Birmingham property for sale / flats for sale / houses for sale

9 property portfolio for sale on lease option agreement (£36,000)

Date posted: Friday 25th September
Location: birmingham & UK

Lease Option Portfolio For Sale

Take control of an established £1.29m property portfolio (9 properties, mature stock) for only £36,000 and gain a minimum return of 21% on initial cash investment with significant potential for further yield improvements and significant equity upside, estimated to be in the region of 150% of initial investment (£150,000). Properties are in various uk towns.

The deal:
Acquire a 5 year purchase option for £36,000.00 to take full control of the £1.29m portfolio including all incomes, development rights and current debt.

Refinance at anytime you choose within the 5 years as best suit you taking advantage of the current debt without need for securing funding.

Build increased equity in the portfolio during the course of the option period and use this to support re-mortgaging.

Pay off the vendor as and when you choose to refinance and realise the individual option at 105% of market value.

Available immediately on a 5 year lease to buy option

Benefits:
1.The portfolio is cash flow positive, producing a net return on initial cash investment of c. 21% per annum ((£7,722.36).

2.Establish a return on capital investment of an estimated 150% (£150,000) over the life of the option. Based upon average compound growth of 3% p.a.

3.Payback 100% of the initial investment through the profits in the portfolio – generating a near infinite return on capital.

4.Take advantage of a simple ready structured process – legal teams and options in place for all parties

5.Use the current financing solutions removing the need for difficult financing

Additional Benefits:
1.The opportunity to increase rental income exists on a number of units, providing a potential further increase in yield

2.Change of use to corporate lets would provide further potential upside

3.Take advantage of the end of fixed periods where mortgage costs are expected to drop in line with the providers SVR’s

4.Multiple exit strategies, including:

a.Remortgaging within the option period and completing the sale
b.Straight forward sale
c.Sale via a sandwich option to a “rent to buy” owner – increasing income and yield further

The Detail:
5 year purchase and control option on the portfolio
Option agreed at £1,354,500 (105% of current open market value)
Investor pays £36,000 for the Option
Investor gets full control of the portfolio and all income and income sources
Investor takes over the current debt repayments (currently £4,875.15 pcm)
Exercise the Option and sub Options at anytime within the 5 years paying the vendor off
Termination penalty of £24,500 for non exercise of option

The Process
A simple legal process already in place:
Legal teams for vendor and buyer in place and all paperwork ready to go.
Deal can be finalised in weeks – not the normal months

Please email me if you have any further questions or queries.

07785 350840

Contact details

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