, such as a large ground floor extension, conservatory, double glazing, rewiring and gas central heating.  However, they neglected the cosmetic side of it and the overall feeling is very dated an 'grannyish' (if thats a word) - this has put off a lot of buyers from even wanting to view.

WHAT OTHER INFO IS AVAILABLE?
  1. Photos, full - can be sent by email
  2. Room dimensions / descriptions
  3. Deal Stacker with financial projections



Finally

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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. 

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