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This Deal gives you
Two ways to structure your Purchase Finances... (Example based on 80% LTV mortgage product.)
Sample Property Purchase e.g: Valuation £100,000 (Say Rent is £475 pcm). Buy 25% BMV.
Traditional Financing Method
Fund your own Deposit & Costs.
25% BMV leaves purchase price of £75,000 ( Already £25,000 Equity)
20% (of £75k) deposit required £15,000 ( mortgage required only £60,000 means £40,000 Equity now in property...)
Broker, Valuation fee & Legals Say £2,000
You have input £17,000, have £40,000 Equity in the property and no doubt a Very High Yield of 9.5% (Based on Mortgaged Amount) .
(Borrowing only 60% of RICS). Mortgage would be approx. £262 pcm Making it £213 pcm Cash Flow Positive.
Creative Financing Method
Using one of our Funding Partners
20% of the BMV Discount Covers the deposit, leaving 5% (£5,000) Remaining Discount.
Creative Funding Partner charges are £4,000 which covers Bridge, Legals (both sides) etc. You would need to pay Our Broker £295 and Lenders Valuation Fee (approx £350). Total to come out of 5% Remaining Discount is £4,645.
This Deal Gives You: £25,000 Instant Equity, No Money In (Maybe a little Cash Back) and a Yield of 7.6% (Based on Mortgaged Amount).
Mortgage would be approx. £328 pcm making it £147 pcm Cash Flow Positive.
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