Do you wanna look round said the Essex man in a very heavy Essex boy accent!. No stick the kettle on and lets ave a quick natter to see how we can help I replied trying to revert to my Essex upbringing way of talking.
I had travelled to Romford to see a property that was due to be repossessed the following Tuesday at 11.00am – today was Thursday. I was there with Vanessa who had been on my buying property BMV course and was now on my help you with your first deal/s hand holding option. She laughed so you really do tell them to put the kettle on.
I had a bit of bad luck explained the Essex man put some money into something that went wrong had to sort the %*^er out. Anyway how can you help me. I explained that I could put a buy to let mortgage on his property and rent it back to him. Its worth £280k, he said what will you pay? I said it was a matter of what would stack for a buy to let mortgage valuation. We established he didn’t want an option to buy it back at a pre agreed price. He was nearing retirement age and I was concerned Housing Benefit would not pay for a 4 bed property. Fortunately he had 2 young children and was a registered carer for his brother who would also live there.
We agreed on £205,000 and then I would get a remortgage for 85% of £250k being £212,500. Rent would be £1250pm. I would do these simultaneously so I had the offer of the second mortgage before I completed on the first to double check everything stacked. This was agreed, next hurdle was to stop repossession going ahead. He visited my second solicitor and got the letter he required to take to Court. He went to Court Monday and the Judge gave him a 28 day Stay of Execution (sounds scary). We completed back to back mortgages Friday using £30k of the cash I had back in re-mortgages that week. Just under the 28 days he was given. 6 months insurance and 1 months rent added to the £4k surplus I had left making a total of £12,750. Mortgage repayments are £850pm so good cash flow of £400pm has been generated. The property would need about £12k spending on it in order to sell at £280k. However he has been telling me about all the Landlord Grants I can get to do the property up due to his brother living there.
We got his life story and how he acquired his reputation. One question I said, all these people who have upset you and you have sorted them what happens if you don’t pay me how do I go about collecting the rent off of you. Just ask me nicely he said.
He is still there today is up to date with the rent
Mortgage is £643.34 rent is £1250
Property investing with Glenn Armstrong
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