White & Co Property Solutions Ltd
Date     Year
25/10   2008
 
Garston, Liverpool L19 - financial difficulties - 24% BMV to you

2 bed mid terrace

Needs modernisation of around 7k-8k, in the longterm. During the rentback period, it needs around 2k of essential repairs.  Both estimates are very conservative and it should be cheaper than this.

Rentback - £495pcm x 6 mths, to be paid in advance to the buyer upon completion (from the sale proceeds). 
  • Not valued yet
  • Vendor agreed to drop sale price if the valuation lower than expected
  • discount therefore remains the same to you
Will rent for £495pcm to DSS (LHA rate in this area).  Could rent for around £450 - £475 otherwise depending on condition.

ref 124
Photo - Arlo Greetings!

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

  1. View our deals - 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.
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  3. Purchase cost funding - for a completely NMD purchasing method - you can borrow the entire pre-completion costs of the deal (brokers, reservation fee, survey and searches) - see next section.  This service is only offered to experienced investors, or those who have bought property through us before, at our discretion.
  4. 100% 'No Money Down' financing scheme - We now have a fully compliant and comprehensive NMD financing scheme in place.

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

  1. Market Value:                                        £ 85,000
  2. Your Price:                                               £ 64,600 (including FF)
  3. Below Market Value By:                      24%
  4. Rentals:                                                       £450 - £495  see introduction


Mortgage Examples

Please note that Buy To Let mortgages are now limited to 75% Loan to value.  This means that you need to find purchase costs of up to £3,750, if the deal is 25% BMV.  There are however several ideas to consider, so please go to
CLICK HERE
For ideas on financing deals.
75% LTV -
Example rate                                  TMW at 5.99%
                         Mortgage amount                         £63,750
                         Mortgage Payment (pcm)          £318-00
                         Gross cashflow (pcm)                  £177-00 max    to    £132-00 min                               Day one equity  (25%)                 £21,250
                         Cashback (+) or cash in (-)         - £850-00 needed towards fees
       
Upfront Costs                          
  1. Reservation Deposit (to secure the deal)        £ 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.
  2. Broker fee                                                               £ 395 
  3. Survey                                                                      £ 300 ish
  4. Search Fees (solicitor)                                     £ 250
  5. TOTAL - depending on (1) above, you could pay between £950 - £1,450 during the purchase process.
  6. You may borrow the upfront costs from us - you will be charged £150 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.
  7. 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
  1. NMD finance - £1,500
  2. 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.
  3. Legal fees - you agree to pay both purchaser and vendor legal fees which should come to around £1,200 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

Location map - click HERE

The property is near local transport links to Liverpool city centre and is within walking distance to amenities in Garston.

The property is in need of repair. 

He will pay 6 mths x £495pcm rent in advance from the sale proceeds.  After that will be entitled LHA, but expects to be working by then.

The property needs:

Essential - repairs needed during rentback - total 2k or less
  1. kitchen extension flat roof damage - needs overhauled, timbers replaced, ceiling hung etc.  Estimate 1k, probably less.
  2. front door needs replaced
  3. back yard door needs replaced
  4. fuseboard needs modernisation
After rentback - if let on open market - no more than 9k
  1. single glazed windows are adequate  - ideally need double glazing
  2. redecoration through
  3. new kitchen and bathroom
  4. needs gas central heating installation
Already done
  1. Property recently had roof repairs
  2. modern boiler, and gas central heating only in a few years
  3. electrics were checked, new RCDs etc, on card meter
The vendor wants to rentback longterm and has been forced into hard times due to wife's ill health, he strikes me as being a good bloke who has been forced into desperate measures.

Fully modernised this house would probably value up at around 105k to 110k.

WHY BELOW MARKET VALUE?


A middle aged man has been suffering for several years due to ill health of his wife.  She developed MS and his work suffered, then he gave up work to become a carer.  Now she is in a nursing home and he has been unable to get re-employed.  His arrears grew, and he is forced to sell, pay rent in advacne to buy himself time.  He lives with his 9 year old daughter and would be entitled to LHA 2 bed rate, due tot he fact he can prove he would otherwise have been homeless and repossessed (already checked with LHA local council department).

Please state interest by email.




Finally


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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. 

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