White & Co Property Solutions Ltd
Date     Year
03/01    2008
 		Croxteth, Liverpool L11 - 4 bed, 2 reception mid terrace, excellent condition.

Vendors both work in Runcorn (and have family there) and need to commute daily.  Young kids and schooling is making this very awkward, and they are looking to relocate to Runcorn.

Ref 055
Photo - Arlo Greetings!

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Please see the last section of this email 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:                                          £ 105,000
Purchase Price:                                       £ 83,000
Below Market Value By:                           21%
Rentals *:                                                    £ 780 pcm multilet / 550pm single let
Finder's Fee:                                              £ 5,750 (BUT see **** below)
Cashback ** at 90% / 85% LTV         £  5,500 / £ 250
Equity ***                                                  £ 15,750

Upfront Costs                          
Deal Fee:                                                      £ 200
Survey:                                                         £ 299

After Successful Valuation
Finders Fee:                                               £ 5,000 if paid in full upon valuation
                                                                         OR   £5,750 in two instalments of
                                                                         £2,875 (see **** below)
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 willing to take £5,000 in one payment now, rather than £2,875 x2 payments (once upon valuation and once upon completion).  In other words if you pay all upon successful valuation, then you will have a full...

16.2%  (i.e., £17,010 of the estimated Market Value)

...in the deal to you, after finders fees have been paid. 

Please note the cashback and equity figures above assume a finders fee of £5,750 - so these figures will be £750 better for you if you pay the full FF upon valuation at the discounted cost of £5,000.

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 ImageAREA / PROPERTY DESCRIPTION

This spacious 4-bed mid-terrace is within a few minutes of local shops, a retail park and a supermarket.  There are nearby bus routes.  It is also very close to a major road (East Lancs Rd dual carriageway).  Across the dual carriageway is a large industrial park with warehousing, car showrooms, etc.  Click here for a google map link (click on the link for satellite view).

Aintree University Hospital (4 mins), Croxteth Country Park (4 mins), and the M57 motorway (1 min) - average car journey times.

The property itself is situated towards the back of a small local authority housing estate, which is primarily owner occupied.

This part of the estate is more settled and has a mix of newbuild private housing, housing association-built bungalows for OAPs/disabled, and larger terraced 70s housing.  The front of the property has a small front yard area, leading onto a small cul-de-sac with ample parking.  The rear of the property edges onto a quiet lane, with playing fields opposite.  A secure gate leads onto a well-developed back garden with secure parking space and an outside tool shed.

The property has full gas central heating, modern stylish gas fire, and double glazing throughout.  Both the kitchen and bathroom are modern and attractive.

Ground floor - front door leading through to a dining room, which leads into the main lounge.  The kitchen can be accessed from the lounge and the hallway.  The decor is modern throughout.

Upstairs - three double bedrooms and a smaller single bedroom.  Modern bathroom and separate WC.

Finally - one plan would be to let this property to 4+ Poles/Eastern Europeans.  Many work in the nearby industrial estate and commute in.  The ample nearby facilities (supermarkets, retail park, bus links) would make this attractive for a shared house. Fully occupied as a shared house, you could expect £45 - £55 per room per week.  Worked out on a fully let basis this equates to £780 - £953.  Allowing for voids, additional wear-and-tear, and normal expenses this will pull in a very attractive positive cashflow.  You would however need to spend around £2,500+ furnishing the property adequately.

There is very little needed (if anything) to get this property to a standard for relet.

WHY BELOW MARKET VALUE?

The vendors both work in Runcorn which is over an hours drive, or more during rush hour.  Their young kids need creche and school, which complicates the daily commute further.  They also have family support in runcorn, and are desperate to move for the both family support and due to the commute difficulties. 

They appreciate that property is very slow at the moment, and are both keen to start househunting in Runcorn.

WHAT OTHER INFO IS AVAILABLE?
  1. Photos, full - can be sent by email
  2. Deal Stacker




Finally


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