White & Co Property Solutions Ltd
Date     Year
12/03    2008
 		Liverpool L15, 3 bed mid terrace - vendor wants to sell up and move abraod - 16% BMV to you
  • Valued
  • Searches started
  • 3 bed mid terrace
  • Nice, popular middle class area, strong private rental demand with little supply
The vendor wishes to buy a caravan in Portugal, and a cheap 2-bed terrace or flat elsewhere in the city for returning home to the UK.

The house has been seriously undervalued in my opinion.  It does not need major work, but complete cosmetic renovation would add 30k+ to the property - as same type/style/age properties have sold for much more in this and neighbouring streets.

The vendor will need to rent back in the short term, £495 pcm payable in advance, with an addendum to the 6 month AST allowing him to hand in 2 wks notice at any stage, and have the unused 'portion' of the monthly rent rebated to him.

This allows him to set up his plans for move-on with both flexibility and security.

Ref 063
Photo - Arlo Greetings!

Welcome to the new-look, simplified Done Deals Alert.

You can view previous and current Done Deal Alerts by clicking here:  Archive Homepage

Please visit this site if you have recently joined our subscriber list.

You can receive Done Deal Alerts to your mobile. To sign up to our text message alert service click here:  Text Alerts

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:                                          £ 120,000 (already RICS valued)
Your Price:                                               £ 100,800 (including FF)
Below Market Value By:                           16%
Rentals *:                                                    £ 550 pcm (rental valuation)
            
Total BMV to you after Finder's Fee: 16%. 

That's up to £1,200 ish cashback to help with fees.  You will need a total of around £2,500 to purchase this property.  Considering this property is undervalued, in a very popular area, and will see considerable capital uplift from a cosmetic refurb - its a great buy.

               
Upfront Costs                          
  1. Deal Fee (to secure the deal)               £ 500 (subtracted from FF)
  2. Survey                                                          £ 299
  3. Search Fees (solicitor)                           £ 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
  1. '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. 
  2. Both the AP and FF are private and will be revealed only to the investor chosen to proceed with this deal. 
  3. The FF is payable upon completion and comes from your remortgage finance. 

Upon Completion
  1. Broker (variable)
  2. Bridging Finance (if applicable, varies, normally a flat £500)
  3. Finders Fee (any remaining, see above, varies) - minus the Deal Fee which has already been paid to secure the deal
  4. Purchase Solicitor (typically £450+, plus VAT and disbursements)
  5. Vendor's Solicitor (normally a flat £500)
On a typical £100,000 property, all the fees, should come to around £2,000 - £2,500 (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

Terraced House ImageAREA / PROPERTY DESCRIPTION


This property is situated L15 Wavertree, a popular rental area (particularly with students), which is also part of one of the largest regeneration zones in the Nortwest. 

Click here for a location map.

Click here for info on the regeneration zone.

The property is a 1962, 3 bed mid terrace in need of modernisation.  It has DG (council), and is heated by electric storage heaters. It has 2 recepiton rooms, small front garden which can be converted into offroad parking, and an enclosed rear garden of similar size to the footprint of the property.

According to the vendor at one stage last summer, Collertons and Entwistle Green (2 local estate agents), valued the property at 155k and 145k.  While I felt these were inflated, I had expect 130-135k in the survey results - and had offered a purchase price of 110k.  When the val came in low, I had to drop the offer.

The vendor took 4 weeks to get back to me, having exchausted other options.

The house is mortgage free having been an inheritance for the middle-aged owner.  It has not been modernised except for a complete rewire two years ago.  The surveyor noted no major issues, nor were any retentions placed.

The best plan would be to get quotes while the vendor rents back, and when vacant, give a complete cosmetic refurb and remortgage.  I believe it will be worth what the estate agents suggested when this work has been done.

As a medium term buy this has more potential than some other deals with 20% BMV.  This is due to being downvalued (typical of surveyors at the moment), the capital uplift from the work needed, being in a highly popular area which is also receiving regeneration money, etc.


WHY BELOW MARKET VALUE?

The vendor wants to sell up and live most or all of the year playing music in the Algarve.  he has the immediate opportunity to buy a caravan at a very cheap price, and doesn't want to lose it.  The rest of the money he wants to spend ona cheap terrace or flat, and be left with some money after that.

This should prove popular so please note your interest ASAP.


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




Finally


Past and Current Deal Archive:

Archive

Disclaimer:

No part of this email constitutes or forms part of a contract.  White & Co is not a licensed estate agency or licensed investment advisor.  White & Co is not authorised by the Financial Sevices Authority to give investment or financial advice. 

Terms & Conditions:

By replying to this email, or emailing back with the deal / lead reference number, you acknowledge and agree to the terms and conditions should you be chosen to purchase this lead and you then agree to proceed.  Please note 'stating an interest' or requesting further information does not commit you to anything.      

Terms and Conditions Page
 
Contact Information
Mobile:  07792 843389 		Join our mailing list!