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Deal Overview
The property is a 3 bed end terrace, around 70 yrs old. It is in the New Ferry area, near Bebington on the Wirral.
The vendor wishes to rent back for three months, for which he will pay advance rent of £495pcm x3, with the option of extending if necessary. We will set this as a 6mth AST, he can leave at mth 3, if not, he can serve 1 mth notice at any time up to mth 6. After that, he has the right to extend a further 6 mth AST, providing he has paid full rent in time prior to that.
Vendor relocating with new partner. Debt levels mean the deal can't be offered at a higher BMV.
The property will require some redecoration before letting on the open market. It has a modern kitchen, double glazing and gas heating off a back boiler.
We would expect it to achieve around £495 - £525 pcm rent, although you could achieve more with an LHA tenant (see below).
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The Figures
Basic Figures:
Current Value £115,000
Your Price £86,250
Discount 25%
Cashback £0 - if taking a 75% LTV mortgage
Rentals £495 - £525 pcm
more if LHA tenant on 3 bed rate
Mortgage Examples:
The best deals are with C&G and BM Solutions, varying from 5.29% - 5.69%. For up to date rates, click HERE. C&G have free valuations i believe.
At 5.29%, this would be £380pcm mortgage, £495pcm minimum rent, leaving £115pcm cashflow positive before management and insurance. It may be possible to achieve even better cashflow with an LHA tenant.
Deal Costs
Before completion, you will need to outlay around £1,500 approximately. This covers mortgage valuation fee (around £350), mortgage broker fees (£395), legal search fees your solicitor organises on your behalf, and the deal reservation fee (£500).
After completion, you pay both solicitors fees and the no money down finance scheme fees (if needed), totalling a further another £2,500 - £3,000. The NMD finance scheme fees are £1,500 of this, the remainder being the legals.
For full details on typical costs, the ready made deal process, and terms and conditions, click the links in the sidebar to the left. |
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Property Description
Property
The property is a 3 bed postwar end terrace in decent order throughout.
The property has on-road parking although there does not appear to be any problem with parking space availability. The property is situated in a quite cul-de-sac.
The property has full UPVC double glazing, and gas central heating, fed off a back boiler behind the gas fire. Two gas fires downstairs, radiators in other rooms.
The ground floor consists of a knocked-through lounge, currently used as part dining room, part lounge. A modern kitchen, at the back of the house, appears to be a GF extension, pitched roof.
Upstairs are three decent sized bedrooms and a bathroom. Looking behind the clutter, the property is in decent order
although will require some decoration upon relet. The bathroom is
functional but will benefit from a new one in the next few years.
Photos
Click Here
Area
Situated off the New Ferry Road. There are ample local amenities and good local transport. The nearby New Ferry bypass provides a quick route to the Mersey tunnel (to Liverpool, 15-20 minutes) or to Birkenhead town centre (15 minutes). There is also a nearby shopping complex with Asda, Boots and a dozen other stores (10 mins).
There is lot of regeneration planned for the entire east coast of the Wirral, which will provide longterms benefits.
Link:
New Heartlands
Lettings
You could command around £495+ pcm for this property. The local housing allowance 3-bed rate is £575pcm, while the 2-bed rate is a still good at £495pcm.
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