Wigan Apartments

In terms of securing the

future for you and your
family, property has
become a staple of all
investor’s portfolios”
North West Apartments
Contents

1. Structure of Deal
2. Financial Details
3. Due Diligence
4. Location
5. Neighbourhood Profile
6. Fees & Buying Process
7. Buy to Let Mortgage Rates
8. Terms & Conditions
Structure of deal:

Property Type: 1 Bedroom duplex apartment

Accommodation compromises of:
Ground Level – Hall, Living room, kitchen.
1st Level – Bedroom, Bathroom

Market value £67,000 (based on a current RICS valuation)

Investor price £50,250
Discount from market value 25%
Purchase price on contract will be full Market Value price
Estimated rent 350 pm
Rental yield of 8.35%
75% LTV Mortgage available subject to status
25% deposit provided through bridging facility
Investor to use recommended solicitor
Lettings and management service available

Structure of deal:

Property Type: 2 Bedroom apartment

Accommodation compromises of:
Hall, Lounge/kitchen, Bedroom 1, Bedroom 2 and Bathroom

Market value £75,000 (based on a current RICS valuation)

Investor price £56,250
Discount from market value 25%
Purchase price on contract will be full Market Value price
Estimated rent 400 pm
Rental yield of 8.53%
75% LTV Mortgage available subject to status
25% deposit provided through bridging facility
Investor to use recommended solicitor
Lettings and management service available
Financial details: 1 bed (8 available)
Based on BM Solutions 75% LTV 4.7% interest rate 2 year tracker
other mortgage products are available
Loan amount of £51,506 (including 2.5% arrangement fee)
Monthly payments based on 4.7% interest rate of £201
Rental income of £350 pm
Potential cash positive rental income of £149 pm

Financial details: 2 bed (4 available)

Based on BM Solutions 75% LTV 4.7% interest rate 2 year tracker
other mortgage products are available
Loan amount of £57,656 (including 2.5% arrangement fee)
Monthly payments based on 4.7% interest rate of £225 pm
Rental income of £400 pm
Potential cash positive rental income of £175 pm

5 year profit based on 5% market capital growth and rental income:

Rental: £10,500
Projected 5 year value: £95,720
Price paid: £57,656 (plus purchase costs)
5 year profit: Capital growth+rental profit = £45,119.75 (approx)

Turn your investment into £45,000 in 5 years..!*

Return on Investment = massive..!
*Guideline for illustration only, profits will vary
Due Diligence

Are AST’s available?

They are available on tenanted units and will be provided by the solicitor acting
upon exchange.

Are we direct?
We are dealing with the vendors agent with relation to this sale

Is a viewing possible?
Given enough notice, yes. However we do not disturb tenants so you would be
viewing an empty apartment.

Are these on the open market?

This is an off market sale, although they will be advertised at £75,000 for a 1 bed
and £85,000 for a 2 bed apartment

What is the condition?

All are in average/good condition. No refurbs required. They apartments were
converted from four houses almost 20 years ago. Please bear in mind that you are
investing in older style property which could require redecoration at some point.

How long is the lease?

The properties will be on new 250 year leases on completion of the sale

How many are tenanted?

Six of the apartments are currently tenanted and a managing agent is in place to
secure others tenants during the sale period on standard AST’s

Can I use my own broker?

This is a fully packaged deal, solicitors, brokers, and completion team are all in place
for your convenience.
 Springfield Street,
Wigan, WN1 2NA
North West Apartments

Bus Stops Tennis Courts

Off (A49) Wigan Lane

Tesco

Springfield Street
If you live on Springfield Street, your nearest
primary school is Mab’s Cross Primary School
and your nearest secondary school is The
Deanery CofE High School on Frog Lane.

If you are a regular user of the Post Office,

Springfield Street would be a great place to
live, as a branch is located on Wigan Lane, the
nearest bank (HSBC) is on Mesnes Road.

There is also a handy petrol station just

around the corner, however the biggest ad-
vantage is that you can nip out to do your
food shopping at the local Tesco supermarket
just minutes away on Central Park
 Fron
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Rear of t
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Neighbourhood Profile
Often, many of the people who live in this sort of postcode will be low income
singles living in small rented flats. These are known as type 22 in the ACORN
classification and 1.38% of the UK's population live in this type.

Geographically neighbourhoods fitting this profile occur in various locations

including Canterbury, seaside towns such as Torquay and Blackpool, and Scottish
towns such as Dundee, Galashiels, and Paisley.

These neighbourhoods are largely composed of single people, both young and old.
Around 20% of the people in these areas are in their 20s, but 10% are over 75. Both
are well above the national average. The dominant characteristic is the single
person renting small flats. There may also be some communal establishments such
as nursing homes.

Incomes are quite low. People have average educational qualifications. Their
relatively routine jobs are in shops and offices, and there is some unemployment.
With the elderly contributing to higher than average numbers of people with long
term illnesses, these areas are beginning to experience some need for social
services.

While the younger people aspire to gold cards, interactive TV and telephone
banking, the reality is they have low limits on their credit cards, plan to pay off
debts, and possibly need a loan. Their spending on food is low, and catalogue
shopping helps them economise. Few people own a car, with those who do paying
high insurance premiums. Most get about on foot, by bike, or public transport.

The pub is a relatively popular place for eating, either at lunch-time or in the
evening. Leisure interests tend to be football and betting on the horses. At home
they might unwind by listening to music or reading a novel. There is a keen interest
in self-improvement and education.
Fees and buying Process

The purchase process is as follows:

Investor carries out own due diligence and agrees to pur-

chase
Professional fees invoiced by the company (cc Agent)
Professional fees paid by investor (bank transfer).
Reservation form signed & returned by post
Investor contacted by mortgage broker to achieve ‘decision
in principle’ from the lending bank
Surveyors instructed to carry out valuation
Mortgage forms returned by investor
Once successful, solicitors notified and contact investor
Investors solicitors work towards exchange and completion

Should investor not be accepted for finance, ‘unsuccessful

DIP’ reservation fees are refunded less an administration
charge of £49+vat

Example of leverage
Property value: £100,000 (RICS Value)
Purchase price: £75,000 (plus purchase costs of
£4,000)
Mortgage rate: 5%

Mortgage payments: £3,750

Rental Income: £6,000

Profit on rental: £2,250

Capital Growth (based at 5% pa)

Value at year 1: £100,000

Value at year 5: £135,179

Profit in 5 years (capita growth+rental income)

£135,179 (minus purchase price+purchase costs)

£55,179 (add on the rental profit of £2,250 x5 years)

£66,429 gross profit in 5 years*

Return on Investment 1,660%
Buy to let mortgage rates 16/10/09
RATE PRODUCT LIFE ARR FEE LTV ERV

4.89% Tracker 31.10.11 £1999 75% 125%

4.94% Fixed 3 years 2.5% 70% 140%

5.25% Variable Lifetime £500 75% 135%

5.59% Fixed 31.08.11 £1999 75% 125%

5.74% Fixed 3 years £999 75% 125%

5.99% Fixed 5 years £999 70% 115%

5.99% Fixed 31.07.14 £599 75% 115%

* Rates & products are a guideline only and will vary depending on individual circumstances
Terms and Conditions Policy
Definitions
The following definitions will apply to terms used throughout this document unless the context in which a term is used implies a meaning that is different to
the definition provided.

The Company The company, affiliates, officers, employees, agents, contractors, successors and assigns.

Reservation Request An application made by or on behalf of a company, entity, group or individual to purchase a
property offered by the company.
Reservation A prior right of purchase granted to a company, entity, group or individual of a property
offered by the company
Purchaser The company, entity, group or individual purchasing a property offered by the company.

Administration Fee A fee payable by the Purchaser due in respect of the anticipated purchase of a property
offered by the company
Reservation Fee A fee payable immediately by the Purchaser in order to secure a Reservation.

Assessment Period A period of five full working days from the date a Reservation fee has been paid by the Pur-
chaser.

General Terms and Conditions

The Purchaser must have read and understood the Reservation Form and read, understood and agreed to both the disclaimer and the terms and conditions of
the Reservation Form before conducting any business with the company. If you are unsure about any terms, please e-mail the company for further clarifica-
tion.
By completing a Reservation Request and paying a Reservation Deposit, it will be implied that you are agreeing to the terms and conditions outlined in the
Reservation Agreement.
Most of the deals offered by the company are subject to adherence with a strict payment and contractual schedule. Failure to comply with the terms of the
stipulated schedule will invalidate the deal and lead to loss of monies paid. Therefore, please do not proceed with any deal or pay any monies out unless you
are in a position to comply with the stipulated schedule.
The company can accept payment via bank transfer, credit card, debit card or cheque. The company is unable to accept payment by cash or bankers draft.

Reservation Procedure
Reservation of a property grants to the Purchaser a prior right of purchase over that property. To reserve a property, the Purchaser must pay a Reservation
Fee, which consists of two elements. The amount is stated on all property details and is variable by property. The first element is non refundable but is credited
towards the purchase of the property. The second element is refundable should the vendor withdraw from the sale.
The Purchaser must be ready to complete within 28 days of the Reservation being confirmed unless stated or agreed otherwise. A Reservation is not confirmed
until the Purchaser has been notified in writing by the company and the agreed Reservation and Administration Fees have been paid by the Purchaser.
The Purchaser will be notified of the full address of the property only when the agreed Reservation and Administration Fees have been received by the com-
pany. Upon receipt of the agreed Reservation and Administration Fees the Purchaser will be granted an Assessment Period of five working days during which
time the Purchaser may complete any due diligence and must be satisfied that the property is sufficient and appropriate for purpose. If the Purchaser wishes
to withdraw from the purchase during the Assessment Period, the Purchaser must notify the company in writing immediately. The agreed Reservation and
Administration Fees (less the secondary element of the Reservation Fee of £500) will be refunded in this event. Following the Assessment Period, if the Pur-
chaser chooses to withdraw from the purchase no refund will be given.
The Administration Fee is non refundable except where the vendor withdraws the property from sale or the property does not value at the agreed purchase
price and the purchaser decides not to proceed to completion because of either of those reasons.
No interest shall accrue to the Purchaser in the event of a refund of the Administration Fee.
The company does not accept responsibility for any expenses or losses incurred by the purchaser in any event including if the property fails to achieve a valua-
tion sufficient to that given in the promotion. Expenses and losses include but are not limited to valuation fees, broker fees, legal fees and research fees.
The purchaser is responsible for performing his/her own due diligence in order to determine the property’s value and suitability before accepting the deal and
is given five working days for this purpose.
Unless stated or agreed otherwise, it is a condition of the Reservation that the Purchaser completes the purchase using a solicitor and/or a mortgage advisor
nominated or approved by the company. If the purchaser uses his own solicitor, the purchaser agrees to give the company full contact details of the solicitor,
agrees to inform the company if the solicitor is changed at any time during the transaction, and in the case of gold and Platinum members will authorise the
solicitor to pay the company that proportion of the Administration Fee due, directly at completion.
If a situation occurs where more than one applicant requests to reserve the same property, the property will be allocated to a single Purchaser at the discre-
tion of the company. The decision to allocate a property to a particular Purchaser will be based on the merit of each applicant’s request and perceived likeli-
hood that the purchase will continue to completion. The company will notify unsuccessful applicants either in writing (electronic or otherwise) or by tele-
phone. The decision of the company is final.
Disclosure of Information
Each party acknowledges and agrees that any information relating to the other party's business which is not generally known to
the public is confidential and proprietary information.
The Purchaser agrees not to disclose the details of the seller, the property, or the property builder to third parties without prior
written agreement from the company.
The Purchaser agrees not to disclose the details of the property sourcing company to third parties without prior written agree-
ment from the company, or to use the services of the property sourcing company again without the engagement of the company.

Disclaimer
The company is neither a licensed investment advisor nor a licensed estate agent. The company is not authorised by the Financial
Services Authority to provide investment or financial advice.
The information on the website an in any other materials presented by the company is neither intended to be, nor should be con-
strued as, an invitation or inducement (direct or indirect) to any person to engage in investment activities.
Every reasonable effort has been made by the company to ensure the accuracy of the information displayed on this website and
in any other materials presented by the company. Whilst believed to be accurate, the information provided is for guidance only.
The company makes no representation and gives no warranties as to the accuracy of the information provided and accepts no
liability for any errors, misprints or omissions (whether negligent or otherwise).
The Purchaser should not rely on the information or representations of fact, but must satisfy himself through his solicitor and by
physical inspection of the property (or site) in question or otherwise as to their accuracy.
No person in the employ of the company has the authority to make or give any representation or warranty in relation to the in-
vestments. The company shall not be liable for any loss or damage whatsoever arising as a result of any person acting or failing to
act upon information provided.
The company displays information about properties on behalf of third-parties for whom the company is either an agent or repre-
sentative, and is therefore not responsible for the validity of the details relating to properties shown.
Any areas, measurements or distances are approximate only. Any text, photographs and plans are for guidance only and are not
necessarily comprehensive.
It should not be assumed that each property has all necessary planning, building regulations or other consents.
For all properties, it should not be assumed that the company has tested any services, equipment or facilities, and the Purchaser
must satisfy himself by inspection or otherwise.
All off-plan particulars are prepared from preliminary plans and specifications before the completion of each property and are
intended only as a guide. These may be changed during construction and final finishes could vary. The Purchaser should not rely
on this information and wherever possible, should instruct a solicitor to check the plans and specifications before exchanging con-
tracts.
The company is not responsible for future changes in the market or market conditions. Past performance is not a guide to future
performance. The value of the property can go up as well as down.
Mortgage applications are subject to individual status. Guarantees cannot be made that any particular applicant will obtain a
mortgage on the investments or the value of the mortgage they will be able to obtain.
Guarantees cannot be made on the resale of any of the properties.
Governing Law
These terms and conditions shall be governed by and construed in accordance with the substantive laws of the UK and the Euro-
pean Union.