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Year 5 disposal
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36/ 100
Weak
8.97% return before costs — verify the rent + comps locally.
Why it works
- 8.97% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- Leasehold 88yr — verify at solicitor
- Service charge unknown — could swing £100-300/mo
- No rent comparables — estimate is a rule-of-thumb fallback, not market data. Verify the rent locally before offering.
- 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
+£64/mo
Barely breaks even each month
Price
£230K
No local sold comps to compare
Return · IRR
1.1%/yr
Modest annualised return
Cash to get in
£88K
Deposit + fees + refurb
Return before costs on price 8.97%5-yr return on cash 12%Rent est. £1,719 (£1,614–£1,831)
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: £1,614–£1,831/mo · n=73
Financing
DepositYour cash in — the rest is the mortgage25% · £57,500
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 (£8,073–£15,070 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £172,500 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£64
after mortgage, operating costs & tax
Rent in£1,719/mo gross
£1,653/mo collected · £66/mo lost to voids
Where it goes
£934Mortgage£639Costs
£64/mo left as profit · 4% of rent kept
Mortgage£934
Costs£639
Management£172
Maintenance£67
Insurance£28
CapEx reserve£86
Voids + council tax£7
Service charge + ground rent£175
Ltd co. accounts£104
Tax£15
Profit+£64
Returns
Return before costs on price8.97%
Cash return on cash0.87%
Gross margin£1,014
Cash needed£88,314
Monthly profit payback100+ yrs
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.77
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 | £20,628 | £7,672 | £11,213 | £0 | £331 | £1,413 | £1,413 |
| Year 2 | £21,247 | £7,902 | £11,213 | £0 | £405 | £1,727 | £3,140 |
| Year 3 | £21,884 | £8,139 | £11,213 | £0 | £481 | £2,052 | £5,192 |
| Year 4 | £22,541 | £8,383 | £11,213 | £0 | £560 | £2,385 | £7,577 |
| Year 5 | £23,217 | £8,635 | £11,213 | £0 | £640 | £2,730 | £10,307 |
Disposal gain (gross)-£8,774
CGT£0
Net Disposal proceeds£247,590
What we verified
What we verified
23062 ok · 3 caution · 0 fail · 6 unknown
Legal & planning
Leasehold88 yr
Leaseholdmaterial factsListing extract
Lease remaining
Mortgageable ≥80yr
88 yr
Lease shortening — 88 years remaining
Still mortgageable today, but plan to extend before it dips below 80. Marriage-value premium kicks in below 80 years.
Extracted from listing description · verify with solicitor
Tenure & planning88 yr
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
EWS1& cladding statusListing signal
OKInfoVerifyCritical
Severity
Inferred from listing text
Verify
Lender impact
No EWS1 / floor info in description. Buildings > 11 m need EWS1 or PAS 9980 — confirm height + status with the agent before offering.
Verify with lender
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 cohortRM3 · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
Queen Mary · 19.5 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
2-bed · 1-bath · 945 sqft · London ×1.4
£32k–£60k
£ per sqft
building cost only
£33–£64
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£4,640–£10,440
- 1 × bathroom · Full strip + retile£4,200–£8,400
- Paint + decor£9,450–£17,010
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£13,230–£24,570
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history80d on marketno cuts yet
Strategy matrix
Rent it out wins — +£64/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 | 8.97% | +£64 | £88,314 | 11.7% | Low | Feasible |
| Housing-benefit rent | 8.07% | -£159 | £88,314 | 0.7% | Med | Feasible |
| Council lease | 0.00% | -£1,309 | £88,314 | -90.5% | Low | Feasible |
| Refurb & refinance | 8.97% | +£64 | £104,120 | 9.9% | Med | Feasible |
| Short-stay let / Airbnb | 11.89% | -£12 | £88,314 | 2.7% | High | Feasible |
| Buy, improve & sell | 0.00% | -£374 | £260,670 | 5% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Short-let (SA) context257 active short-lets nearby
Short-let market context
- 257 active short-let listings in this postcode
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
Local lettings demandby strategyLive area data
Short-stay let25% occupancy
£304/night ADR
Based on 19 short-let comps nearby
Rent by the room conversion upside
-£145/mo cash flow vs Rent it out if converted to Rent by the room
12.52% Return before costs on price converted vs 8.97% as-is
As-is Rent it out
Monthly profit+£238
Return before costs on price8.97%
Cash needed£69,398
If converted to Rent by the room
Monthly profit+£93
Return before costs on price12.52%
Cash needed£85,398
Δ vs Rent it out Monthly profit-£145
Show conversion detail
Cannot Rent by the room:Only 2 bed — too small for an HMO (3+ unrelated tenants from 2+ households) without major reconfiguration.
Conversion cost estimate
£61,600
Range: £53,200 – £72,800
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£59,220–£110,625full refurb + room split
What's in this cost
- Kitchen£10,440–£20,880
- 1 × bathroom£7,200–£13,200
- Rewire£4,725–£8,505
- Replumb£3,780–£7,560
- Windows£10,395–£18,900
- Paint + decor£9,450–£17,010
- Flooring£13,230–£24,570
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
Transport score90 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Tax treatment
Annual gross rent£20,628
Section 24 credit£0
Annual tax due£331
Post-tax Monthly profit annual£619
Exit costs
Projected sale price (5y · 2%/yr growth)£253,939
Capital gain (pre-CGT)£23,939
Sale costs (~2.5%)£6,348
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£10,307
Rates as of Oct 2024
Acquisition costs
£88,314cash neededPurchase price£230,000
Deposit (25%)£57,500
Stamp duty+5% additional-property surcharge£13,600
Refurb£10,764
Legal + survey£2,000
Mortgage fees£4,450
Total cash neededdeposit + costs (loan covers the rest)£88,314
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
• BEAUTIFULLY PRESENTED TWO BEDROOM APARTMENT • PERFECT FOR FIRST TIME BUYERS • ALLOCATED PARKING SPACE • SEPARATE KITCHEN • 0.6 MILES TO HAROLD WOOD STATION • COUNCIL TAX BAND: D
Lease Remaining: 88 years
Floor plans
Listing metaonthemarket · Balgores - Romford
About this listing
80 days · OnTheMarketPrice history
5-year price trend
Monthly profit
+£64
Cash needed
£88K
Return after costs
0.87%
IRR
1.15%
Listed 80d ago
Messant Close, Harold Wood, Romford, RM3, Romford, RM3
flat · 2 bed · 1 bath
£230,000
est £1,719 · 8.97% gross
Leasehold 88yr
1 / 5
36/100
Marginal
8.97% — verify the rent + comps locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
8.97% Return before costs — above-market
Lease 88 yrs — extend before exit
Price
£230K
Return before costs
8.97%
est rent £1,719/monot enough comparablesRange £1,614–£1,831/mo (Q1–Q3)
Bedrooms
2
1 bath
Energy rating
—
Energy rating
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: £1,614–£1,831/mo · n=73
Financing
DepositYour cash in — the rest is the mortgage25% · £57,500
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 (£8,073–£15,070 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £172,500 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£64
after mortgage, operating costs & tax
Rent in£1,719/mo gross
£1,653/mo collected · £66/mo lost to voids
Where it goes
£934Mortgage£639Costs
£64/mo left as profit · 4% of rent kept
Mortgage£934
Costs£639
Management£172
Maintenance£67
Insurance£28
CapEx reserve£86
Voids + council tax£7
Service charge + ground rent£175
Ltd co. accounts£104
Tax£15
Profit+£64
Returns
Return before costs on price8.97%
Cash return on cash0.87%
Gross margin£1,014
Cash needed£88,314
Monthly profit payback100+ yrs
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.77
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Short-let (SA) context257 active short-lets nearby
Short-let market context
- 257 active short-let listings in this postcode
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 | £20,628 | £7,672 | £11,213 | £0 | £331 | £1,413 | £1,413 |
| Year 2 | £21,247 | £7,902 | £11,213 | £0 | £405 | £1,727 | £3,140 |
| Year 3 | £21,884 | £8,139 | £11,213 | £0 | £481 | £2,052 | £5,192 |
| Year 4 | £22,541 | £8,383 | £11,213 | £0 | £560 | £2,385 | £7,577 |
| Year 5 | £23,217 | £8,635 | £11,213 | £0 | £640 | £2,730 | £10,307 |
Rent by the room upside
What we verified
2307
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining88 yr
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 · monthlyChecking…
SchoolsGIAS · OfstedChecking…
FloodEA Flood Map · England onlyChecking…
Investor profile▾
Tenant profileBeds + postcode heuristicFamily let
Rent by the room feasibilityMin 3 beds for C4 routeBelow threshold
Comparables
sold within 0.5 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,243
Annual rental tax£181
CGT yr 5£0 · company level
5y net total£10,307
Acquisition costs
25% deposit£57,500
Stamp duty£13,600
Refurb£10,764
Legal + survey£2,000
Mortgage + broker£4,450
Cash needed£88,314
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
• BEAUTIFULLY PRESENTED TWO BEDROOM APARTMENT • PERFECT FOR FIRST TIME BUYERS • ALLOCATED PARKING SPACE • SEPARATE KITCHEN • 0.6 MILES TO HAROLD WOOD STATION • COUNCIL TAX BAND: D
Lease Remaining: 88 years
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice