UPDATE - Kensington, L6 - 2 bed mid terrace, ill health

White & Co Property Solutions Ltd

Date Year
10/09 2008

Liverpool, Kensington - 2 bed mid terrace - 20% BMV to you

Vendor selling due to ill health / nursing home admission

VALUATION COMPLETED
Figures confirmed as below.

The vendors are an elderly couple who have been offered a place in a nursing scheme due to wife's ill health. She is on a ventilation machine and cannot make the stairs.

The property would command Ł495pcm (LHA rate for 2 bed in this area). So good discount, completely NMD with cashback, and cashflows well.

UPDATE
This deal was a week from completion. Searches, valuation, contracts all done. Buyer was forced to pull out due to serious personal circumstances.

All that is needed is new buyer, mortgage4 offer, and complete. Its already vacant and we can even start marketing to get a tenant.

ref 106

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Kind Regards
Arlo

The Numbers

by Article Author		Basic Figures Market Value: Ł 75,000 Your Price: Ł 60,000 (including FF) Below Market Value By: 20% Rentals : Ł 495 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 a 90% let-to-buy mortgage - you could get around Ł7,500 cashback towards fees. Based on 85% LTV, you will get Ł3,750 cashback (Ł80,000 x 0.85, minus your PP Ł64,000) which will help towards fees. At 85% should be completely no money down. Based on 80% LTV, you will get Ł0 cashback, and will require around Ł3,000 for purchase fees, but will have a better mortgage rate, and Ł16,000 in equity. 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 HERE The property is in a quiet part of Kensington. Kensington is a major regeneration area, being in the path of the main eastern approach to the city centre, while just being on the outskirts of the city centre (walking distance). It is a stones throw from the Royal Liverpool University Hospital. Location map HERE To see more about the regeneration around Wavertree, Edge Lane and Kensington - click here and here. It is one of the biggest regeneration zones in the Northwest, and the area is already receiving the benefits. It is within a few minutes of a few local shops. Also medical center including dentist. There are nearby bus routes. Royal liverpool University Hospital (4 mins), Liverpool City center (5 mins). m62 (15mins).Liverpool Lime st.0.53miles, Liverpool central st.0.77 miles. The property itself has a large knocktrhough lounge diner, a small galley kitchen (modern), leading into a small back bathroom (modern) and back yard. The extension flat roof is new and is in good order. Upstairs is are two decent bedrooms. The loft is insulated. Double glazed and 2 gas fires with a modern storage heaters upstairs. With a gas safety cert this would be adequate for future tenants, or you could apply for a Warmfront grant for modern GCH. In either case we could ensure a cheap installation of a modern GCH system. The property could be relet with a minimal cosmetic upgrade. We could arrange new stairs and bedroom carpets, and white/magnolia paint job, for minimal cost, for under Ł1,000. Don't forget this will add value to your investment and ensure you get good tenants, quickly. Due to its location, the area is very popular for letting. It could command Ł495pcm to working or DSS tenants. The LHA rate for 2 bed allowance in the area is Ł495. WHY BELOW MARKET VALUE? The vendors are moving due to ill health, as above. They need to prove that they are selling the house quick, in order to keep their offer of a place. Because of this, they need to move quick and accepted the below market value offer. This is a bread and butter renter! Please reply ASAP.

Finally

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