Acquisition Calculator
Overview
When you're planning to buy one of your prospects, you'll need to consider the costs involved in purchasing the property and, in many cases, arranging finance.
Deal Finder's Acquisition Calculator allows you to enter the costs and fees associated with buying a property. These figures are then used when calculating future yield and return for the plan.
Some figures are estimated based on market rates, but you can adjust these to match the costs or rates that apply to your purchase.
Getting Started
Financial calculations are set up per plan, per property.
Start by opening the prospect from your Shortlist and select the Plan tab.
The Plans Overview shows each financial plan you've stored for the prospect.
Click Details to open an existing plan, or Add Plan to create a new one.
Investment Plan
The first part of the plan covers your initial investment in the property.
Price
Enter the final price you expect to pay for the property.
Second Home
Select this if you do not intend to live in the property.
A second home can incur additional stamp duty surcharges depending on the value of the property. Different council tax rates may also apply.
If you are a live-in landlord, the property will be your primary residence and these rates will not usually apply.
Non-resident
Select this if you are not resident in the UK.
Additional fees and taxes may apply to non-UK residents.
Expenses
Add any expenses associated with purchasing the property.
Do not include repair or refurbishment costs here. These are covered separately in the plan.
Finance Type
Choose how you intend to finance the purchase:
- Cash
- Mortgage
- Bridge
If you're paying for the property entirely in cash, there is nothing else to enter in this section.
If you select Mortgage or Bridge, additional finance fields will be displayed.
Mortgage Calculation
If you select Mortgage as the finance type, you'll be prompted to enter information about the mortgage.
PaTMa automatically fills in estimated fees, but you can adjust these to match the rates and terms offered by your lender.
Mortgage Rate
Enter the interest rate on the mortgage.
Mortgage Fixed Fee
Enter any fixed fees required by the lender.
Mortgage Percentage Fee
Enter any additional percentage-based costs charged by the lender.
Max LTV
Enter the maximum loan-to-value permitted.
This represents how much you can borrow against the value of the property.
Rental Cover
For buy-to-let properties, the amount you can borrow may be restricted based on the rental income from the property.
Stress Rate
Enter the interest rate used to calculate rental cover.
Roll Up Mortgage Fees
Select this option to include the mortgage fees in the total mortgage.
Bridge Calculation
If you select Bridge as the finance type, you'll be prompted to enter information about the bridging loan.
Bridging loans are short-term finance and are often used when a property needs to be purchased before another property is sold or when the purchase is expected to be completed and repaid quickly.
Bridge Rate
Enter the interest rate charged per month on the bridging loan.
Bridge Facility Fee
Enter the percentage fee charged by the lender for arranging the bridging facility.
Bridge Exit Fee
Enter any additional fee charged when the bridging loan is repaid.
Bridge Fixed Fee
Enter any fixed costs associated with the bridging loan that are not related to repayment.
Max LTV
Enter the maximum loan-to-value permitted.
This represents how much you can borrow against the value of the property.
Other Fields
Your plan can also include refurbishment costs, refinancing and expected revenue.
Saving the Plan
The calculations update as you make changes to the plan.
Once you're happy with the figures, click Save Plan to store the plan and any changes you've made.