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The owner of this property responded to a leaflet that was delivered through his letterbox from our team of leafletters.
The owners had divorced some 6 years prior and only the ex-husband was living in the property. He had recently begun a relationship with a lady in Port Elizabeth in South Africa, and was interested in getting on a plane to his new life. The only thing stopping him was this house, that did not have central heating and was getting very little viewings from the estate agent, and no offers.
We took on and babysat the mortgage payments from him and agreed to give him the “cash-bit” (equity) of £10,000 in 6 years’ time. He was happy with this because it locked in the equity he would get in the future and allowed him to get on with his life straight away.
We bought it from the owners on a 6 year Option:
- The property was worth £125,000
- The mortgage on this property was £115,000
- The mortgage payments were £337.50 per month
- We sold it to a plumber and his wife who did not qualify for a mortgage because he was only recently self employed
- Market rent was £650 pcm
- They paid £850 pcm “Super Rent”
- They agreed to buy it at £140,000 in 5 years’ time
- They put down some “getting started money” of £5,000
- Seller very happy to have got rid of the property that was the only thing stopping him emigrating and starting a new life with his new partner
- Buyer very happy to have the opportunity to buy a property now (and stop wasting money on dead rent), when they know they won’t qualify for a mortgage for another 2-3 years
- I was very happy to have helped both parties and made £5,000 straight away, and £15,000+ profit in total.