Good Deal or Not?

I’ve seen a nice little two-bedroomed flat just near where I live.
The good points:
• It is near the university
• You can easily walk into town form there
• It is first floor
• Reasonable decorative order
• Good size
• Vacant possession
• Allocated parking
The bad points:
• Furniture and carpets are ugly
• It is very near university accommodation with possible noise problems
• Parking is not secure
The deal:
• The property could be valued at £124,000 – some similar nearby are less, some more.
• I would be happy to offer £102,000 AND GET A MORTGAGE FOR £104,500. Neat little trick – I’ll tell you about it sometime. That would be £22,000 under “purchase price”.
• The mortgage I’d look for would be 85% loan to value, 4.99% interest, interest only, 12 year term.
• The mortgage lender would want 130% rental cover, based on the 4.99%.
• Expected rent: £575 pcm.
• Total fees would be £1620.
• Total monthly expenses, including Letting Agent’s fee, ground rent, maintenance, service charge £128.75
Well, does it stack up?