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Year 5 disposal
84/ 100
Strong
13.74% Rent by the room return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 9.45% return before costs — above-market
- 13.7% Rent by the room return before costs (net 7.14% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- Service charge unknown — could swing £100-300/mo
- EPC band not stated — verify the certificate before offering (2030 MEES minimum is band C).
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
+£15/mo
Barely breaks even each month
Price
£150K
No local sold comps to compare
Return · IRR
0.6%/yr
Modest annualised return
Cash to get in
£68K
Deposit + fees + refurb
Return before costs on price · Rent by the room 13.74%5-yr return on cash 7%Rent est. £1,181 (£1,159–£1,203)
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: £1,159–£1,203/mo · n=85
Financing
DepositYour cash in — the rest is the mortgage25% · £37,500
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 (£13,223–£24,682 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £112,500 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
+£15
after mortgage, operating costs & tax
Rent in£1,181/mo gross
£1,136/mo collected · £45/mo lost to voids
Where it goes
£586Mortgage£531Costs
£15/mo left as profit · 1% of rent kept
Mortgage£586
Costs£531
Management£118
Maintenance£50
Insurance£20
CapEx reserve£59
Voids + council tax£5
Service charge + ground rent£175
Ltd co. accounts£104
Tax£4
Profit+£15
Returns
Return before costs on price9.45%
Cash return on cash0.26%
Gross margin£604
Cash needed£68,380
Monthly profit payback100+ yrs
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.86
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 | £14,172 | £6,374 | £7,031 | £0 | £146 | £620 | £620 |
| Year 2 | £14,597 | £6,566 | £7,031 | £0 | £190 | £810 | £1,431 |
| Year 3 | £15,035 | £6,762 | £7,031 | £0 | £236 | £1,005 | £2,436 |
| Year 4 | £15,486 | £6,965 | £7,031 | £0 | £283 | £1,207 | £3,643 |
| Year 5 | £15,951 | £7,174 | £7,031 | £0 | £332 | £1,413 | £5,056 |
Disposal gain (gross)-£16,158
CGT£0
Net Disposal proceeds£161,472
What we verified
What we verified
22072 ok · 2 caution · 0 fail · 7 unknown
Legal & planning
LeaseholdLeasehold
Tenure & planningLeasehold
Legal & planning
2 checks- TenureUnknown
- Lease lengthUnknown
Building condition
Energy ratingUnknown
EPC& 2030 deadlineEPC register
EPC band not available in the listing. The 2030 MEES minimum is band C — verify the certificate before offering.
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 history177d on marketno cuts yet
Strategy matrix
Rent it out wins — +£15/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 | 9.45% | +£15 | £68,380 | 7.4% | Low | Feasible |
| Housing-benefit rent | 4.74% | -£498 | £68,380 | -39.0% | Med | Feasible |
| Council lease | 0.00% | -£935 | £68,380 | -83.9% | Low | Feasible |
| Refurb & refinance | 9.45% | +£15 | £82,932 | 6.1% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£349 | £184,682 | -2% | Med | Feasible |
| Rent by the room | 13.74% | -£809 | £93,750 | -43.7% | — | 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
+£208/mo cash flow vs Rent it out if converted to Rent by the room
19.20% Return before costs on price converted vs 9.45% as-is
£150k → 4-bed HMO @ ~£537/room: £2,144 pcm gross, ~£1,227 pcm net (8.3% net on £178k all-in incl. ~£17k works); needs +1 bathroom
medium confidence
Unlocks ~£6,868/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 55 m²; convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 4 lettable rooms (1 double, 0 single); sized to Wigan adopted standard (6.51/10.22 m²; Wigan Council HMO Licensing Standards v1.1, June 2025); adds ~£572/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); Article 4 — planning permission needed
🔒 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 double
+1 bathroom needed
Sized to Wigan'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 @ £564/mo1× En-suite @ £590/mo
≈ £1,717/mo gross room income
As-is Rent it out
Monthly profit+£137
Return before costs on price9.45%
Cash needed£49,398
If converted to Rent by the room
Monthly profit+£346
Return before costs on price19.20%
Cash needed£65,398
Δ vs Rent it out Monthly profit+£208
+1 room (4 total)
Monthly profit+£281
Return before costs on price18.31%
Cash needed£75,398
Extra rent+£572/mo
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Uncertain · 38% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- local council HMO approval rate 34% (41 decisions)
≈0.0% within 100 m vs 10% policy
Council HMO policy not curated — assessed against a 10% / 100 m default; a low/absent count reflects register coverage, not zero nearby HMOs.
£47,883–£90,000full refurb + room split
⚠️ Capped at 60% of £150,000 asking (£90,000). Raw model: £48,990–£92,080. Verify with a surveyor before offering.
What's in this cost
- Kitchen£8,445–£16,890
- 1 × bathroom£5,571–£10,214
- Rewire£3,871–£6,773
- Replumb£2,903–£5,806
- Windows£9,676–£17,417
- Paint + decor£6,773–£12,579
- Flooring£10,644–£20,320
Based on 139 HMO comps within 564 m
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
No coordinates available — verify address with the agent.
Transport score100 / 100
Wigan City-wide HMO Article 4
≈0.0% within 100 m vs 10% policy
Council HMO policy not curated — assessed against a 10% / 100 m default; a low/absent count reflects register coverage, not zero nearby HMOs.
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- GoodBeech Hill Community Primary SchoolPrimary · Community school · WN6 7PT
- Requires improvementWigan St Andrew's CofE Junior and Infant SchoolPrimary · Voluntary aided school · WN6 7AU
- Not ratedSacred Heart Catholic Primary SchoolPrimary · Voluntary aided school · WN6 7RH
- Not ratedSt John Fisher Catholic High SchoolSecondary · Voluntary aided school · WN6 7RN
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£14,172
Section 24 credit£0
Annual tax due£146
Post-tax Monthly profit annual£75
Exit costs
Projected sale price (5y · 2%/yr growth)£165,612
Capital gain (pre-CGT)£15,612
Sale costs (~2.5%)£4,140
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£5,056
Rates as of Oct 2024
Acquisition costs
£68,380cash neededPurchase price£150,000
Deposit (25%)£37,500
Stamp duty+5% additional-property surcharge£8,000
Refurb£17,630
Legal + survey£2,000
Mortgage fees£3,250
Total cash neededdeposit + costs (loan covers the rest)£68,380
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
Now available for sale, with no onward chain – this charming three bedroom traditional end terraced home is situated in the heart of Springfield, within walking distance of excellent local schools shops and Robin Retail Park, as well as within easy reach of the M6 and M58 Motorways.
The accommodation is briefly comprised of; entrance vestibule, leading into the spacious front living room. The dining room is situated to the rear of the property, with French doors flooding thi…
Listing metarightmove · Morgan H Lewis
About this listing
177 days · RightmovePrice history
No price history available.
Monthly profit
+£15
Cash needed
£68K
Return after costs
0.26%
IRR
0.59%
Listed 177d ago
3 bedroom terraced house for sale
terraced · 3 bed · 1 bath
£150,000
est £1,181 · 9.45% gross
84/100
Strong
13.74% Rent by the room strategy — market rent unverified, verify locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
9.45% Return before costs — above-market
13.7% Rent by the room Return before costs — conversion play
Price
£150K
Return before costs (best)
13.74%
Rent by the room
Bedrooms
3
1 bath
Energy rating
—
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: £1,159–£1,203/mo · n=85
Financing
DepositYour cash in — the rest is the mortgage25% · £37,500
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 (£13,223–£24,682 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £112,500 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
+£15
after mortgage, operating costs & tax
Rent in£1,181/mo gross
£1,136/mo collected · £45/mo lost to voids
Where it goes
£586Mortgage£531Costs
£15/mo left as profit · 1% of rent kept
Mortgage£586
Costs£531
Management£118
Maintenance£50
Insurance£20
CapEx reserve£59
Voids + council tax£5
Service charge + ground rent£175
Ltd co. accounts£104
Tax£4
Profit+£15
Returns
Return before costs on price9.45%
Cash return on cash0.26%
Gross margin£604
Cash needed£68,380
Monthly profit payback100+ yrs
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.86
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 | £14,172 | £6,374 | £7,031 | £0 | £146 | £620 | £620 |
| Year 2 | £14,597 | £6,566 | £7,031 | £0 | £190 | £810 | £1,431 |
| Year 3 | £15,035 | £6,762 | £7,031 | £0 | £236 | £1,005 | £2,436 |
| Year 4 | £15,486 | £6,965 | £7,031 | £0 | £283 | £1,207 | £3,643 |
| Year 5 | £15,951 | £7,174 | £7,031 | £0 | £332 | £1,413 | £5,056 |
Rent by the room upside
What we verified
3105
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
TenureTenure typeLeasehold
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPCPostcode estimate — check the registerNot stated on the listing
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
Comparables
sold within 0.5 miLoading nearby sold…
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,406
Annual rental tax£42
CGT yr 5£0 · company level
5y net total£5,056
Acquisition costs
25% deposit£37,500
Stamp duty£8,000
Refurb£17,630
Legal + survey£2,000
Mortgage + broker£3,250
Cash needed£68,380
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
Now available for sale, with no onward chain – this charming three bedroom traditional end terraced home is situated in the heart of Springfield, within walking distance of excellent local schools shops and Robin Retail Park, as well as within easy reach of the M6 and M58 Motorways.
The accommodation is briefly comprised of; entrance vestibule, leading into the spacious front living room. The dining room is situated to the rear of the property, with French doors flooding thi…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice