White & Co Property Solutions Ltd
Date     Year
13/01    2008
 		Stoneycroft, Liverpool L11 - 4 bed, 3 reception Victorian semi-detached property, in an exclusive area.
  1. VALUED - MARKET VALUE CONFIRMED AND VALUATION CAN BE RE-TYPED IN YOUR NAME
  2. AGREED - VENDORS HAVE SIGNED AN 'OPTION CONTRACT', WHICH CAN BE ASSIGNED TO THE DEAL BUYER
  3. 20% BMV - MINIMUM - TO YOU AFTER FINDER'S FEE
  4. IDEAL FOR BUY-TO-SELL OR AS H.M.O. PROPERTY
Vendors are about to be repossessed (see below), eviction date set for end of January.  I will be going to court to request a suspension of the Eviction Warrant this week (this will be no problem).

Ref 056
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:                                          £ 240,000
Purchase Price:                                       £ 172,000
Below Market Value By:                           28.4%
Rentals *:                                                    £ 700 pcm single let/ 950pm multilet -
                                                                            but see below
Finder's Fee:                                              £ 20,000 (but see finder's fee
                                                                            schedule below)
Cashback ** at 90% / 85% LTV         £  24,000 / £ 12,000 (these figures
                                                                            are based on the 'most expensive'
                                                                            finders fee option - they may be
                                                                            even higher)
Equity ***                                                  £ 36,000                                             

Upfront Costs                          
Deal Fee:                                                      £ 1,000 (subtracted from FF - only
                                                                            relevent if you choose 'FF option 3'
                                                                            below)
Survey:                                                         £ 399
Search Fees (solicitor)                           £ 300

Finders Fee Schedule (3 options):

You have three choices of how you want to pay the finder's fee:        
  1. Pay upon valuation, i.e now (as it is already valued) - £17,000 - this gives you 21.25% BMV to you after finder's fee!
  2. Pay half-and-half (£18,00 in two instalments of £9,000 - one immediately, the other upon completion) - giving you 20.84% BMV after finder's fee!
  3. Pay upon completion - £20,000 - giving you the basic 20% BMV to you after finder's fees; figures as detailed above.
Naturally, these options are progressively better for you depending upon how much of the finder's fee you are willing to pay up front. 

Please remember the seller MUST sell, due to repossession, and has signed an assignable option contract to this effect.  You will be using my full legal and broker team for this one to ensure a swift completion.

You are guaranteed a healthy cashback on this deal, regardless of which option you take - AFTER all fees and costs are accounted for.

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 ImageAREA / PROPERTY DESCRIPTION

Click the blue underscored text to follow the links.

This property is situated in Bankfield Road, an expensive part of Stoneycroft on the eastern fringe of Liverpool (see map).

To give you an idea of the property size and layout, please look at these identical age/style properties currently on the market, on a nearby streets which are considered less desirable - one, two and three.  Some of these are five-bed. 

The only difference is that the owners of this property decided to knock one of the small 9' x 8' box bedrooms into the adjoining tiny bathroom, to form a much larger bathroom.

The property itself is nearly identically in layout and room sizes to the examples given above.  The main difference is the enlarged bathroom, which has meant this house has 'lost' an extra bedroom.  But it would be arguable what would be more attractive to a homebuyer - the much larger 4-piece bathroom, or the extra (tiny) box room?

The property is in good order throughout.  It has full double glazing and gas central heating.  The bedrooms have not been decorated for some time, and this house would be transformed by a cosmetic refurb for little cost (I can arrange that for you upon completion).  To get to the dated kitchen, you need to walk through a third reception room which has a fully-fitted bar.

One idea to make this more attractive would be to knock through this reception room into the kitchen, making a large, light and modern kicthen-diner area.  To the side of the kitchen is a utility room which is not strictly necessary also.

The front reception room has been repainted, wooden floors and beautiful fireplace - and gives a great idea of the properties' potential.

As stated, the two options for this property would be:
  1. As a buy-to-sell - cosmetic refurb and other works could easily be paid for using the cashback.  This would not strictly be necessary to do but would add to the appeal and saleability.  The raw cashback figure even on an 85% LTV mortgage would pay for mortgage and insurance costs for nearly a year.
  2. As a HMO - you could cosmetically refurb the property, spend 3k ish on furnishings, and let to young professionals for a decent rent.  Assumong the second reception rooms as a fifth bedoom - and £60 - £65 per week - thats a gross rental income of approximately £1,300 to £1408 per calendar month.  Even if left in its current state (dated but fine!), add some cheaper property, you could easily make that much money letting to Eastern Europeans also.  As its a 2-storey property, it would not need to be a Mandatory Licensed HMO.

WHY BELOW MARKET VALUE?

The vendors are going to be repossessed.  The owner was made redundant and his insurance didn't cover his mortgage payments.  Since then has got a nw job, but less wages etc.  Has been to court twice, failed his payment plan, and now an Eviction Warrant has been issued.  That can be stopped easily providing I find a buyer and sort out everything this week.  I can present this to the judge who will allow more time to complete (eviction set for 31st Jan).  I am very confident of being able to achieve this.

This is an urgent deal.  I would not be giving this up, if it were not for the fact I have far too many properties going through to completion, and cannot even keep on top of those.  In addition I will be going abroad twice in Feb.

This is a truly excellent deal for somebody - but please only declare your interest if genuinely serious.  The main reason for this is the time factor and seriousness of the vendor's predicament. 

I will offer to one person, who must make a final decision within a 24 hour period.  If they do not want it, I will offer to the next (and so on).

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




Finally


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