White & Co Property Solutions Ltd
Date     Year
25/10   2008
 
West Derby, Liverpool L12 - distressed landlord sale - 26% BMV to you

3 bed ex private rental property, in need of modernisation.  Needs around 7k to 10k to get to top standard (value then around 100k).

Lettable area - local housing allowance rates are £525pcm for a three bed.
  • Not valued yet
  • Vendor agreed to drop sale price if the valuation lower than expected
  • discount therefore remains the same to you
Would let for £525 pcm to working tenants.  LHA 3 bed rate here is £525 pcm.

ref 125
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:                                               £ 62,900 (including FF)
  3. Below Market Value By:                      26%
  4. Rentals:                                                       £525  - 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)                  £207-00 ish
                         Day one equity  (25%)                 £21,250
                         Cashback (+) or cash in (-)          + £850 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 - will have these by wednesday of next week - access issues

Location map HERE

The location, on the edge of West Derby golf club, is attractive.  It is just of a main thoroughfare, Princess Drive, which gives it convenient access to West Derby village and to the city centre.  There are local amenities nearby such as a post office and shops.

The property is not so attractive.  It needs refurbed - neew kitchen, bathroom, redecoration throughout - apart from that, it is a sturdy house which will let out easily once done up.

The property is vacant as the vendor has been trying to sell.

WHY BELOW MARKET VALUE?

The vendor is a distressed landlord whose main business was buying and doing up properties then flipping on the open market.  He lives in North Lancs, and so wants to get rid of this property, as it has become a thorn in his side.  He is willing toaccept the low offer due to fact he needs to raise cash urgently. 

Please state interest by email.



Finally


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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
 
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