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Year 5 disposal
⊞ View all 2
79/ 100
Solid
Real 16.45% Rent by the room return before costs with manageable risks.
Why it works
- 10.29% return before costs — above-market
- 16.4% Rent by the room return before costs (net 8.03% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- Tenanted in situ — instant Monthly profit from completion
Why to be cautious
- No rent comparables — estimate is a rule-of-thumb fallback, not market data. Verify the rent locally before offering.
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
+£152/mo
Barely breaks even each month
Price
£120K
No local sold comps to compare
Return · IRR
3.8%/yr
Modest annualised return
Cash to get in
£56K
Deposit + fees + refurb
Return before costs on price · Rent by the room 16.45%5-yr return on cash 24%Rent est. £1,029 (£902–£1,174)
How we define each return: On price — gross yield = annual rent ÷ purchase price. On cost — net yield ÷ total project cost (price + refurb + fees). On cash — cash-on-cash & ROI ÷ the actual cash you put in (deposit + costs).
What-if calculator
Buy-to-Let. Standard rental on an Assured Shorthold Tenancy. Single household, market rent, paid monthly direct to landlord (or via agent). (hover any strategy tab for pros + cons)
Offer (£)
Monthly rent (£)
Local comp range: £902–£1,174/mo · n=20
Financing
DepositYour cash in — the rest is the mortgage25% · £30,000
Standard 75% LTV for BTL
Mortgage rate5y fixed5.5%
5-year fixed (market average) — 5.50% (as of 2026-05).
Mortgage term (years)
Stress rate6.5%
BoE base + 2pp stress (6.5%)
Acquisition costs
Refurb (£)
Per-property refurb estimate from the element rate-card model (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £90,000 loan + £1,000 booking fee
Running costs
Management10%
Typical BTL agency rate
Void weeks
Typical voids for BTL
Insurance (£/mo)
Typical BTL building+landlord cover for sub-£200K
Maintenance (£/mo)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
+£152
after mortgage, operating costs & tax
Rent in£1,029/mo gross
£989/mo collected · £40/mo lost to voids
Where it goes
£469Mortgage£333Costs
£152/mo left as profit · 15% of rent kept
Mortgage£469
Costs£333
Management£103
Maintenance£50
Insurance£20
CapEx reserve£51
Voids + council tax£5
Ltd co. accounts£104
Tax£36
Profit+£152
Returns
Return before costs on price10.29%
Cash return on cash3.27%
Gross margin£656
Cash needed£55,611
Monthly profit payback30y 7m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.03
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Year-by-year Monthly profit (5-yr horizon)
Net Monthly profit after tax. Rent + costs compound at their growth rates; mortgage principal amortises year-by-year for repayment loans.
Mortgage paydownRent profitbefore price growth
Full year-by-year breakdown
| Year | Gross Rent | Op Costs | Mortgage | Equity Built | Tax | Net | Cumulative |
|---|---|---|---|---|---|---|---|
| Year 1 | £12,348 | £4,001 | £5,625 | £0 | £517 | £2,205 | £2,205 |
| Year 2 | £12,718 | £4,121 | £5,625 | £0 | £565 | £2,408 | £4,613 |
| Year 3 | £13,100 | £4,244 | £5,625 | £0 | £614 | £2,617 | £7,230 |
| Year 4 | £13,493 | £4,372 | £5,625 | £0 | £664 | £2,832 | £10,062 |
| Year 5 | £13,898 | £4,503 | £5,625 | £0 | £716 | £3,054 | £13,116 |
Disposal gain (gross)-£13,634
CGT£0
Net Disposal proceeds£129,177
What we verified
What we verified
50065 ok · 0 caution · 0 fail · 6 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
2 checks- TenureUnknown
- Lease lengthUnknown
Building condition
Energy ratingC
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand C
MEES 2030 compliance
C required for new tenancies
PASS
EPC band from listing · verify certificate before exchanging
Find EPC certificate →Cladding safety certificateNot stated on the listing
HeritageNot stated on the listing
Area
Flood riskNo location
Crime riskNo location
SchoolsNo postcode
Investor
Tenant profileUnknown
Refurb costEstimate ready
Refurb cost& works budgetQ1 2026 rates
New kitchen + bathroom + light replumb + decor.
Total estimate
3-bed · 1-bath · 990 sqft
£25k–£49k
£ per sqft
building cost only
£25–£49
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£6,930–£12,870
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£10,890–£20,790
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingStandard rules
Price & sale history543d on market1 price change
Sale price historythis address, HM Land RegistryPrice-Paid Data
Asking vs last sale
£94,950 in 2006 → £120,000 asking
+26.4%in 20y
- 2006£94,950+70.6% in 3y
- 2003£55,650—
HM Land Registry · Price-Paid Data (Open Government Licence). Growth percentages are nominal — not adjusted for inflation or local market movement.
Strategy matrix
Rent it out wins — +£152/mo · level with Refurb & refinance
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| ⭐ Rent it out | 10.29% | +£152 | £55,611 | 23.6% | Low | Feasible |
| Housing-benefit rent | 7.38% | -£97 | £55,611 | -1.5% | Med | Feasible |
| Council lease | 0.00% | -£643 | £55,611 | -70.5% | Low | Feasible |
| Refurb & refinance | 10.29% | +£152 | £67,655 | 19.4% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£174 | £148,855 | -2% | Med | Feasible |
| Rent by the room | 16.45% | -£539 | £80,250 | -30.6% | — | Feasible |
Ready to move on this deal?
Generates an offer pack with your numbers & sources — take it to the agent.
Pro analysis — outcome range, stress tests & portfolio impact
Local lettings demanddays-to-let · supply now · trend
Rent by the room conversion upside
+£308/mo cash flow vs Rent it out if converted to Rent by the room
24.00% Return before costs on price converted vs 10.29% as-is
£120k → 4-bed HMO @ ~£459/room: £1,790 pcm gross, ~£1,025 pcm net (8.9% net on £138k all-in incl. ~£10k works)
medium confidence
Unlocks ~£6,580/yr extra rent
3 → 4 lettable rooms
Potential, not guaranteed (subject to planning + regs). Estimate from the floorplan (kitchen size assumed) — verify room sizes against the floorplan before offering.
How we calculated this
floorplan shows 5 habitable rooms (3 beds + 2 reception(s)) in 85 m²; convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 4 lettable rooms (0 double, 1 single); sized to Newcastle-under-Lyme adopted standard (6.51/11 m²; Newcastle-under-Lyme BC HMO standards - shared houses (council web pages, undated)); kitchen 6.9 m² is below the ~7.0 m² standard for 4 occupants — extend/relocate kitchen within the works; adds ~£548/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted)
🔒 Room-add markup · Pro
Pro members see the floorplan with every convertible room outlined in green. Verify room sizes before offering.
3 → 4 bed HMO+1 single
Sized to Newcastle-under-Lyme's adopted HMO standards
Projections use documented assumptions (local room rates, typical conversion costs, 75% LTV at 5.5%, indicative regional valuation yields) and each council’s published HMO standards. Not financial advice. Verify room sizes, licensing and planning with the council and a surveyor before purchase.
Room mix (3 lettable rooms)
2× Double @ £606/mo1× Single @ £433/mo
≈ £1,644/mo gross room income
As-is Rent it out
Monthly profit+£132
Return before costs on price10.29%
Cash needed£41,898
If converted to Rent by the room
Monthly profit+£441
Return before costs on price24.00%
Cash needed£57,898
Δ vs Rent it out Monthly profit+£308
+1 room (4 total)
Monthly profit+£320
Return before costs on price21.93%
Cash needed£67,898
Extra rent+£548/mo
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£38,307–£72,000full refurb + room split
⚠️ Capped at 60% of £120,000 asking (£72,000). Raw model: £48,990–£92,080. Verify with a surveyor before offering.
What's in this cost
- Kitchen£6,756–£13,512
- 1 × bathroom£4,457–£8,171
- Rewire£3,096–£5,419
- Replumb£2,322–£4,645
- Windows£7,741–£13,934
- Paint + decor£5,419–£10,063
- Flooring£8,515–£16,256
Based on 2080 HMO comps within 5.0 km
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
No coordinates available — verify address with the agent.
Transport score100 / 100
Schools & catchment3 schools nearby
Nearby schoolsOfsted-rated, nearest first3 of 5
- GoodThe Orme AcademySecondary · Academy sponsor led · ST5 9JU
- Not ratedMerryfields SchoolNot applicable · Academy special converter · ST5 9NY
- Not ratedHempstalls Primary SchoolPrimary · Academy converter · ST5 9LH
Ofsted · postcode-area match. Catchment areas vary year to year — verify with the local council before relying for school admissions.
Tax treatment
Annual gross rent£12,348
Section 24 credit£0
Annual tax due£517
Post-tax Monthly profit annual£1,730
Exit costs
Projected sale price (5y · 2%/yr growth)£132,490
Capital gain (pre-CGT)£12,490
Sale costs (~2.5%)£3,312
CGT due (Ltd Co 25%)£0
No personal CGT — the gain is taxed at the company level (corporation tax) when the SPV disposes of the property.
Net 5y Monthly profit after CGT£13,116
Rates as of Oct 2024
Acquisition costs
£55,611cash neededPurchase price£120,000
Deposit (25%)£30,000
Stamp duty+5% additional-property surcharge£6,000
Refurb£15,111
Legal + survey£1,700
Mortgage fees£2,800
Total cash neededdeposit + costs (loan covers the rest)£55,611
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
For sale is this terraced house located in the outskirts of Newcastle underLyme town centre. The property benefits from excellent public transport links and is in close proximity to local amenities, making it an ideal investment opportunity.
The house is currently let with tenants in situ, and offers a potential yield of 8%, making it a fantastic addition to any investor's portfolio. It is comprised of three bedrooms, a modern kitchen, a welcoming reception room, and a famil…
Listing metarightmove · Your Move
About this listing
543 days · RightmovePrice history
No price history available.
Monthly profit
+£152
Cash needed
£56K
Return after costs
3.27%
IRR
3.79%
Listed 543d ago
3 bedroom terraced house for sale
✓ Verified address
terraced · 3 bed · 1 bath
£120,000
est £1,029 · 10.29% gross
EPC C
79/100
Solid
Real 16.45% — fundamentals work.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
10.29% Return before costs — above-market
16.4% Rent by the room Return before costs — conversion play
Price
£120K
Return before costs (best)
16.45%
Rent by the room
Bedrooms
3
1 bath
Energy rating
C
Energy rating
Run the numbers
What-if calculator
Buy-to-Let. Standard rental on an Assured Shorthold Tenancy. Single household, market rent, paid monthly direct to landlord (or via agent). (hover any strategy tab for pros + cons)
Offer (£)
Monthly rent (£)
Local comp range: £902–£1,174/mo · n=20
Financing
DepositYour cash in — the rest is the mortgage25% · £30,000
Standard 75% LTV for BTL
Mortgage rate5y fixed5.5%
5-year fixed (market average) — 5.50% (as of 2026-05).
Mortgage term (years)
Stress rate6.5%
BoE base + 2pp stress (6.5%)
Acquisition costs
Refurb (£)
Per-property refurb estimate from the element rate-card model (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £90,000 loan + £1,000 booking fee
Running costs
Management10%
Typical BTL agency rate
Void weeks
Typical voids for BTL
Insurance (£/mo)
Typical BTL building+landlord cover for sub-£200K
Maintenance (£/mo)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
+£152
after mortgage, operating costs & tax
Rent in£1,029/mo gross
£989/mo collected · £40/mo lost to voids
Where it goes
£469Mortgage£333Costs
£152/mo left as profit · 15% of rent kept
Mortgage£469
Costs£333
Management£103
Maintenance£50
Insurance£20
CapEx reserve£51
Voids + council tax£5
Ltd co. accounts£104
Tax£36
Profit+£152
Returns
Return before costs on price10.29%
Cash return on cash3.27%
Gross margin£656
Cash needed£55,611
Monthly profit payback30y 7m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.03
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Year-by-year Monthly profit (5-yr horizon)
Net Monthly profit after tax. Rent + costs compound at their growth rates; mortgage principal amortises year-by-year for repayment loans.
Mortgage paydownRent profitbefore price growth
Full year-by-year breakdown
| Year | Gross Rent | Op Costs | Mortgage | Equity Built | Tax | Net | Cumulative |
|---|---|---|---|---|---|---|---|
| Year 1 | £12,348 | £4,001 | £5,625 | £0 | £517 | £2,205 | £2,205 |
| Year 2 | £12,718 | £4,121 | £5,625 | £0 | £565 | £2,408 | £4,613 |
| Year 3 | £13,100 | £4,244 | £5,625 | £0 | £614 | £2,617 | £7,230 |
| Year 4 | £13,493 | £4,372 | £5,625 | £0 | £664 | £2,832 | £10,062 |
| Year 5 | £13,898 | £4,503 | £5,625 | £0 | £716 | £3,054 | £13,116 |
Rent by the room upside
What we verified
6004
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
TenureTenure typeFreehold
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPCEnergy efficiency ratingC
EWS1External wall safety (cladding)Not stated on the listing
Refurb costBased on beds + baths + sqftEstimate available
Area▾
Crimepolice.uk · monthlyNo location
SchoolsGIAS · OfstedNo postcode
FloodEA Flood Map · England onlyNo location
Investor profile▾
Tenant profileBeds + postcode heuristicUnknown
Rent by the room feasibilityMin 3 beds for C4 routeFeasible
TenantMonthly profit from day oneIn situ
Comparables
sold within 0.5 miLoading nearby sold…
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,125
Annual rental tax£427
CGT yr 5£0 · company level
5y net total£13,116
Acquisition costs
25% deposit£30,000
Stamp duty£6,000
Refurb£15,111
Legal + survey£1,700
Mortgage + broker£2,800
Cash needed£55,611
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
Make an offer
Pro analysis — outcome range, stress tests & portfolio impact
Your notes
Description& agent copyRightmove
For sale is this terraced house located in the outskirts of Newcastle underLyme town centre. The property benefits from excellent public transport links and is in close proximity to local amenities, making it an ideal investment opportunity.
The house is currently let with tenants in situ, and offers a potential yield of 8%, making it a fantastic addition to any investor's portfolio. It is comprised of three bedrooms, a modern kitchen, a welcoming reception room, and a famil…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice