White & Co Property Solutions Ltd
Date     Year
11/11   2008
 
Old Swan, Liverpool L13 - death in the family - 27% BMV to you

3 bed 2 reception Victorian mid terrace in very popular location

Needs a refurb before letting - around 8k.
  • Not valued yet
  • Vendor agreed to drop sale price if the valuation lower than expected
  • discount therefore remains the same to you
I think this property will let around £525 to a working person.  If let to a benefit claimant, you could get £525pcm as this is the 3-bed Local Housing Allowance  (LHA).

It could also let as a 4 bed due to the extra reception - you could charge £725pcm to a family with a 4 bed LHA entitlement.

(check HERE for details)

ref 128
Photo - Arlo Greetings!

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  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:                                        £ 115,000
  2. Your Price:                                               £ 83,950 (including FF)
  3. Below Market Value By:                      27%- increased from 25%
  4. Rentals:                                                       £525+ - see introduction


Mortgage Examples

Please note that Buy To Let mortgages are mostly 75% Loan to value. 

We do have a few options at 85% LTV now, but they are only likely to go through if the buyer has a steady employment with decent income (self-employed likely to fail), and does not have too many properties (under 10 for example).  NB - this particularly deal is unlikely to stack up for 85% on a BTL mortgage.  The best bet for maximum borrowings on this property would be purchasing on a let-to-buy (residential mortgage) - click here for financing ideas

75% LTV
Mortgage £86,250
Cashback before costs £2,300
Day one equity £28,750
       
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 - HERE
One of the roads leading off Florentine Rd.

The area is a popular residential area.  Old Swan has supermarkets, a large Tescos, and all local amenities close to hand.  As such rental properties here let quickly.

This particular street is mainly owner occupied with some private rental.

The property is in need of some modernisation work before relet.  It needs a new kitchen, preferably a new bathroom (not essential), and carpetting and redecoration throughout.  It aslo needs central heating.  It has however been rewired some years back and this is one less worry.

Despite the large discount this property will need some cash tied up in it due to the upgrade work.  We can refer you to our local trades contacts wo=ho can get the work done for minimal cost - all in all about 8k will be needed as a rough estmate.

If you are able to do a residential mortgage (see HERE) - or can get the refurb costs and don't mind putting them into the property - then this will prove to be a very sound investment due to its size and location.

WHY BELOW MARKET VALUE?

This is another probate sale, probate now sorted out and price was agreed with the three relatives involved.

Please state interest by email.



Finally


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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.      

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