White & Co Property Solutions Ltd
Date     Year
21/11    2007
 		Croxteth L11, Liverpool - newbuild 3 bed semi-detached x2 properties - ref 038 and 039
The builder has run into financial probs on a new project; needs to sell these to release cash.  Genuinely 15% 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:                                          £ 152,000 
                                                                           CONFIRMED BY VALUATION
Purchase Price:                                       £ 129,000 but see below
Below Market Value By:                           15%
Rentals *:                                                    £ 625 pcm (minimum estimate)
Finder's Fee:                                              £ 1,900 / 1.5%
Cashback ** at 85% LTV                      £ 0
Equity *** at 85% LTV                          £ 22,800

90% not advisable due to rental figures; but at 85% LTV you could get this 'deposit paid' - you would need money for all associated buying costs.  Your equity would be be just under 23K from day of completion. 

Upfront Costs                          
Deal Fee:                                                      £ 100
Survey:                                                         £ 350

After Successful Valuation
1/2 the Finders Fee:                               £ 950
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.

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

Two spacious newbuild 3 bed semi detached properties, with parking and medium sized lawned back garden.  The properties have just completed and have not had previous owners.  They have offroad parking for one car.  The properties lie on the edge of the popular Croxteth Country Park housing estate.  This is the 'middle class' part of Croxteth and is popular with working families.  It is mainly owner occupied but there is a clear market for private rental as the area is seen as highly desirable.

Upstairs, three generously propertioned bedrooms and a family bathroom.

Downstairs, there are two reception rooms, large kitchen, toilet, and a separate storage/utility room.

The property has all the 10-year NHBC approved certificates (covering the building ,electrics, GCH and DG windows).

The property is situated on a main road next to a housing development, facing the East Lancs Rd dual carriageway.   Most of the immediate 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.  Also nearby medical center including dentist.  There are nearby bus routes.  Aintree University Hospital (4 mins), Croxteth Country Park (2 mins), and the M57 motorway (1 min) - average car journey times.

These properties are ready for rent.  Fully fitted kitchens to a high standard.  2 more properties built 150yds away rent for £600 pcm (but will be increased upon next tenancy renewal).  Pictures of the properties can be seen by request.

Please note:  the properties have valuations already done, so just have to be re written to your name. 

WHY BELOW MARKET VALUE?

The vendor has started another building project and his budget has overran, and so he has agreed to let these go cheap to fund his next development.  I think if he was patient he would probably achieve around full market value for these properties.  Because he hasnt the time to sit and wait for the market to become bouyant again, he has decided to sell for 15% bmv. 

New build houses are not common with discounts - unlike new build appartments which are two-a -penny and can be found in most developments with discount.   Many newbuild discounts are inflated (both rentals and OMV) by developers in cahoots with surveyors, and are not 'true' discounts.  However we have obtained these valuations independently before deciding to present them to the investor list. 

There is every possibility you could do these as a short-let (6 month AST), and resell at massive profit during the hype and buzz of the Euro Capital of Culture year, when the housing market is bound to get another shot in the arm!

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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