Norris Green, L11 - repossession/rentback, 3 bed semi

White & Co Property Solutions Ltd

Date Year
14/06 2008

Liverpool, Norris Green L11, 3 bed semi - urgent repossession, rentback - 20% BMV to you

Not valued yet
Vendor agreed to drop sale price if the valuation lower than expected
discount therefore remains the same to you

The vendor is going to be evicted on Tuesday and called me at the last minute. We are halting the eviction on Monday and exchanging contracts in my name, and I will have the right of assignability to the new buyer.

The property is in really good nick internally. The vendor does not wish to rent back. The property will let easily due to popular location.

ref 094

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Kind Regards
Arlo

The Numbers

by Article Author		Basic Figures Market Value: Ł 120,000 Your Price: Ł 96,000 (including FF) Below Market Value By: 20% Rentals : Ł 550+ pcm single let. **** Total BMV to you after Finder's Fee: 20%. You will need to pay survey fees and a deal reservation fee upfront (below), and following successful survey you will need to pay search fees. Based on 85% LTV, you will get Ł6,000 cashback (Ł120,000 x 0.85, minus your PP Ł96,000) which will help towards fees. But see below for further finance info. Upfront Costs Deal Fee (to secure the deal) Ł 500 (subtracted from FF) Survey Ł 350 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). NB - if you use one of our recommended 'no money down' purchase methods (allowing you to base your mortgage on the market value and not on the purchase price) - then you should typically factor in aroun Ł1,500 - Ł2,000 extra to faciliate this (although you would not then require bridging fees or extra legal fees on a remortgage after completion). 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 Photos of the property can be viewed by clicking HERE. The property is situated just off Queen's Drive in Norris Green. It is on the edge of Clubmoor and Stoneycroft (L13) districts in the 'nicer' part of Norris Green. This area remains popular and is mainly owner occupied. This property is an ex-council postwar 3 bed semi-detached. It has modern GCH and UPVC double glazing. It would require very little if any work before relet. The property benefits from a good enclosed back garden, paved front area with offroad parking. Both the kitchen and bathroom are average and would not need to be replaced. The bathroom needs to be tiled but the rentback vendor wants to do this herself. For sale comparables show many properties in the Ł115,000 to Ł130,000. Most do not seem to be as large or have the same amount of outside space. It is on a quiet leafy road with a good reputation which adds further to its appeal. Comp 1 (similar property but smaller) Comp 2 (just one reception though, and less attractive) Comp 3 (nearby prop, similar condition ) There are plenty of 'sold' and 'mortgage valuation' comparables showing similar size/age/style 3 bed semis - typically Ł115,000 - Ł125,000. A separate hometrack report is available to the person who is offered the deal. Finally, the vendor wishes to rent back. My suggestion would be to only accept this if the vendor is able to get a working guarantor. The vendor sublets a room to her friend who is on benefits. A better idea might be to let her friend take the tenancy, claim housing benefit, and its up to them who pays what, or if the vendor pays the shortfall in housing benefit. I would suggest Ł550pcm would be an acceptable rent to charge. Alternatively you could get vacant possession however the vendors primary concern is to remain in the propert - she may decide to let it get repossessed if she was told she had to leave. Due to the difficulties making the rentals stack on this one, it may be an idea to get an 80% LTV mortgage, and if so you would need to account for around Ł3,500 total purchase costs. You would however then have Ł24,000 in equity. Another idea would be to get a self-cert 'let-to-buy' mortgage, available at up to 90% LTV. WHY BELOW MARKET VALUE? The vendor is being repossessed. She has taken out a secured loan which was at a crippling rate of interest, and her main mortgage has lapsed onto a standard variable rate of over 9%! She has taken a cut in income recently too. Overall her outgoings were close to Ł1,100 per month. The vendor is due for eviction on Monday afternoon. In order to stop this, constracts have been exchanged in my name with an assignability clause to the new buyer. Please note your interest ASAP.

Finally

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