I would like to put in an offer for a 2-bed room flat. Sealed bid offers over 100k. Purchase price likely 109k. Property needs complete re-refurbishment , cost likely 8-10k, time about 2 months.
Re-sale value will be around 130k, but I plan to keep the property as a buy-to-let. Rent in these blocks are 650-700 month.

There are 5 or 6 identical blocks, all with 2-bed flats and the average flat price 2003-2006 has been £123 409 (only one sold 2006). The cheapest being sold for £ 115000.

I have £30000 cash to use, but it is all I got so I would preferable use less than that from my own pocket. Can anybody help with suggestions for finance options for this deal, also don't mind comments on the bid I have in mind £109k, too high? too low?

Also, one last question I've been told by the agent that if I want to put in a sealed bid I first have to put in a bid for £100k just to show that I'm interested. Is this common?

Thankful for any comments/help. :?

Hi Martina,

Bid £100K MV -£115
If you work on a
-10% buying and selling costs - £10K
-Refurb - £10K
- mortgage interest payment - £2K

You're left with negative equity if you chose to sell. However if you let it out you'd have to leave a deposit of 15% to get a BTL mortgage on the MV