BMV Valuation
STEP 1: Making an Offer Market Value £150,000 Market Rent £650 Mortgage Deal Comparison >> Pay Rate Rental Cover Max Loan to Value (LTV) Arrangement Fee (%) Arrangement Fee (£) Term (months) Max Loan available Deal 1 Deal 2 Deal 3 4.99% 5.34% 5.79% 100% 125% 125% 85% 85% 85% 2.50% 2.50% 2.50% £0 £0 £0 24 24 24 £127,500 £116,854 £107,772
STEP 2: Completion Price Agreed £120,000
Your BMV is….. 80.0%
Completion Costs (fixed) Survey Fee Solicitor 1 Solicitor 2 Local Searches Bridging Costs Indemnity Insurance Misc (e.g. refurbishment etc) Stamp Duty
Sub Total
£315 £450 £350 £250 0.75% £150 £0 £0
£2,415
£315 £450 £350 £250 0.75% £150 £0 £0
£2,415
£315 £450 £350 £250 0.75% £150 £0 £0
£2,415
£900
0%
Cash Back
£5,085
-£5,561
-£14,643
STEP 3: Ongoing Management (Cashflow) Rent Agreed £625 Ongoing Costs - per annum Building Insurance Landlord's Gas Safety Any Others Ongoing Costs - per month Mortgage Interest Service Charges/Ground Rent British Gas Home Care Rent Collection/Other Misc
Sub Total (costs pm)
£150 £75 £0 £543 £0 £30 £0 £592 £33
£150 £75 £0 £533 £0 £30 £0 £582 £43
£150 £75 £0 £533 £0 £30 £0 £582 £43
Cash Flow (per month)
v1.1 Author: Pankaj Shukla
For updates, visit:
http://www.bmvclub.com
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Note: You can get these figures from your mortgage broker Note: Maximum loan possible based on LTV criteria Note: Most arangement fees are charged either as a percentage of total borrowing or a fixed fee
Note: Lower of the full LTV or figure based on rental cover/pay rate is selected
Note: Investors love NMD deals, especially if they also come with some cash back
Note: The rent should ideally take care of all your outgoings on this property
Assuming maximum available loan is taken
Aim for cash neutral deals if possible. Ideal deals are cashflow positive from day one AND offer cash back on completion.