Money in Money Out in Swansea 30% BMV
Money in Money Out in Swansea 30% BMV
Requires 28 days completion!
Source my property has been working on securing this opportunity for some time. In fact, we even tried to work directly with the vendor to stop his house being repossessed. Unfortunately, it was too late for us to help and the bank had already forced possession. The property was placed on the market for a quick sale, and because we know the market, know the area and have confidence in this property, we snapped it up. This property does require an investor who has the ability to move fast and complete at the 28-day point!
Secure this deal for £297
Figures in brief
- Asking price: £75,000 (reduced to £60,000 due to repossession from the bank)
- Proposed offer: £50,000 (1st Offer) rejected
- Offer Accepted: £52,500 (2nd Offer) 28 days completion deadline
- *** Mortgageable ***
- BMV: 30.00%
Figures in detail:
Purchase price: £52,500
Stamp duty (3%): £1,575
Works budget: £10,000
RISC Survey: £500
SMP consultation fee: £2997
SMP Project Management (10%): £1000
Total in: £70,172
Estimated value on completion: £90,000 to £100,000
Refinance LTV (75%): £95,000
Maximum refinance: £71,250
Surplus (+/-): £24,822
Cash left in the deal: £0
Second Phase of development
Refurbish property: either, as:
(1) Buy to Let (BTL) or
(2) Buy to Sell (BTS)/ Flip option.
Estimated ‘Done Up Value’ (£90,000 to £100,00).
Note: For this source pack, estimated DUV value is £95,000
1. BTL option
Renting property out would see a net income = £5,900 per annum.
Gross cash flow estimated at £1,278 minimum per annum (i.e. @ 6% interest rate stress test).
Fixing mortgages for 5 years would limit any increases in monthly mortgage repayments.
Estimated Cashflow forecast
Rental income: £575 pcm
Less MOE (@10%): £57.50
Less Managment Fee (@9%): £51.75
Zoopla: £550 (range £500 to £600 pcm)
Loan To Value Figures
- Most likley: £71,250 @ 3% = £178.12 monthly mortgage - (£287.63 cash flow)
- In the Middle: £71,250 @ 4% = £237.50 monthly mortgage - (£228.25 cash flow)
- Stress Test: £71,250 @ 6% = £256.25 monthly mortage - (£109.50 cash flow)
2. Buy To Sell (Flip) option
Selling at current market price would see this property selling at between £90,000 to £100,000.
BTS: £95,000 - £70,175 = £24,825 (Profit)
Sold comparable property on the Ffordd y Brain, Swansea.
- 104 Ffordd y Brain: Sold 20/07/16 £68,000 - Current Zoopla Estimate £95,000.00
- 64 Ffordd y Brain: Sold 12/02/16 £76,000 - Current Zoopla Estimate £74,000.00
- 7 Ffordd y Brain: Sold 2016 £99,000
Agent Reviews and sold estimates:
- John Francis Estate Agents estimate up to £100,000
- Astleys Residential Agents estimate £90,000
- Fresh Up Agents estimate £110,000
- Belvoir Estate Agents estimate £115,000
- Dawsons Agents estimate £85,000
Works budget (£10,000 to £12,500)
The property is in very good condition and has been well looked after. The works required are straightforward and has enough meat to be able to complete a decent/light refurb whilst adding significant value.
1. Instal boiler.
2. Replace carpet throughout.
3. Replace kitchen units, flooring & tiling.
4. Replace bathroom units, flooring & tiling.
5. Paint and decorate throughout.
Source My Property does a great deal of due diligence in order to deliver successful deals to our clients. However, property investing does carry an element of risk, such as market dips and crashes. SMP cannot be held responsible for any fluctuations in the market or deals failing to meet expectations. Therefore, it is highly advised that any investor does their own due diligence and seeks external advice to collaborate with SMP findings.
Swansea is the second largest city of the principality of Wales and the twenty-fifth city in the United Kingdom. During its 19th-century industrial heyday, Swansea was a key centre of the copper industry earning the nickname ‘Copperopolis’
Population: 462,000 (2011 census)
Ethnicity: 97.8% White. 1.5% Asian. 0.3% Afro-Caribbean
Swansea University. Founded in 1920. Rated between 301 to 400th in Arts & Humanities (2018); and 251 to 300th World University rankings 2018.
Liberty stadium - is home to premier league club Swansea City Football and Rugby League Pro 14 Osprey Grosvenor Casino Swansea 15 - 16 High Street, Swansea, SA1 1LF. 01792 655 227 Swansea Indoor Market is Wales second largest indoor market.
Swansea Castle 8 Castle Street, Swansea, SA1 1DW.
It was founded by Henry de Beaumont in 1107 as the capture of the lordship of Gower. The castle is now a ruined and two blocks remain, through the site has been improved in 2010 for use as a public space.
Swansea Marina Lockside, Swansea, SA1 1WG.
Is located behind the Swansea barrage at the mouth of the River Tawe in Swansea, South Wales. This marina was first awarded blue flag status in June 2005.
Transport links to A483 road and local route (Bus 26). Local Schools nearby (within 15 minutes drive from the house).
Portmead Primary School,
Cheriton Crescent, Swansea, SA5 5LA. - 01792 583 549
Cadle Primary School, 29 Maes y Felin, Swansea, SA5 5DN. - 01792 584 498
Ysgol Gyfyn Gymraeg Bryn Tawe Penlan, Swansea, SA5 7BU. - 01792 560 600
Hospital/ medical centre
Fforestfach Medical Centre, 118 Ravenhill Road, Gendros, Swansea, SA5 5AA. - 01792 581 666
Currys PC World
Boots the Chemist
Marks and Spencer
Tesco Extra etc.
Places to eat/ drink
The Marqui Arms
Miller & Carter steakhouse
Ravenhill Park is within 30 minutes walk from the house.
Future investment/ developments
Swansea 2021 - UK City of culture bid Waterfront regeneration development