Wavertree, Liverpool L7 - 2 bed mid terr - relocation

White & Co Property Solutions Ltd

Date Year
26/09 2008

Wavertree / Kensington area, Liverpool L7 - 2 bed Victorian mid terrace property -
20% BMV to you

Short-term rentback

Excellent condition, ready to let out.

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

The vendor wishes to relocate close to her mother. She has two young kids and a partner and the house is too small for them. She is going to put in an offer on a house neighbouring her mother, so she can approach them knowing she has a sale in hand.

The vendors have been offered a shortterm rentback (see terms below).

Its offered at 20% BMV. As it is low-value and cashflows well, this will stack up for an 85% BTL mortgage.

ref 114

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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		Basic Figures Market Value: Ł 65,000 Your Price: Ł 52,000 (including FF) Below Market Value By: 20% Rentals: Ł 495 pcm to tenant on full 2 bed LHA rates, or Ł450 ish on open market. Current shortterm rentback is Ł425pcm (but see below) Mortgage Examples Different LTV mortgages examples - note that 85% + may not be possible on traditional buy to let mortgages, but other finance suggestions are included later. NB this stacks for 85% BTL. 90% LTV - let-to-buy mortgage - you could get around Ł6,500 cashback towards fees. 85% LTV - you will get Ł3,250 gross cashback - this should be completely 'no money down' after all fees. 80% LTV - you will require around Ł3,500 ish for purchase fees, but will have a better mortgage rate, and Ł13,000 in equity. Upfront Costs Reservation Deposit (to secure the deal) Ł 500 - This is fully refunded upon successful completion of the deal. This may be waived if you have previously purchased property through us and is charged to new investors only, to ensure we do not attract 'time-wasters' who may end up causing harm to our vendors. Broker fee Ł 395 Survey Ł 300 ish Search Fees (solicitor) Ł 250 TOTAL - depending on (1) above, you could pay between Ł950 - Ł1,450 during the purchase process. You may borrow the upfront costs from us - you will be charged Ł150 for this service, and the entire amount, including this fee, will be deducted from the completion amount. This is subject to terms and conditions - please contact me to discuss. Notes - 1, 2 and 3 above are only payable after you have had 24 hours to do you own due diligence and have decided to take on the deal, and you have had a successful 'decision in principle' from our brokers. 3 is an approximate figure and may change according to lender or property price range. 4 is payable to the solicitor, unless otherwise stated above, but only after successful valuation result. What is the 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 the completion funds if you choose to use our NMD finance scheme. Costs Upon Completion NMD finance - Ł1,500 Finders Fee - if you paid a reservation fee, you will be rebated this back along with the rest of the cashback. The FF is described above, and doesn't actually affect any of the figures given in this email. Legal fees - you agree to pay both purchaser and vendor legal fees which should come to around Ł1,200 total on a typical 100k house 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 - click HERE The property is a standard Victorian 2 up 2 down. The property is in a sidestreet of Spofforth Rd via Picton Rd, on the border between Wavertree and Kensington on the eastern fringe of the city centre. The whole area is part of a wider regeneration zone. Please click the following links: HERE - http://www.newheartlands.co.uk/wavertree.html HERE - http://www.edgelane.com/ and HERE - http://www.kensingtonregeneration.com/ Location map HERE There is a double extension at the back with a flat relt roof, recently refelted. The property is rendered and painted, and the roof has recently been retiled. The property has gas central heating (radiators all rooms, gas fire heated off back boiler), and full double glazing, and also has modern well finished bathroom and kitchen. The bathroom has an electric shower over the bath. The property has been rewired within the last 15 years, and a damp prooof course has just been done. There is no evidence of movement or other porblems. Very little needed except the necessary certificates. The only thing i could find is that the downstairs needs skirting boards, vendor got quote of Ł200 which means I could probably get them done for Ł120 ish. The property would attract around Ł450 for a working tenant. there are many Czech families and young couples renting in nearby houses, the rest seem to be families and older people. A more attractive option might be to get a single mum in and charge Ł495 pcm (top LHA rate for a 2 bed allowance in this postcode). The vendors need a shortterm rentback while they sort out onward purchase. The rentback is on the following terms (crucial to securing the deal): 6 month AST Right to hand in 1 weeks notice at any time Unused proportion of monthly rent to be rebated (on a day-rate) Ł0 rent for month 1 Ł425 pcm for months 2-6 Considering the value of the property, the fact it is immaculate, and the cashflow will be good on this property (11.4% gross yield - based on your purchase price, and rent of Ł495pcm) - this is a good trade off. I would imagine the vendors, anxious for more space and family support from mum, will be axious to move very quickly. I am also encouraging the move by offering our NMD finance scheme for their onward purchase. WHY BELOW MARKET VALUE? The vendor has needs more space, and wishes to have the support of her mother for her young children. Also, her childrens school is situated near her mother house. Please state interest ASAP by email.

Finally

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