Prime investment properties at substantial discounts. 20% - 30% Discount. Various methods of purchase & financing. Transparent deal structure.
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Property Investment And Mortgage FAQs

Please click on the questions to view answer.

1. What does BMV stand for and what are Below Market Value properties?

2. Is this the right time to invest in properties?

3. What ways can an investor purchase properties from We Sell BMV?

4. Can property investors obtain an independent valuation?

5. Can BTL investors get a mortgage with low interest rates?

6. Do We Sell BMV take care of the whole process of buying the property and post completion process?

7. Why should I invest in property?

8. What different types of mortgages are there?

9. How does each type of mortgage work?

10. How can I find the ideal location for buying a property to invest in?

11. How do I get the We Sell BMV property deals?

12. If I bought a property from We Sell BMV, how much will you charge in administration fees?

13. Are there any other costs involved in the process of buying property?

 

1. What does BMV stand for and what are Below Market Value properties?

BMV property is the term used as an abbreviation of 'Below Market Value' property. BMV is basically buying a property 'Below Market Value' and paying less than the seller could reasonably expect to receive on the open market. The property is then rented out, rented back to the seller or flipped (re-selling the property quickly for a modest profit).

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2. Is this the right time to invest in properties?

In a word ' YES'. As the economy tries to recover from what has been said as the worst recession in history and there by effecting the the UK property, naturally we are in a position where residential property is being valued and are priced at prices that were seen in the market 8 -10 years ago. Therefore it's safe to say now is the time to buy property when it at its lowest point within last few years, as the markets are down now is the time to capitalise and buy. Couple this together with We Sell BMV being able to offer discounts of up to 30% then not only are you buying at the lowest point in the market but you are also getting and added discount on your property, this then gives you extra equity that has been gifted to you and makes your property invest give you a better return.

Rents have also risen over the past few years as would-be buyers have continued to struggle to raise big enough deposits or meet lenders’ strict mortgage criteria to buy their own homes. This means the rental market has never been stronger and is achieving strong rental figures. In a nutshell you can buy a great BTL property well under its current market value, receive extra gifted equity and rent the property with ease and a good amount due to the current economic demand.
 

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3. What ways can an investor purchase properties from We Sell BMV?

Cash buyers who prefer to simply buy at the discounted rate or net purchase price as a straightforward cash purchase can do so, therefore not having to rely on mortgage or lenders finance. If our cash buyers wish to do a refinance post completion in order to pull out money they placed to purchase and buy the property then We Sell BMV are on hand to help and can refer you to our panel of brokers and refinance specialists.

Finance buyers who prefer to buy at the discounted rate or the net price can do so by acquiring finance or a BTL mortgage through our mortgage and finance specialists. This can enable those that have limited funds to purchase and buy whilst still taking advantage of the below market value deals, it can also assist with those that wish to speed their funds to acquire further properties as part of their portfolio.

Portfolio buyers, private equity funds and investment consortiums can also purchase through We Sell BMV, as each type of investor has different requirements and circumstances so do our larger institutional buyers so all can have a bespoke service to suit them and their aquisitional needs.
 

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4. Can property investors obtain an independent valuation?

Of course you can, we encourage all our buyers to obtain a RICS certified valuation, this will help confirm the discounted price off the open market valuation. If We Sell BMV offer 20% off the current market value then thats exactly what you will get, by obtaining an independent a RICS valuation will help cement the true value of the property and give you the peace of mind.

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5. Can BTL investors get a property mortgage with low interest rates?

We Sell BMV have an expert panel of finance specialists and mortgage brokers on hand to help our BTL investors with their finance needs. Depending on your circumstances, the number of mortgages in your name, whether or not you want a joint application and your credit score can determine the type of mortgage product available to you. Currently mortgages are available from anywhere between a 90% LTV to a 60% LTV, the most typical mortgage available is 75% LTV.

Naturally rates can go up and down, fluctuations in the market are inevitable, with so many options available current interest rates can be anywhere between 4% - 6% once again depending on the type of mortgage product available to you. We Sell BMV make sure that all our available below market value discounted properties all yield a positive return on investment, that way against the typical mortgage product available your property purchase will be cash positive.
 

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6. Do We Sell BMV take care of the whole process of buying the property and the post completion process?

Yes we do, we try to make the whole process as easy and stress free as possible. We are on hand to assist with everything your aquisitional needs require such as finance and mortgage, valuations, solicitors, conveyancing and legal representation, bridging finance and loans. We can even help with all post completion requirements such as lettings and rental, refurbishment, refinance and even selling your property.

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7. Why should I invest in property?

Property has been and always will be one of the best asset class's to invest in for a number of reasons. We have outlined 11 great reasons why property is a great investment.

Investing in properties creates wealth & millionaires

More millionaires have been created through property than any other form of investment. Remember, there's nothing wrong with seeing what successful people do and applying those principles to your own life. If the majority of extraordinarily wealthy people have used property or real estate profitably, there is no reason why you shouldn't also.

Anyone Can Invest in Properties

Property investment is not just for the wealthy. It doesn't really take large sums of money to get involved in real estate. This is because banks will lend you up to 80% against the security of residential property, which means that most people with a steady job and a little capital behind them can afford to buy investment properties. It has been shown over and over again that careful and intelligent use of property can enable ordinary people to become property millionaires in about 10 years. If you truly intend to become one of the wealthy people in the future, you should probably take a serious look at using property to your advantage.

Security

It's often said that property or real estate offers the security traditionally known as of 'bricks and mortar', therefore it's one of the safest and potentially most profitable investment markets to invest in.

You never hear of houses 'going broke' do you? But lots of companies have gone broke. Even companies previously considered blue chip have gone broke. Yet even allowing for the ups and downs of real estate values that we hear about, the underlying trend of property prices in the major capital city residential markets has been steady growth.

Is property a secure investment? Just ask the banks. Banks have always recognised property, and especially residential real estate as an excellent security. The reason they'll lend you up to 80% of the value of your property is that they know property values have never fallen over the long-term. In fact, the entire global banking system is underpinned by the continual growth of residential property.

But the really special feature of the residential property market is that owner-occupiers, that is people owning or paying off their homes, own about 70% of these properties.

This means the majority of the market in which we invest does not act according to normal investment criteria or motivation. If times get tough the majority of homeowners don't panic and rush to sell, as can (and did) happen in other sectors such as the share market. So while property prices do fluctuate over time, affected by supply and demand, the large homeowner market will always underpin property values.

Another factor that adds to the security of residential property as an investment is that you can insure it against most risks. You can insure the building against fire or damage and you can insure yourself against the tenant leaving, damaging your property or breaking the lease.

Income That Grows

The rental income you receive from your investment property allows you to borrow and gain the benefit of leverage by helping you pay the interest on your mortgage. Over the years the rental income received from property investments has increased at a rate that has outpaced inflation.

Will this continue in the future?

Well, statistics show that the level of home ownership is slowly decreasing. There are a number of reasons for this but, in particular, as property prices keep rising and the strict conditions in qualifying for a mortgage and larger deposits required by the lenders, fewer people are able to afford their dream homes. This is compounded by higher rentals meaning that many first home buyers have been hit with a double whammy - making the great dream of owning a house just that for many - a dream.

We know that the government is having difficulty providing public housing, which means there will be plenty of opportunities for landlords to make good money in residential property investment, particularly if you own a property that will be in demand by tenants of the future.

Consistent Capital Growth

Good capital residential property has an unequalled track record of producing high and consistent capital growth. Over the past 25 years the value of the average property has doubled in value every eight to 10 years. However, in the short-term the picture is much more uncertain and confused, and at times capital growth stops and even reverses, as we saw in the early 80s, the early 90s and now in some areas in the most recent slump we experienced in 2008. If buying now then you are in the driving seat, prices are the lowest in years with further discount available off these prices then you as the investor are buying at the right time and as they say the only way is up!

You Can Buy Your Property With Someone Else's Money

Sure you need some of your own money, but the ability to use leverage with real estate significantly increases the return on your investment capital and, importantly, it allows you to purchase a substantially larger investment than you would normally be able to. Cash buyers can buy and more or less refinance using and capitalising on the added discount given by We Sell BMV. Net buyers buying on finance terms can purchase on the lower figure by placing a deposit as per lenders requirements and then even follow suit with a refinance to realise their capital and potentially expand their investment portfolio.

You Are In Control

Property is a great investment because you make all the decisions and have direct control over the returns from your property.

Tax Benefits

Property investors are able to take advantage of a range of tax benefits including tax deductions and depreciation allowances. We sell BMV advises for each individual to explore their own tax benefits through a tax specialist. If need be We Sell BMV can recommend a tax specialist for more info and detail on how best to make tax work for yourself.

There are hundreds of ways you can add value to your property, which will increase your income and your property's worth.

You Don't Need To Sell It

Unlike most other investments, when property goes up in value you don't need to sell in order to capitalise on that increased value. You simply go back to your bank or mortgage broker and get your lender to increase your loan or quite simply refinance.

Most Forgiving

Even if you bought the worst house at the worst possible time, chances are that it would still go up in value over the next few years. History has proven that property is possibly the most forgiving investment asset over time. If you are prepared to hold property over a number of years, it's bound to rise in value.

There's really no other asset class quite like property. And with a new property cycle working its way around again then now is the right time to invest!
 

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8. What different types of property mortgages are there?

There are a number of different types of mortgage products available and interest rate options to choose from, all depending on your personal circumstances and requirements. Most of our investors go for the traditional BTL mortgage products however some specialist products are available and some may even opt for other types of traditional mortgages if your circumstances should allow.

100% Mortgage

Although popular with first-time buyers, it’s now unusual to find a lender who will advance 100% of a property’s purchase price. Most lenders ask for a minimum of 10% of the property purchase price as a deposit. You’ll need to be aware that, if the property market hits a downturn and the value of your home decreases, you could have ‘negative equity’ on your house – meaning that you owe more than your property is worth.

Buy-To-Let Mortgage

The industry standard and most popular investor mortgage. If you’re looking at a property as an investment to rent it out rather than as your home, then you’ll need a buy-to-let mortgage. Lenders usually ask for a larger deposit – around 25% – and ask that the monthly rental income exceeds the mortgage repayments that you will make. Some buy-to-let mortgages can include ‘payment holidays’, to help landlords cope with any tenant-free periods of time.

Offset Mortgage

An offset mortgage balances the interest you earn on your savings, against the interest charged on what you owe on a property. If you have significant savings (perhaps in excess of £30,000) this kind of mortgage could be right for you. Offset mortgages calculate interest on a daily basis, so the more you can keep in the account – the better. If need be our panel of mortgage brokers whole-of-market mortgage adviser will be happy to explain in more detail how offset mortgages work, as each lender’s approach to offsetting can be slightly different.

Current Account Mortgage

A current account mortgage is similar to an offset mortgage, but takes the concept one step further. All of your finances are combined in one bank account. For example, instead of having three accounts (a mortgage debt of £100,000, savings of £10,000 and a current account balance of £1,000), you’d have just one – with a balance of £89,000 owed to the lender at that point in time. When you pay money in, such as your salary, your debt reduces – and then gradually increases again over the month as you spend money.

Self-Certification

Self-certification mortgages are harder to find these days, as lenders are less willing to take a risk without evidence the loan can be repaid. If you can find a ‘self-cert’ mortgage, then you’ll need to provide evidence of earnings over a period of time– usually the last three years – and generally be asked to pay a larger proportion of the property purchase price as a deposit. Interest rates charged on a self-certified mortgage are usually slightly higher than standard mortgages.

Commercial Mortgages For Businesses

Commercial mortgages are loans for business purposes. They’re usually secured against the premises from which the business runs, although in some cases a residential property may be used as security. Successful repayment of the mortgage relies on the success of the business, so the rates and fees are often higher, reflecting the higher levels of risk involved.

First-Time Buyer

It’s not easy to get onto the housing ladder, but the first step is to find a ‘first-time buyer’ mortgage. These often have incentives attached, such as cash back or lower fees. They’ve led to a good deal of innovation in the mortgage market – with lenders offering guarantor mortgages (where a parent or other responsible person guarantees the debt) and shared mortgage schemes (where friends group together to buy a house). There are also government schemes aimed at helping first time buyers – including affordable housing schemes for key workers and first time buyers.

Shared Ownership

Depending on the property you’re buying, and the arrangements you’re making with the seller, you could be eligible for a shared ownership mortgage. In most cases, these are arranged for people moving into property through a housing association scheme. With shared ownership, you may only have to buy between 25% and 50% of the house initially and you may have later opportunities to acquire a higher percentage. This makes it much more affordable, although you’ll also have to pay rent on the portion that you don’t own. On the downside, you may not benefit from an increase in property price as any increase in equity will be shared in proportion to the amount of the house that you own.

Adverse Credit Mortgage

There are several names for adverse credit mortgages: sub-prime, credit impaired, non-status, bad credit or a non-standard mortgage. They all refer to the same thing: a mortgage that’s designed for someone with a poor credit history. Products vary in the criteria the lenders use for deciding whether to accept a borrower, and rates can be higher than normal, so it’s important to get expert advice from an IFA or whole-of-market mortgage adviser.

We Sell BMV can put you in touch with mortgage brokers, mortgage IFA’s and whole of market mortgage advisers in order to best give you the correct advice and product to suit you.
 

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9. How does each type of mortgage work?

There are a number of types of mortgages, some of which are confusing and some of which are relatively unknown. We Sell BMV have a panel of mortgage brokers and specialists that can help go through the finer detail or finance and mortgages but to give you an overview listed below are some available options:

Standard Variable Rate Mortgages

Your payments will fluctuate in line with changes to your lender’s standard variable rate; this is often, but not always, driven by the Bank of England’s base rate. Essentially this means that your monthly payment could go up as well as down.

Typically, standard variable rate mortgages can be a more expensive way to borrow money compared with other mortgages, although usually there will be no redemption penalties in place, offering you the flexibility of moving to another lender or product when it suits you best.

Tracker Rate Mortgages

A tracker mortgage is a variable rate loan that is usually set at a percentage above or below the Bank of England or another independent base rate. Your interest rate will track (move up or down) in line with that rate.

With a tracker rate it's more difficult to budget as your payments can fluctuate, so you should ensure that you can stretch to a higher monthly payment amount should you need to. However, if interest rates do go down you will benefit. This type of mortgage may include an early redemption charge and an overhang.

Fixed Interest Rate Mortgages

With a fixed rate mortgage the interest rate applied to your loan is fixed for a set period, meaning that the amount you pay is guaranteed to stay the same for the duration of the fixed rate – even if interest rates do go up. If interest rates go down, you won't benefit. The main advantage of a fixed rate mortgage is that it makes it easier for you to budget your monthly outgoings and you can be confident that your monthly payments won’t rise to an unaffordable level.

Once the fixed rate period ends, however, your lender will normally switch you to their standard variable rate and this means that your payments could fluctuate. Fixed interest rate mortgages almost always include early redemption charges and some may also have an overhang i.e. where the early redemption charge remains in place for a set period after the fixed rate has ended.

Capped Interest Rate Mortgages

With a capped interest rate mortgage your monthly payments are variable and may be linked to a base rate, but they are also capped at a certain level (known as the ceiling), above which they cannot rise. The cap will apply for a set period, after which you will normally move to the lender’s standard variable rate.

The main advantage of this type of mortgage is that you have the security of knowing what your maximum payment will be over a set period, but can also benefit if interest rates go down. Typically, capped interest rate mortgages include an early redemption charge and some may also have an overhang.

Discounted Interest Rate Mortgages

With a discounted interest rate mortgage your payments will be variable but you will get a discount on the lender's standard variable rate for a set period of time. When this comes to an end, you’ll usually move to your lender’s standard variable interest rate.

Discounted mortgages almost always include an early redemption charge and may include an overhang. You should always be confident that you can afford the repayments once the discounted period ends.

Flexible Mortgages

With a flexible mortgage you have the option to change or vary your monthly payments to suit your circumstances or to pay off the loan earlier. Some flexible features are becoming common on other types of mortgage too, such as over payments, under payments, payment holidays and extra borrowing. Many flexible mortgages are free of early redemption penalties, so you're not locked in and can move to another, more suitable, product if you so desire.

Offset Mortgages

With an offset mortgage, your main current account and/or savings accounts are linked to your mortgage. Each month, the amount you hold in these accounts is deducted from the mortgage balance before the interest is calculated on the loan.
As the balance of your current account and savings accounts rises, you pay less interest on your mortgage, but if the balance of these accounts decreases then you'll pay more.

Cashback Mortgages

With a cashback mortgage, the lender pays you a sum usually equivalent to 2-5% of the loan amount shortly after the mortgage (or remortgage) completes. Normally the cashback is offered as part of another benefit e.g. an interest rate discount, but pure cashback products are available.

Normally, lenders apply an early redemption charge to this type of mortgage, so if you do move to another lender within the first few years of the loan you may need to pay a significant sum back to the lender in order to exit the agreement.
 

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10. How can I find the ideal location for buying a property to invest in?

We Sell BMV have regular properties in all areas up and down the country, all our available properties come with a discount typically in the region of 20% - 25% below current market value. Most investors don't mind where the properties are as we stick to a specific criteria including price, rent ability and future saleability. The fact that we can assist in letting the properties doesn't really effect the location as long as they are tenanted and the income is being paid to you then everything is ok. Some investors have certain specific location requirements and this too is ok as we can source specific areas and if any come available then we will forward the relevant details to you.

If you are unsure or a novice investor then please speak to one of consultants who will guide you through for you to determine where and what’s best to invest in.
 

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11. How do I get the We Sell BMV property deals?

All our properties are released through email as soon as we have full details including photos, both external and internal and then it becomes a first come first serve basis. If you have specific requirements or certain areas of interest then we will try and source those particular areas and forward you any that come available that fit our investment criteria model.

We have an active database of ready to invest investors that are constantly looking to purchase below market deals, We Sell BMV can typically send out at least one deal a day sometimes two or even three. To make sure you get the best opportunity to get these great deals then please register your details and if you wish call us or arrange for a call back at a time that suits you.

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12. If I buy a property from We Sell BMV, how much will you charge me in administration fees?

We are typically competitive with regards to our finders or administration fees. We do not make any money on the property, we simply give you the full available discount. We charge a small fee that fits in relation to the work that we do in order to acquire and administrate the transaction on behalf of our clients. We believe in fair opportunities and costs, that’s why our fees vary depending on the specific requirements and purchase options for the investor.

For a more specific or detailed breakdown on our fees please feel free to call us and we will be more than happy to give you a full breakdown according to your requirements.
 

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13. Are there any other costs involved with the process of buying property?

Naturally when buying a property there are the general purchase or soft costs involved. These are exactly the same and are no different. Usual costs to consider are mortgage broker fee, valuations, legal fees & conveyancing, and bridging. These costs are not applicable to everyone as every investor s requirements and format of purchasing is different, however we do promise than any costs are all completive and fair within the industry. We have a policy that if you are unhappy about any part of the process even the costs we will do what we can to help and solve any issues.

Any costs are always disclosed prior to processing of any purchase that way we have no hidden fees or costs.
 

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Investment Properties

BMV Property - 2 Bed Mid Terrace - Stoke-On-Trent
We Sell BMV: Invetsment properties available all around the UK
Discount Available: 25%
Open Market Value: £40000
Net Purchase Value: £30000
Equity Bonus: £10000
Estimated Rental: £300
Yield: 12%
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2 Bedroom Below Market Value Property BMV Investment for Sale in London - London
We Sell BMV: Invetsment properties available all around the UK
Discount Available: 15%
Open Market Value: £245000
Net Purchase Value: £208250
Equity Bonus: £36750
Estimated Rental: £1450
Yield: 8.4%
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Properties Available All Around The UK

We Sell BMV: Investment properties available all around the UK