Executive Summary Lease Option: No Mortgage Application, No credit Checks

PROJECT NAME: LEEDS 3 Bed Terrace Completion Time: 6 weeks

Market Value (Confirmed by research) £100,000 UP FRONT COSTS
Investor Price £90,000 Option Fee 5%
Extras nil Other up front costs:
Total Purchase Price £98,600 Reservation fee (paid to Escrow) n/a
Reservation fee up front paid to escrow £2,500 Legal Fees (paid to client solicitor)
Discount from Market Value 10% £10,000 Vendor Legal Fees (paid to vendor solicitor) searches
Option Fee 5% £4,500 Broker Fees n/a
Legal Fees 1% £900 Documentation Fees (paid to Escrow)
Mortgage Amount 90% £90,000 Total up front costs
LOAN AMOUNT (vendor) Incidentals
Vendor Outstanding Mortgage £90,000 Setting up letting agent
Mortgage Rate 2.4% £180 Due Diligence
Option Value on Completion £98,600 ANNUAL RENTAL YIELD (Standard Tenant on AST) per month
COMPLETION Rental Payments £475
Weeks to Completion 6 Management Costs £45
% Annual Capital Appreciation 6% Mortgage Payments £180
Revised Property Value at year 3.5 Option Exercised £122,675 Net Rental Income £250
Revised Property Value at year 7 Option Exercised £150,363 Total Rental Profit on full term
Exercise Option Re Mortgage 75% £112,772 ANNUAL RENTAL YIELD (Tenant Buyer Scheme)
Vendor Mortgage Settlement £90,000 Property Purchase Price (3.5 year scheme) £122,675
Equity £60,393 Rental Payments £675
Cash Released £22,772 Deposit Saved (and refunded) £200
Remaining Equity £37,621 Tenant Buyer Fee (deposit to Investor)
RETURN ON INVESTMENT (ROI) Standard Tenant
New interest based on re-mortgage 5% At 3.5 year point £24,075
Mortgage Interest payment (year 7) £469 At 7 year Point £72,763
ROI at end of term 846%
Lease Option Agreement registered with Land Registry
All fees paid in Solicitors Escow account and released on completion
 £
£4,500

£2,500
£900
£450
nil
£250
£8,600

7 days
per annum
£5,700
£540
£2,160
£3,000
£21,000

£122,675
£8,100
£2,400
£5,000
Tenant Buyer
£66,025
£122,063
1419%