Mortgage Availabilty Rising – Prices Still Well Below 2007 Peak

A study last month by Moneyfacts.co.uk has shown that the number of mortgages on the market is greater than 3,000 for the first time in 15 months and 42 per cent more than were on the market last July.

Recent additions that investors are to note are the introduction of a new 75% LTV product by Aldermore to compete with the likes of Birmingham Midshires, Cheltenham & Gloucester & Natwest as well as the emergence of the first 80% LTV we have seen in a while by the Mortgage Works.

Nationwide also announced today that house prices are 9.5% below their 2007 peak with transaction volumes still relatively low despite a slow return of more sellers in recent months. It is likely that the announcement of anticipated capital gains increases may prompt some landlords with more than one property to sell before tax rates go up which will shift the demand-supply balance back in favour of buyers, halting house price rises.

Buying below market value today and locking away equity is still very wise when taking the medium to long term view, particularly if buying wisely for monthly cashflow as well as growth.

SOLD – Leicester City Centre Flats 25% Below Market Value


Kitchen

Deal Summary

  • 4 Flats Available
  • 1,2 and 3 bedrooms
  • 25% Below Market Value
  • Leicester City Centre Location
  • Excellent Rental Market
  • Cashflow positive
  • New leases of 99 years


Deal Structure

The structure we have put in place enables our clients to purchase these properties at a  discount of 25%, which represents instant equity between £18,000 and £20,000. Furthermore the rental income will exceed the mortgage payments, thereby generating a monthly positive cashflow.

Here is a 2 bed example:

2 Bed Flat

Valuation:                         £75,000

Discount:                             25%

Purchase Price:                 £56,250

Instant Equity:                £18,750


Monthly Cash-flow

Rental Assessment:              £450

Mortgage  (BM 4.35%):         £204

Ground rent &Service charge £ 41

Profit                                    £205


Location

The flats are very well situated in Leicester city centre with all its amenities including shops, restaurants, bars and extensive leisure facilities. Leicester train station with direct links to London, Birmingham and Nottingham is only 400 yards away.  The M1 motorway is the gateway to London to the south as well as Nottingham, Sheffield and Leeds to the north.

The centrality and convenience of the location means there is a very buoyant rental market for these flats.


Pictures

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To obtain further information about this deal,  please contact us by

E-Mail:  Info@ventispropertyinvestment.com

Phone: 0208 940 9556