UK resale properties
This document walks you through the process of taking advantage of the UK resale BMV (Below Market Value) property schemes offered by Provestor.
As a company, our goal for 2008 is to provide you with an even higher quality of personalised service & support, to help you achieve your investment goals.
The reasons why most people don’t invest in property for themselves, are the age-old problems of time, money and knowledge. But with our help, you can overcome all three!
At
Provestor, our mission is simple: to give you all the education you need so you can begin the process of building your property investment portfolio - whether or not you choose to purchase property through us.
People like you are looking for a simple & secure way to invest in property, without spending countless hours researching, building relationships and managing the process of buying.
Maybe you have yet to buy an investment property from
Provestor. Rather than having you begin your relationship with us by taking all the risks yourself, we can take them from you, by giving you a
guarantee that certain things will and won’t happen. This makes the entire process predictable for you, and gives you
peace of mind. You’ll have certainty that things will happen the way we say they will. But if for some reason they don’t, you’ll be suitably compensated.
Every investor has
fears when starting out, but we have designed a process to minimise those concerns as much as possible.
So what are these guarantees I’m talking about?
How are we going to take away your risk? How about this:
We’ll guarantee you an 85% BTL mortgage (subject to status)
- Mortgage Valuation Guarantee
We’ll guarantee you that the property gains the mortgage valuation we believe it’s worth.
We aim to tenant your property immediately on completion of purchase and after any required refurbishment. If we don’t, or the rent you receive is not within £50 per calendar month of what our research says*, we’ll pay you the difference for the first 6 months.
(* for properties below £200,000, or £100 per calendar month for properties above £200,000)
Seems too good to be true?
As you can imagine, we’re taking considerable risk on our side of things, but we really believe that we can perform on each one of these points.
Provestor knows from experience that the quality of our service and property offers are so good, that only a very small portion of clients will ever need to exercise any of these guarantees.
We have some excellent opportunities in the very near future for investors,
who are looking for property investments that are hassle-free or even completely hands-free!
We know many people who like the idea of investing in property, but
don't want the day-to-day hassles, or having to make decisions on exactly what they should buy.
If you are interested in investing in property, without the hassle of day-to-day responsibilities, or tenant finding, or maintenance or repairs, then this can be an ideal opportunity. Returns can still be approximately 25% per annum!
Provestor Limited can manage the entire process from start to finish, leaving you free to enjoy your life, safe in the knowledge that your investment is taken care of.
There are three distinct packages on offer:
Enhanced, Elevated, & Enriched.
OPTION 1 - Enhanced Package: Totally Hands-free Investing
We will buy a resale property in your name, at around 15% BMV, and refurb. it to a good standard. The client puts in the up-front costs of this purchase (15% deposit) and the refurb. (typically £20-22,000 combined costs). After 6 months, we will re-mortgage at Open Market Value, and refund
all these upfront costs, effectively giving a property for free.
Provestor’s charge of £9,500 + VAT includes legals, mortgage costs, valuation, refurb. work supervision, tenant find, tenant vetting rental guarantee.
We shall also have opportunities for
sophisticated or high net worth investors, and again these are totally hands-free opportunities. For a
Provestor charge of £28,500 + VAT, we will source four
Enhanced properties over 4 years (effectively giving you
four properties for the cost of
three, or one FREE property.) Email us on
sales@provestor.co.uk with your requirements.
OPTION 2 - Elevated Package: Hassle-free Investing
We will buy a resale property in your name, at around 15% BMV, and refurb. it to a good standard. The client puts in the upfront costs of this purchase (15% deposit) and the refurb. (typically £20-22,000 combined costs). After 6 months, we will re-mortgage at Open Market Value, and refund
all these upfront costs, effectively giving a property for free. You enjoy the freedom of tenanting the property to your own timescale.
Provestor’s charge of £7,500 + VAT includes legals, mortgage costs, valuation, and refurb. supervision.
OPTION 3 - Enriched Package: Low Money Down Investing
Still want to invest? You can buy an unlimited amount of properties using our scheme, for as little as £5,500 + VAT each (no refurb. or guarantees, though). We’ll source appropriate property to your requirements, and see you through the entire buying process. You enjoy the freedom of refurbing & tenanting the property to your own timescale.
Provestor fee of £5,500 + VAT covers our costs, solicitors, mortgage/loan fees and surveys.
"Where’s the catch?"
There is no catch. Essentially, you pay us and we deliver as per our contractual agreements All we ask is that you take up and purchase the properties provided by us and use our recommended solicitors and finance company.
(Please note: we ask for this to achieve delivery timescales: we take no income or commission from these partners!)
“Do you offer a risk-free guarantee?”
Yes, we do. If the valuation for your mortgage does not match the valuation we have given you for the property, or the deal cannot proceed due to circumstances beyond your control, then not only will we refund you the Introducer’s Fee below, but also the valuation fee that you pay to the mortgage lender. That’s how confident we are of the quality of these deals.
"What do I get for my fee?"
Let’s examine a typical deal we have just completed, of an Elevated scheme where Provestor’s fee (after costs) is £4,500:
| | Purchase price | | £115,000 |
| | BMV price | | £ 99,000 |
| | | | |
| | Mortgage | | £ 84,150 |
| | | | |
| | Deposit required | | £ 14,850 |
| | Refurb. cost | | £ 2,500 |
| | Investor Total | | £ 17,350 |
| | | | |
| | Re-mortgage valuation after 6 months | | £125,000 |
| | | | |
| | New mortgage | | £106,250 |
| | Deduct costs | | |
| | Old mortgage repay | | £ 84,150 |
| | Investor costs | | £ 17,350 |
| | | | |
| | Balance | | £ 4,750 |
Hence, the property has effectively cost nothing, and the client had their
Provestor fee of £4,500 refunded. They also had £18,750 in equity, and an appreciating asset. They were so pleased that they have re-invested in another.
For most of our ready-made deals, you can expect some or all of this amount to be returned, once the property has been remortgaged. Naturally, we cannot guarantee any figures from the outset, because every deal is different.
“What makes you experts?”
We are just beginning our 16th project, so have a personal track record of making significant sums running refurb. schemes.
“What will you buy?”
We will focus primarily on older, established properties, primarily 1- & 2-bedroom apartments up to £125,000, as these are the cheapest and easiest way for our investors to get started. Of course, if an excellent HMO property at £350,000 came along, we’ll assess that with the same rigour.
“Where will you buy?”
We have concentrated our efforts on hotspots where we feel property values have strong growth potential and where we have established relationships with agents and workmen. We will avoid areas where we know mortgage lenders down-value.
“Are there any conditions?”
We do insist on you using our mortgage brokers and solicitor. We have painstakingly assembled an experienced team who handle the legals and financing for us within the required timescales.
“How do I pay my fee?”
Direct bank transfer or debit card is best. If we take payment by credit card, then please remember the banks charge us around 2.5% for taking that payment. In such cases only, we add the credit card processing charge on to your payment.
“What do I do next?”
Email us at
sales@provestor.co.uk with the type of the deal you are interested in, and we will get back to you with some options.
