Liverpool L11 - repossession, longterm rentback

White & Co Property Solutions Ltd

Date Year
11/03 2008

Liverpool, 3 bed semi - repossession, longterm rentback - 16.4% BMV to you

Valued
Searches started
3 bed semi - potential for forced capital appreciation
Quiet location, popular rental area

The vendor is a middle aged single mother whose children have all moved out.

The vendor purchased the property in 2000 when it had been sold cheap due to fire damage. The vendor had remortgaged to pay for workms to the property, and recently a secured loan. Recent ill health has forced her to miss payments, and the secured lender filed for possession.

The vendor has been forced to sell due to financial circumstances, and because repossession proceedings can be proved, she will be able to claim LHA should this prove necessary (although she is looking for work and her adult working children could act as guarantors).

Due to changeover from Housing Benefit to Local Housing Allowance, and the way rents are assessed, this is expected to cover all the rent and not require a 'top-up'.

This is currently suspended subject to the sale going through, which is in my name. I did this obviosuly to buy time for a new purchaser to come in.

Ref 062

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Kind Regards
Arlo

The Numbers

by Article Author		Basic Figures Market Value: Ł 110,000 (already RICS valued) Your Price: Ł 92,000 (including FF) Below Market Value By: 16.4% Rentals : Ł 500 pcm (rental valuation)* Total BMV to you after Finder's Fee: 16.4%. That's up to Ł1,500 ish cashback to help with fees. You will need a total of around Ł2,250 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 1 and 2 payable directly to me via PayPal or bank transfer within 24 hours of your acceptance to take on the deal. 3 is payable to the solicitor, unless otherwise stated above. 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 the edge of Norris Green in an area called Broadway, on the eastern edge of Liverpool city centre. Click here for a location map. The property itself is a 3-bed semi, ex-local authority, of 1950s construction. The surrounding streets and roads, from land reg data, appear to be mainly owner-occupied, with very social landlord properties. The property was bought around 2000, after it was damaged by a serious fire, and the current owner undertook the renovation works. As such it has benefitted by modern plumbing and electrics, roof, etc. The current owner has several adult children who have their own families and seem to visit all day every day. The property has not been maintained cosmetically very well, and the kitchen needs modernising (if and when) the rentback tenant leaves. Because of this, and market conditions, the visiting surveyor was very negative about the property and valued it at 110k. He even refused to accept my comparables when I argued for a higher valuation. The ceiling price for the same age/size/type of property in the immediate vacinity is around 135k. I think when the market conditions improve, and a more favourable (fair!) surveyor calls - there is the potential for a much better rent and price valuation. I have a property of a similar type nearby and am achieving 550pcm for it. Internally, little to tell, 2 reception rooms, three bedrooms. Externally - private back garden (quite small), and offroad parking to the front and side. As a medium term buy this has more potential than some other deals with 20% BMV. WHY BELOW MARKET VALUE? The vendor is being repossessed. This has been halted as I have said I will purchase it in court. A new buyer simply takes over with my team wherre I left off. The vendor can afford the agreed rent of Ł474 per calendar month, payable in advance, the first payment on the day of completion. There will be no security deposit. Due to time constraints, I will be offering this deal before Weds evening. Please show your interest ASAP. WHAT OTHER INFO IS AVAILABLE? Photos, full - can be sent by email Deal Stacker

Finally

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