Marc Barnes reacted to haf1963 in Deal Advice/Critique
Excellent deal by the sounds of it and if its really 110 versus 150k then I would not really be asking many questions or worrying about future mortgages as the deal is so good. The seller 'however motivated' must not be very smart as, in the current hot market, he could sell for 130 and get it instantly snapped up (assuming its in a half decent area).
Marc Barnes reacted to Damyan Georgiev in Deal Advice/Critique
If I were you, I would snap it up, maybe spice it up a little bit to make it look a bit better (a bit of paint, maybe new flooring, etc) and take it straight to the sales market to bag the profit if you're confident in the market value. Maybe ring up some local agents to get some guidance on that but reserve some scepticism as they may overvalue. Valuers can be very wary at the moment even though sales are strong and I've heard of lots of down valuations recently. Lack of comparables and no value added would just give them an excuse to not move the value upwards.
BTL can then be an alternative strategy if you can't sell.
Marc Barnes reacted to giles s in Deal Advice/Critique
Sounds great, I see your problem as sales price could limit both sales and future valuation, but do you need to pull all the cash out? Why not mortgage ASAP on shortest deal, release as much cash as possible then just wait for 2 years rather than 6 months, worst case your tying up £27.5k for 18 months, but leave it 6 months you may still need to take out a 2 year deal anyway tying it up for 30 months.
It depends what your planning on doing with the cash, personally I’d release ASAP.
Marc Barnes reacted to the_dave in Deal Advice/Critique
Without knowing the address it's difficult to really comment on the valuations you mentioned (I'm not suggesting you share it) but just because you bought it in cash for cheap doesn't mean a valuer will come in and say it's only worth the £110k you paid. Depending on who values it you might end up getting a slightly lower valuation than if you'd bought and refurbed but with that much meat in the deal it seems to me like you should have plenty of wiggle room.
You could just straight up sell it on for £130k and pocket a solid profit so there's multiple exit strategies if you don't like the valuation you get. If you're numbers are correct on valuations then buy buy buy.
Marc Barnes reacted to sam_f3 in Deal Advice/Critique
Simple question perhaps, you state in (3) that "the property is in a postcode that has had 7 sales in 12 years, so there no real comparables". How have you then come up with your rather precise £149k valuation? What was the last sale in the post code (and how does it compare) and what did the vendor pay for the property 2 years ago? Note that new build properties do sometimes tend to dip in value once they are no longer new but agree the £110k purchase price sounds like a steep discount nonetheless. You'll need to provide some further detail on this one (and you'll no doubt need to demonstrate this to a valuer too). In the absence of any other evidence, your purchase would likely set the new market price all else equal.