You are on page 1of 7

12 Year Lease Option – Walsall

2 Bedroom Terrace
Packaged Property Deals, “Leaving you time for more important things.”

Lease Option Deal - £90,408 Gross Profit

WALSALL
Financial Details
Accommodation comprises of:
Hall, Lounge, Kitchen, 2 Bedrooms, Bath, Good Condition

Structure of deal:

•Market value £110,000


•Estimated rent £550 per month (single let)
•Mortgage payments £250(including management)
•Investment required - £5,950+vat
•Legals included
•Rental profit £245 per month
•12 year lease option available

Financial details:
Investment required is £5,950+vat

•Profit (gross) example = £90,408


•Capital Growth (3%) = £ 55,128
•Rental Profit (gross) for term - £245x12x12 = £35,280
•Recommended & experienced solicitors used
•Reservation £1,000+vat
Executive Summary
0.00
Lease Option - Executive Summary
Walsall WS3
Terraced 2 Bed
Valuation £ 110,000
Discount 0.0%
Discounted price 110,000
Est. Debt on Property after Exchange £ 110,000
Assumed rent / month £ 550
Assumed rent / year £ 6,600
Yield @ current value 6.0%
Yield @ discounted price 6.0%

ii) Investment Requirement Walsall WS3


Reservation Fee £ 1,000 (+vat)
Total Cost of Deal £ 5,950 (+vat)

iii) Cash Flow Terraced 2 Bed


Debt on Property
Debt Term Type Monthly Payment Total Owed
Debt 1 0 £ 0 £ 250 £ 110,000
Debt 2 0 0 £ - £ -
other Debt 0 0 £ - £ -
Total Debt attached to property £ 250 £ 110,000
Cash from Buyer
to Vendor £ - 2000
Cash from
Vendor to Buyer £ - 0
Debt to be paid
by Vendor on
Exchange £ - 0
Debt to be paid
by Buyer on
Exchange £ 250 0.00

Total Cost £ 112,000


Debt to be cleared by buyer at purchase (lump sum) £ - 0
Debt Remaining on Property £ 110,000
Total Montly Cost £ 250
Management fee / month 10.00% £ 55
Total Costs / month £ 305
Total Costs / year £ 3,660
Rental rate / week £ 127
Rental rate/ month £ 550
Rental rate / year £ 6,600
Net cash flow / month (Assumes 100% occupancy) £ 245
Net cash flow / year (See below for occupancy variables) £ 2,940
Sales Comparable
Rental Comparable
Neighbourhood Profile

Often, many of the people who live in this sort of postcode will be low income
families living in terraced estates. These are known as type 47 in the ACORN
classification and 2.41% of the UK's population live in this type.
Neighbourhoods fitting this profile can be found throughout the country,
including in Motherwell, Knowsley, Dagenham, Hartlepool and Sunderland.
These are poor families in low-rise estates. The estates are home to nearly as
many single parents as traditional two parent families. There are many school
age children and families are larger than average. There are also some couples
whose children have left home. Housing is usually in the form of low-rise
council terraces, perhaps with three bedrooms, but still crowded for the size of
family. To be earning anything approaching an average income is rare. Long-
term unemployment is high, and employment is routine factory or manual
work. Travel is on foot or by public transport since few own a car. With money
tight, food shopping might be in Aldi or Kwik Save. Clothes might be bought at
Asda, New Look or frequently from catalogues. In common with other low
income types, the pub, betting, football pools, lottery and bingo are common
activities and entertainments. One luxury might be cable TV.
Property – Training – Wealth Creation

2 Bedroom Terrace House


Packaged Property Deals, “Leaving you time for more important things.”

12 Year Lease Option Deal

Profit Warning - £90,408 (gross)

You might also like