Page 9 - Grey Wall Brochure

Phoebe Rd (Top Floor Apartment) Andy, retired Civil Servant
After taking early retirement from his full time job Andy had enough cash for a 25% deposit. The amount of monthly pension was not going to be enough to manage on until state pension was going to be paid and the lump sum was not going to last that many years either. So Andy decided to look into Buy to Let. After scouring the estate agents and viewing properties for a few weeks a 2 bedroom apartment in Copper Quarter, Swansea was chosen. After negotiating with the vendor an offer was accepted. The initial outlay was £33k. Andy decided to offer the apartment as a furnished let and target the more executive market.
After 2 weeks of decorating and furnishing the apartment it was ready to be let. The letting agent proposed a monthly rent of £775 per
month. During the first week that the apartment was on the market an offer was received from a company that wanted to place employees in the property who were working away from home. A 12 month contract was agreed at £775 per month. After paying the interest only mortgage payment and management fee the net monthly income is £576, which makes pension life affordable.
A few years after the purchase, the apartment’s value had increased, and after consulting with the mortgage advisor it was decided to release some of the capital growth from the apartment. The property was re-mortgaged and a lump sum of £11,625 was received.
The initial deposit is very much a part of Andy’s personal wealth and is available as a cash sum should he ever decide to sell the property.