Lease Option in high market growth area in Swansea!

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sold out

Lease Option in high market growth area in Swansea!

299.00

THE PROPERTY

65 Gorseinon Road, Swansea, SA4 9AE

In Penllergaer, a nice, popular suburb of Swansea. Backing onto open farmland and opposite a park. Next to a Post Office and local convenience store. Bus stop outside and M4 2 mins drive away. 3 bed semi. 2 double beds and 1 single bed. Upstairs bathroom. Very large double reception room, very large kitchen/diner, storage room. Off street parking for 2 cars. Very large garden with patio area. The property is in need of refurbishment. There is wood-rot in the front room and the flat roof needs replacing at the back. Also required is a bathroom refurb

In Brief

LO upfront Fee (£2000 to come off final purchase price) : £5000
LO Monthly fee: £197
Purchase Price (in 15 years): £125,000
Option Period: 15 years
Current Open Market Value: £ 110,000
Refurbishments required: £ 15,000
Cash Flow: £ 291

Source Fee: £ 2,997

Add To Cart

LO Entry Costs

LO upfront Fee (£2500 to come off final purchase price): £‎ 5,000
LO Monthly fee: £‎ 197
Current Open Market Value: £‎ 110,000
Option Period: 15 years
Purchase Price (in 15 years): £‎ 125,000 -£2500 off LO fee = TOTAL: £‎ 122,500

Refurbishments: £‎ 15,000
Survey: £‎ 350
Source Fee: £‎ 2,997
Bills (2 months): £‎ 0
Legals: £‎ 800

Total Investor Costs: £‎ 24,344

Refurbishments Required

  • Wood-rot repaired in the downstairs reception room
  • New bathroom
  • New Flat Roof
  • Carpets and Flooring
  • Paint and Decorate

Cash Flow Numbers

Rental income pcm : £‎ 595
Monthly option fee: £‎ 197
Letting Fees (9%): £‎ 53
MOE (9%): £‎ 53

CASH FLOW: £‎ 292

15 years income: £‎ 52,560

Exit Strategy 1: If you sell the property & execute Option

Purchase Price (anytime within 15 years): £‎ 122,500
Expected Actual Value at next property high (Bricks and Mortar): £‎ 146,250
Fees (new buyer pays all fees): £‎ 0

Profit on Sale: £‎ 23,750

Total profit made over 15 years: £‎ 76,310

Exit Strategy 2: 15-year purchase (if you buy it yourself)

Purchase Price (in 15 years): £‎ 122,500
Expected Actual Value (Bricks and Mortar): £‎ 146,250
Deposit: £‎ 30,750
Stamp: £‎ 3,690
Legals: £‎ 1,200
Total Buyers Costs: £‎ 35,640

Cash Flow @ 5% (worst case) (based on £675 rental income in 15 years): £‎ 96

Cash Flow @ 4% (most likely) (based on £675 rental income in 15 years): £‎ 187

Cash Flow @ 3% (best case) (based on £675 rental income in 15 years): £‎ 279

SMP operates in trust with its potential investors. SMP is registered with the Property Ombudsman Group. SMP prides itself on delivering BMV deals with accuracy and confidence. The sourcing fee for this deal is £2997 which is paid on completion of the sale. A £299 deposit is required to secure the deal which is refundable if the investor decides not to proceed to an agreed sale with the vendor, ie after viewing. The deposit is not refundable if the investor pulls out of the purchase after sale agreed. 
SMP takes no responsibility if deals “fall through” for matters out of our control. It is always highlighted that property investment carries an element of risk and ultimately a deal may not be successful. There for deal owners are advised to carry out their own due diligence to confirm for themselves the findings SMP present. SMP has no control of the UK property market prices and investments can be lost or profit margins shortened with the fluctuating market.