Down valuations are killing some property deals. Although property prices are at a record high, this isn’t being shown on RICs valuations. This isn’t the fault of the banks or the valuers. Some asking prices just can’t be justified in bricks and mortar value. If you look at August alone, then house prices raised by 13.6% in the past year. Open market values are staggering when compared to comparable properties sold in the last two years.
However, fear not, we have a solution to the ongoing battle between valuations. We have a bridging finance product that will give you 75% of a property’s open market valuation. In some instances, this product will cover all your buying expenses, essentially allowing you to put no money down as a deposit. Here is everything you need to know about this product and how it will benefit your next deal.
How it Works
Below is a quick example of how you can use this product to fund your next deal.
Let’s say you find an investment property for £145,000 and you negotiate a price of £130,000 with the vendor. The valuer visits the site and says that their valuation is £145,000 OMV. Now, because this purchase price is substantially lower, you will struggle to get finance that covers all your costs. The average lender is offering 75% of the purchase price, meaning you can only borrow £97,500. This means you must fund the remaining £32,500 yourself; that’s without stamp duty, legal and finance costs.
Now, let’s look at these figures with our offer.
Once you get in touch with our team, and we have spoken to our lending panel, we find you an offer of 75% of the open market value. Rather than being offered £97,500, you can now borrow £108,750. That’s over £10,000 more! That’s £10,000 towards your build costs or your next investment.
Sound interesting?
We’re currently offering a free review of any current or upcoming deals you have to tell you how much we can offer you with this exclusive product. Book your free review by clicking here.
A Real Life Example
Here is an actual example of a deal brought to us by one of our clients. Due to confidentiality, we cannot give their name or the location of the property, but the figures are 100% accurate.
The client wanted to purchase a mid-terrace house as an investment property. The open market value (OMV) was £80,000. Because the property needed some work, and because the seller was motivated, our client managed to negotiate a purchase price of £60,000.
Now, bear in mind that our lender will still secure funds on the open market value regardless of the purchase price.
Because the product is 75% of the OMV, our client was able to borrow £60,000. This mean that he’d managed to borrow the exact amount that he needed to purchase the property. His only fees were:
- Setup fees
- Lender fees- 2% set up, 1% interest per month and a 1% exit fee
- Valuations and legal costs
Get 75% of the open market value of your next deal
We have access to this product through an exclusive lender that we have built a relationship with. We know of few other brokers who can offer products even remotely close to this one. As you can see from the examples above, working with us can save you tens of thousands of pounds on your next investment.
We are happy to do a free, no-obligation consultation of any current or upcoming deals you have in your pipeline. We’ll tell you exactly how much money we can save you on your purchase, and it won’t cost you a thing. As we always say, our advice is free.
Book your free consultation today by clicking here and save tens of thousands on your next purchase.