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Year 5 disposal
⊞ View all 5
80/ 100
Strong
12.87% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- Monthly profit +£516/mo from completion — the no.1 reason to invest
- 12.87% return before costs — above-market
- 10.4% Rent by the room return before costs (net 5.68% after CapEx + bills) — conversion play
- 7.4% 5y IRR — strong total return on capital
Why to be cautious
- EPC E — must hit C by 2030 (~£6,000–£12,000)
- Leasehold 99yr — verify at solicitor
- Service charge unknown — could swing £100-300/mo
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
+£516/mo
Pays you every month, net of costs
Price
£220K
No local sold comps to compare
Return · IRR
7.4%/yr
Modest annualised return
Cash to get in
£92K
Deposit + fees + refurb
Return before costs on price 12.87%5-yr return on cash 44%Rent est. £2,359 (£1,878–£2,963)
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
Rates as of 20 May 2026Buy-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: £1,878–£2,963/mo · n=19
Financing
DepositYour cash in — the rest is the mortgage25% · £55,000
Standard 75% LTV for BTL
Mortgage rate5y fixed5.8%
5-year fixed at 75% LTV — 5.75% (as of 2026-05-20).
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 (£13,681–£25,537 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £165,000 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£516
after mortgage, operating costs & tax
Rent in£2,359/mo gross
£2,268/mo collected · £91/mo lost to voids
Where it goes
£894Mortgage£737Costs£516Your profit
£516/mo left as profit · 23% of rent kept
Mortgage£894
Costs£737
Management£236
Maintenance£67
Insurance£28
CapEx reserve£118
Voids + council tax£9
Service charge + ground rent£175
Ltd co. accounts£104
Tax£121
Profit+£516
Returns
Return before costs on price12.87%
Cash return on cash6.70%
Gross margin£1,531
Cash needed£92,441
Monthly profit payback15y
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.54
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 | £28,308 | £8,843 | £10,725 | £0 | £1,661 | £7,079 | £7,079 |
| Year 2 | £29,157 | £9,108 | £10,725 | £0 | £1,772 | £7,552 | £14,631 |
| Year 3 | £30,032 | £9,382 | £10,725 | £0 | £1,886 | £8,039 | £22,670 |
| Year 4 | £30,933 | £9,663 | £10,725 | £0 | £2,003 | £8,542 | £31,211 |
| Year 5 | £31,861 | £9,953 | £10,725 | £0 | £2,125 | £9,058 | £40,269 |
Disposal gain (gross)-£16,316
CGT£0
Net Disposal proceeds£236,825
What we verified
What we verified
33063 ok · 3 caution · 0 fail · 6 unknown
Legal & planning
Leasehold99 yr
Tenure & planning99 yr
Legal & planning
2 checks- TenureUnknown
- Lease lengthUnknown
Council planning restrictionUnknown
Council planning restrictionRent by the room conversion gatePlanning data
Conversion approvability
Per-property planning assessment
Likely approvable71% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
- this council refuses HMOs that would sandwich a family home between two HMOs — check both adjoining properties
- NO HMO concentration data for this council: neither a licensed register nor granted change-of-use decisions nearby. This is ABSENCE OF DATA, not absence of HMOs — verify with the council before relying on it
Rent by the room concentration nearby
≈0.0% within 40 m vs 10% policy
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
Rates as of May 2026
Building condition
Energy ratingE
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand E
MEES 2030 compliance
C required for new tenancies
FAIL
Upgrade to C
estimated cost
£6k–£12k
EPC band from listing · verify certificate before exchanging
Find EPC certificate →Cladding safety certificateNot stated on the listing
EWS1& cladding statusListing signal
OKInfoVerifyCritical
Severity
Inferred from listing text
Critical
Lender impact
Top-floor / penthouse listing — building almost certainly > 11 m. Must have EWS1 or PAS 9980 to be mortgageable; verify with vendor.
Most lenders refuse
A1/A2 = mortgageable · B1 = mortgageable with plan · B2 = remediation required
RICS EWS1 guidance →HeritageNot stated on the listing
Heritage& planning constraintsNHLE register
We don't ingest the NHLE bulk register, so we can't flag listed-building or conservation-area status for this address from our data alone. Use the official registry to verify before exchanging.
Area
Flood riskChecking…
FloodriskEA
Crime riskChecking…
Crimeriskpolice.uk
SchoolsChecking…
Schools& Ofsted catchmentGIAS register
No schools indexed for this postcode sector.
Investor
Tenant profileMixed demand
Tenant profilelikely cohortSO14 · 3 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University of Southampton · 4.3 km
Reason
Mixed-demand area without a single dominant tenant cohort. Local lettings agent can clarify.
Heuristic from postcode + bedrooms + nearest-university distance · verify locally
Refurb costEstimate ready
Refurb cost& works budgetQ1 2026 rates
New kitchen + bathroom + light replumb + decor.
Total estimate
3-bed · 2-bath · 1302 sqft
£34k–£66k
£ per sqft
building cost only
£26–£51
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£9,114–£16,926
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£14,322–£27,342
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingStandard rules
Price & sale history88d on marketno cuts yet
Strategy matrix
Rent it out wins — +£516/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 | 12.87% | +£516 | £92,441 | 43.6% | Low | Feasible |
| Housing-benefit rent | 5.85% | -£478 | £92,441 | -23.7% | Med | Feasible |
| Council lease | 0.00% | -£1,268 | £92,441 | -83.8% | Low | Feasible |
| Refurb & refinance | 12.87% | +£516 | £110,737 | 36.4% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£374 | £260,437 | 1% | Med | Feasible |
| Rent by the room | 10.40% | -£1,134 | £118,441 | -50.2% | — | 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
-£566/mo cash flow vs Rent it out if converted to Rent by the room
13.09% Return before costs on price converted vs 12.87% as-is
Room mix (3 lettable rooms)
1× Double @ £655/mo1× Single @ £526/mo1× En-suite @ £724/mo
≈ £1,906/mo gross room income
As-is Rent it out
Monthly profit+£690
Return before costs on price12.87%
Cash needed£66,898
If converted to Rent by the room
Monthly profit+£124
Return before costs on price13.09%
Cash needed£82,898
Δ vs Rent it out Monthly profit-£566
Show conversion detail
Conversion cost estimate
£44,000
Range: £38,000 – £52,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Likely approvable · 71% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
≈0.0% within 40 m vs 10% policy
£65,610–£122,810full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 2 × bathroom£11,400–£20,900
- Rewire£5,208–£9,114
- Replumb£3,906–£7,812
- Windows£13,020–£23,436
- Paint + decor£9,114–£16,926
- Flooring£14,322–£27,342
Based on 3268 HMO comps within 415 m
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Southampton City-wide HMO Article 4
≈0.0% within 40 m vs 10% policy
Tax treatment
Annual gross rent£28,308
Section 24 credit£0
Annual tax due£1,661
Post-tax Monthly profit annual£5,990
Exit costs
Projected sale price (5y · 2%/yr growth)£242,898
Capital gain (pre-CGT)£22,898
Sale costs (~2.5%)£6,072
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£40,269
Rates as of Oct 2024
Acquisition costs
£92,441cash neededPurchase price£220,000
Deposit (25%)£55,000
Stamp duty+5% additional-property surcharge£12,900
Refurb£18,241
Legal + survey£2,000
Mortgage fees£4,300
Total cash neededdeposit + costs (loan covers the rest)£92,441
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
CHAIN FREE
* Duplex Penthouse Apartment * Ocean Village Location * Three Balconies * Three Bedrooms * Under Croft Parking * Chain Free *
Set within the highly sought-after Charter House development on the fringes of Ocean Village, this exceptionally spacious three-bedroom penthouse apartment offers an impressive arrangement of accommodation across both the sixth and seventh floors, enjoying elevated southerly views towards Southampton waterside.
Upon entering the property,…
Floor plans
Listing metaonthemarket · Morris Dibben - Southampton
About this listing
88 days · OnTheMarketPrice history
5-year price trend
Monthly profit
+£516
Cash needed
£92K
Return after costs
6.70%
IRR
7.40%
Listed 88d ago
Charter House, 85 Canute Road, Southampton, Hampshire, SO14, Southampton, SO14
flat · 3 bed · 2 bath · 1,302 sqft
£220,000
est £2,359 · 12.87% gross
Chain freeLeasehold 99yrEPC E
1 / 5
80/100
Strong
12.87% — verify the rent + comps locally.
Monthly profit +£516/mo at 25% deposit @ 5.5%
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
12.87% Return before costs — above-market
10.4% Rent by the room Return before costs — conversion play
Energy rating E — Min. energy standard blocker by 2030 (~£6,000–£12,000 upgrade)
Price
£220K
Return before costs
12.87%
est rent £2,359/mo19 comps within 1.5 kmRange £1,878–£2,963/mo (Q1–Q3)
Bedrooms
3
2 bath
Energy rating
E
MEES (Minimum Energy Efficiency Standards) blocker by 2030
~£6,000–£12,000 upgrade
~£6,000–£12,000 upgrade
Deal flags1 issue
EPC E — upgrade by 2030
Must reach EPC C by 2030 to let on a new tenancy
Run the numbers
What-if calculator
Rates as of 20 May 2026Buy-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: £1,878–£2,963/mo · n=19
Financing
DepositYour cash in — the rest is the mortgage25% · £55,000
Standard 75% LTV for BTL
Mortgage rate5y fixed5.8%
5-year fixed at 75% LTV — 5.75% (as of 2026-05-20).
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 (£13,681–£25,537 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £165,000 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£516
after mortgage, operating costs & tax
Rent in£2,359/mo gross
£2,268/mo collected · £91/mo lost to voids
Where it goes
£894Mortgage£737Costs£516Your profit
£516/mo left as profit · 23% of rent kept
Mortgage£894
Costs£737
Management£236
Maintenance£67
Insurance£28
CapEx reserve£118
Voids + council tax£9
Service charge + ground rent£175
Ltd co. accounts£104
Tax£121
Profit+£516
Returns
Return before costs on price12.87%
Cash return on cash6.70%
Gross margin£1,531
Cash needed£92,441
Monthly profit payback15y
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.54
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 | £28,308 | £8,843 | £10,725 | £0 | £1,661 | £7,079 | £7,079 |
| Year 2 | £29,157 | £9,108 | £10,725 | £0 | £1,772 | £7,552 | £14,631 |
| Year 3 | £30,032 | £9,382 | £10,725 | £0 | £1,886 | £8,039 | £22,670 |
| Year 4 | £30,933 | £9,663 | £10,725 | £0 | £2,003 | £8,542 | £31,211 |
| Year 5 | £31,861 | £9,953 | £10,725 | £0 | £2,125 | £9,058 | £40,269 |
Rent by the room upside
What we verified
4116
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
TenureLeasehold years remaining99 yr
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPC~£6,000–£12,000 to upgrade to CE
EWS1External wall safety (cladding)Not stated on the listing
Refurb costBased on beds + baths + sqftEstimate available
Area▾
Crimepolice.uk · monthlyChecking…
SchoolsGIAS · OfstedChecking…
FloodEA Flood Map · England onlyChecking…
Investor profile▾
Tenant profileBeds + postcode heuristicFamily / Rent by the room
Rent by the room feasibilityMin 3 beds for C4 routeFeasible
Comparables
sold within 0.5 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,145
Annual rental tax£1,454
CGT yr 5£0 · company level
5y net total£40,269
Acquisition costs
25% deposit£55,000
Stamp duty£12,900
Refurb£18,241
Legal + survey£2,000
Mortgage + broker£4,300
Cash needed£92,441
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 copyOnTheMarket
CHAIN FREE
* Duplex Penthouse Apartment * Ocean Village Location * Three Balconies * Three Bedrooms * Under Croft Parking * Chain Free *
Set within the highly sought-after Charter House development on the fringes of Ocean Village, this exceptionally spacious three-bedroom penthouse apartment offers an impressive arrangement of accommodation across both the sixth and seventh floors, enjoying elevated southerly views towards Southampton waterside.
Upon entering the property,…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice