Resale Distressed / Repossessed UK Property

Resale Distressed / Repossessed UK Property

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United Kingdom,

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Prices From
£49,800£49,800 hr enquire button hr
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Details

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Fast Facts

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  • Please register your interest on this type of property or call us as most properties are only sent to the waiting list of registered clients

We specialise in sourcing carefully researched and selected high income and high discount Distressed/Repossession properties for our clients.

This is a hands-off service for our professional clients where we carry out all the sourcing, vetting and purchase process. Just register with us to join the mailing list for the next available distressed sale properties, pre-vetted for quality and letting income and in many cases, pre-tenanted.

Pre-Repossession and Pre-Auction property are now available from us at substantial discounts to current list prices. These include houses and apartments across the whole of the UK. Due to many of the properties being older than 6 months to 12 months old, mortgage finance is relatively easy to obtain.

We have spent the last few months building up a reliable supply of high quality and carefully selected distressed property sales for our clients that offer excellent discounts, free equity, simpler mortgages than new build and high yields, meaning in many cases these properties are cash neutral or cash positive in year one.

We progress the entire transaction for you including the offer, finance, legals etc.

  • Our distressed vendors may be:
  • Private vendors in a chain,emigrating,separating
  • Distressed developers looking for a quick but confidential sale - forced by their bank
  • Pre-auction repossessed property
  • Bank repossessions
  • Property on pre repossession order lists (prior to final court order)

Typical bargain property puchase example:

  • Discount: 23% discount to current list price
  • Property: 2-bed apartment with en suite
  • Location: Liverpool city centre
  • Reason for sale: Bank repossession (build complete)
  • Developer list price: 104,950
  • Price to investor: 87,495
  • Valuation rent: 600 pcm

Based on around 60% LTV on an interest rate of 3.99% this would make the property cash positive by 338.25 p.c.m. (after service charges, ground rent and mortgage costs). That is over 4,000 per annum cash positive AND you have a safe amount of equity within the property

This apartment is next to a large Liverpool University campus and the Royal Liverpool Hospital, ensuring high rental demand.

A typical London repossessed property was purchased for 225,000. The homeowner defaulted on their payments and the lender has taken action. In some cases the property requires work and the price must reflect this. To encourage a smooth and fast sale the property is often advertised at a reduced price for quick sale.

The example (real) property above was advertised for 167,950 by the agent and following extensive research to validate the quality of the property, our offer of 152,000 was accepted.

The actual price paid by the investor was 152,000 versus 197,000 (current valuation). That is a 23% discount to current list price, for a quality property in London that requires no work.

Before offers are placed we establish the achievable rent in writing from an independent letting agent and we are typically seeing 7% to 12% gross yields. This ensures that not only have we sourced you a large discounted property, but it will be cash positive by a large amount as seen by the worked example above.

Lower risk

Buying discounted investments can be one of the most effective ways to protect yourself against investment risk, just consider:

  • The market would have to drop by a significant amount for you to begin to lose money.
  • Properties are in excellent rental locations, meaning voids are usually minimal.
  • You are not just relying on the future capital growth, but rather building upon the equity already gained on purchase.
  • If you choose to sell your investment you could still sell at a price below the Open Market Value (OMV) making profit and still make the property attractive to buyers.

Do you have a very specific type of property or location you are looking for?

We offer a bespoke distressed sourcing service, ideal for our more serious professional investors. An upfront 250 + VAT sourcing fee is required which is refundable should property not be sourced within 60 days. A further 2% + VAT (of the property purchase price) would be payable once a suitable property has been sourced.

If it is the bespoke service you are enquiring about start the enquiry with "Bespoke".

 

 

 

Photos

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  • Please register your interest on this type of property or call us as most properties are only sent to the waiting list of registered clients

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