St Helens, WA11 - repossession, rentback, 72k PP

White & Co Property Solutions Ltd

Date Year
10/03 2008

St.Helens, 2 bed end terrace - repossession, rentback - 15.3% BMV to you

Valued
Searches started
End plot position, back and front gardens
Good location for rental, near main bus routes

The vendor is a middle aged single mother with a teenage son. Her partner left over a year ago, and then she was made redundant, leading to a period of 6 months with no income and no mortgage protection.

She has since found employment, but at half the income. The mortgage, secured loan, and arrears payments are crippling. Repossession proceedings started, vendor able to comfortably rent back at Ł450pcm.

Ref 061

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Kind Regards
Arlo

The Numbers

by Article Author		Basic Figures Market Value: Ł 85,000 (already RICS valued) Your Price: Ł 72,000 (including FF) Below Market Value By: 15.3% Rentals : Ł 475 pcm (rental valuation)* Total BMV to you after Finder's Fee: 15.3%. That's up to Ł250 ish cashback to help with fees (this could be completely no money down to you). You will need a total of around Ł2,000 to purchase this property, which will be a cashflow-positive, ready-tenanted investment. Upfront Costs Deal Fee (to secure the deal) Ł 500 (subtracted from FF) Survey: Ł 299 Search Fees (solicitor) Ł 300 Finder's Fee 'Your Purchase Price' - see above - is calculated by adding the actual Agreed Price (AP - agreed with the vendor) to the Finder's Fee (FF) payable. Both the AP and FF are private and will be revealed only to the investor chosen to proceed with this deal. The FF is payable upon completion and comes from your remortgage finance. Upon Completion Broker (variable) Bridging Finance (if applicable, varies, normally a flat Ł500) Finders Fee (any remaining, see above, varies) - minus the Deal Fee which has already been paid to secure the deal Purchase Solicitor (typically Ł450+, plus VAT and disbursements) Vendor's Solicitor (normally a flat Ł500) On a typical Ł100,000 property, all the fees, should come to around Ł2,000 - Ł2,500 (excluding the Finder's Fee). Notes All mortgages are subject to survey and the purchasers own financial standing. Figures given are for illustrative purposes only. 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

		AREA / PROPERTY DESCRIPTION This property is situated on one of the main roads into St Helens town centre, and within easy commute of all the major urban areas such as Liverpool and Manchester. Click here for a location map. The property itself is a 2-bed 1940s end terrace, in a popular ex-local authority area where the majority of the properties are now owner-occupied or private-rented. The property benefits from having offroad parking to a gated front drive, enclosed side access to a generous rear garden with good views. Internally, the property has a knock-through living room and dining area, and a kitchen on the ground floor. It has gas central heating and is single glazed. Upstairs is a modern bathroom and two medium sized bedrooms. There is the longterm possibility of a single or double extension. The property is in aveage order, but would need cosmetic improvement and possibly a new kitchen upon eventually reletting. As it is, the current owner wishes to rent back, so this is not of any immediate conscern - and any such works would potentially improve its value and appeal. The area is a popular location with walking distance access to local amenities and public transport, near one of the major roads in St Helens. The potential rent for a 2-bed property is good, and given the purchase price should provide strong future capital growth potential and a positive cashflow. WHY BELOW MARKET VALUE? The vendor is being repossessed. This is easily halted once a buyer proceeds - as it has been valued already, both sets of solicitors instructed, and searches are started. The vendor can afford the agreed rent of Ł450-00 per calendar month, payable in advance, the first payment on the day of completion. There will be no security deposit. Previously the payments for arrears, mortgage and secure loans were around Ł1000+. The vendor wishes to rent back but does not know their longterm plans. My instinct is that this woman is hard working, gentle person, who has a combination of unfortunate circumstances, and I believe she would prove to be a good tenant. As mentioned - the separation, redundancy, long period of no income leading to large arrears, and current low-income employment - have been an unfortunate run of circumstances. Please do get in touch ASAP if interested. WHAT OTHER INFO IS AVAILABLE? Photos, full - can be sent by email Deal Stacker

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