White & Co Property Solutions Ltd
Date     Year
15/12   2008
 
Huyton, Liverpool L36 - 2 bed end terrace - 29% BMV

2 bed 1 reception ex council end terrace
Large loft coversion would make 3rd bedroom
Needs a minor cosmetic refurb before letting.  See below also.
  • 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 £475 - £495 to a working person / family.  Let as a 2 bed house, LHA rates are £495pcm.  If the loft was tidied up and made into a 3rd bedroom, LHA rates are £525pcm.

(check HERE for details on LHA rates)

ref 132
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:                                        £ 75,000
  2. Your Price:                                               £ 53,250 (including FF)
  3. Below Market Value By:                      29%
  4. Rentals:                                                       £475 - £525 ish - see introduction

This should be completely 'no money down' upon completion.  Finance fees and the solicitors fees can come out of the 3k cashback.

There is a small refurb cost but this should be minimal and will of course add value (market val based on current condition).

Mortgage Examples

Please note that Buy To Let mortgages are mostly 75% Loan to Value.  You could get higher LTV on a 'let-to-buy'.

75% LTV
Mortgage £56,250
Cashback before costs £3,000
Day one equity £18,750
       
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
Several streets away from Longview Lane in Huyton

The area is ex council.  Many of the neighbours seem to have bought up, and this area has a high letting demand  This property is around 50 years old, kept in good order, and benefits from double glazing including external doors, gas heating, and a new roof.  Its an end terrace plot with a substantial enclosed rear garden (see photos).  There is ample onroad parking.

The property is 2 bed, but the owner has converted the loft and used it for storage.  Due to its height and size, it could be used as another bedroom.  It has sufficient lighting with proper gable end windows (not skylights).  It would require decoration and a decent flooring. Also, some of the downstairs rooms are dated cosmetically.  To get the house up to lettable standard, you would need to consider around £500 to £1,200 depending on whether or not you also want to do up the loft.  (Although very possibly it would let quite easily in current condition).  One thing that should be done is a new RCD (update the fusebox to modern trip switches) - a couple hundred quid.

I have two house in nearby streets and both let quickly. 

WHY BELOW MARKET VALUE?

The vendor bought under right to buy.  Her mum lived there and eventually rented off her her when she moved in with her boyfriend.  Now the mum needs to be hospitalized due to ill health - the daughter just wants to get shot of the place for her mortgage (hence the low price).

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. 

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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