Post Offer/Bid Accepted

Estate Agents are advised to send the Contract details to our nominated Solicitors McCormicks, Leeds.

At Auction, Contracts are signed on behalf of the Client and the deposit monies paid over following which matters are then referred to our Solicitors for Completion.

In the case of Auctions it is often necessary for the investor to be able to fund both the cost of the property and refit prior to re-mortgaging unless Bridging Finance is used, as it is necessary to complete the purchase with 28 days of the auction date, which is generally not sufficient time to arrange a conventional mortgage. See Funding Options

We also advise using Bridging Finance where a fast Exchange & Completion is required when buying through an Estate Agent.

Following refit, where the property has been bought using bridging finance, the property is re-mortgaged conventionally to discharge the bridging loan.

Where the property is bought with a conventional mortgage it is also often possible to increase the mortgage following the refit.

In both cases releasing as much cash as possible from each property increases the potential spend for additional investments.

The Cash Requirement

Realistically, investors need a minimum cash sum of circa £ 30k at 75% LTV for properties bought through Estate Agents.

This sum comprises:

£ 12.5k Deposit,

£ 12k Refit & Furnishing,

£ 6k Acquisition Costs & Duties.

Purchase, Acquisition, Refit & Furnishing Costs

All the Purchase & Acquisition Costs can be handled by the conveyancing Solicitors.

The total estimated cost of Refitting & Furnishing must be deposited with us at the time of Exchange of Contacts.

The sum will be held in our Client Account at Nat West Bank plc.

The reason is that we issue instructions to all the contractors concerned and subsequently settle their accounts on the investor's behalf.

Valuations & The Lender

Valuations are carried out by the Lender's Panel Valuer, where necessary though we obtain drive-by valuations in advance of purchase from either Colleys or a recommended local Panel Valuer.

Dependent on the investor's requirements loans will normally be between 75% & 85% of the value of the property on an Interest Only basis.