Private Mortgage Arrangement

davidmcn

Surveyors can do drive by or desktop valuation without needing access, that needn't hold things up.

TFH

Ok that's good to know. So first stop surveyor. Any advice on who to approach for talking me through the options and putting together a proposal?

getmore4less

Flat pays £500pm and you pay £700pm

if she paid £500k and did work on it how much does she want?

£1200pm on £500k is 2.88% gross yield (£450k 3.2%)

Selling a commercial proposition it's not worth £400k with the current rents

I can see why she may be keen for you to buy.

Are you getting mates rates for your rent?

What is the potential with other uses.

What planning use does it have and has it had any other use or likely to get other uses?

davidmcn

TFH wrote: »

Any advice on who to approach for talking me through the options and putting together a proposal?

If you mean after you've agreed a price, then I think

• the proportion which is a deposit
• how long you pay it off
• what the interest rate ought to be

are all points you'll need to agree in principle with the seller, I doubt anybody else can advise you on the "right" answer. These arrangements aren't commonplace, so although a solicitor can probably turn their hand to documenting the loan agreement and security, they can't really advise on what the "norm" is - because there isn't one.

TFH

She spent £500k on buying 2 buildings and converting them into studio / therapy room and 1 bed apartment. Both the flat and and the studio are being rented at below market value. I would estimated the flat should be at least £600 pcm and not sure about the studio as there's not really much to compare it to - originally she wanted £1000 per month, but after doing my business plan, I negotiated with her. She chooses to operate in this way because she is generous spirited and because she values having good, reliable tenants over maximising profit (she's not short of a bob or two). I would estimate that I could pay safely afford to pay £1700 per month mortgage payment per month based on my first 2 years trading and the value of the flat. Thanks for talking this through with me - I'm getting a clearer picture of how this might work.