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Year 5 disposal
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0/ 100
Weak
5.07% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- Long lease (970 yrs) — no short-lease drag
- EPC C — MEES compliant
Why to be cautious
- Service charge unknown — could swing £100-300/mo
- Monthly profit −£539/mo — heavily negative — needs monthly capital injection
- -7.0% 5y IRR — capital outlay disproportionate to returns
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£539/mo
You top up £539/mo
Price
£250K
No local sold comps to compare
Return · IRR
-7.0%/yr
Loses money over 5 years
Cash to get in
£96K
Deposit + fees + refurb
Return before costs on price 5.07%5-yr return on cash -29%Rent est. £1,057 (£892–£1,253)
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: £892–£1,253/mo · n=40
Financing
DepositYour cash in — the rest is the mortgage25% · £62,500
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 — £1,875 legal + £650 survey
Mortgage fees (£)
2% product fee on £187,500 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
-£539
after mortgage, operating costs & tax
Rent in£1,057/mo gross
£1,016/mo collected · £41/mo lost to voids
Where it goes
£1,016Mortgage£540Costs
Outgoings exceed rent — you top up £539/mo
Mortgage£1,016
Costs£540
Management£106
Maintenance£67
Insurance£28
CapEx reserve£53
Voids + council tax£7
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£539
Returns
Return before costs on price5.07%
Cash return on cash-6.77%
Gross margin£476
Cash needed£95,539
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.00
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 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 | £12,684 | £6,480 | £12,188 | £0 | £0 | -£5,984 | -£5,984 |
| Year 2 | £13,065 | £6,675 | £12,188 | £0 | £0 | -£5,797 | -£11,781 |
| Year 3 | £13,456 | £6,875 | £12,188 | £0 | £0 | -£5,606 | -£17,387 |
| Year 4 | £13,860 | £7,081 | £12,188 | £0 | £0 | -£5,408 | -£22,795 |
| Year 5 | £14,276 | £7,293 | £12,188 | £0 | £0 | -£5,205 | -£28,000 |
Disposal gain (gross)-£9,169
CGT£0
Net Disposal proceeds£269,120
What we verified
What we verified
51055 ok · 1 caution · 0 fail · 5 unknown
Legal & planning
Leasehold970 yr
Leaseholdmaterial factsListing extract
Lease remaining
Mortgageable ≥80yr
970 yr
Extracted from listing description · verify with solicitor
Tenure & planning970 yr
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
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 cohortLN1 · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
Nottingham Trent · 51.3 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
2-bed · 1-bath · 810 sqft
£22k–£43k
£ per sqft
building cost only
£27–£53
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£5,670–£10,530
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£8,910–£17,010
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 history65d on marketno cuts yet
Strategy matrix
Rent it out wins — -£539/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 | 5.07% | -£539 | £95,539 | -29.3% | Low | Feasible |
| Housing-benefit rent | 3.00% | -£934 | £95,539 | -55.2% | Med | Feasible |
| Council lease | 0.00% | -£1,390 | £95,539 | -88.7% | Low | Feasible |
| Refurb & refinance | 5.07% | -£539 | £112,345 | -24.9% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£374 | £282,595 | 5% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
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
+£351/mo cash flow vs Rent it out if converted to Rent by the room
11.52% Return before costs on price converted vs 5.07% as-is
As-is Rent it out
Monthly profit-£322
Return before costs on price5.07%
Cash needed£74,398
If converted to Rent by the room
Monthly profit+£29
Return before costs on price11.52%
Cash needed£90,398
Δ vs Rent it out Monthly profit+£351
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
£44,000
Range: £38,000 – £52,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£42,690–£80,380full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 1 × bathroom£5,700–£10,450
- Rewire£3,240–£5,670
- Replumb£2,430–£4,860
- Windows£8,100–£14,580
- Paint + decor£5,670–£10,530
- Flooring£8,910–£17,010
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
Tax treatment
Annual gross rent£12,684
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£6,471
Exit costs
Projected sale price (5y · 2%/yr growth)£276,020
Capital gain (pre-CGT)£26,020
Sale costs (~2.5%)£6,901
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-£28,000
Rates as of Oct 2024
Acquisition costs
£95,539cash neededPurchase price£250,000
Deposit (25%)£62,500
Stamp duty+5% additional-property surcharge£15,000
Refurb£10,764
Legal + survey£2,525
Mortgage fees£4,750
Total cash neededdeposit + costs (loan covers the rest)£95,539
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
Pygott & Crone are delighted to present this impressive first-floor apartment, occupying a sought-after central location within easy reach of Lincoln's historic city centre and the prestigious Bailgate Quarter. Combining contemporary style with everyday practicality, this superb home offers an ideal opportunity for a wide range of buyers while enjoying panoramic views across the city.
The spacious living area is flooded with natural light and opens onto a generous balcony, c…
Floor plans
Listing metaonthemarket · Pygott & Crone - Lincoln
About this listing
65 days · OnTheMarketPrice history
5-year price trend
Monthly profit
−£539
Cash needed
£96K
Return after costs
-6.77%
IRR
-6.97%
Listed 65d ago
St. Michaels Terrace, Lincoln, Lincolnshire, LN1, Lincoln, LN1
flat · 2 bed · 1 bath
£250,000
est £1,057 · 5.07% gross
Leasehold 970yrEPC C
1 / 5
0/100
Marginal
5.07% — verify the rent + comps locally.
5.07% Return before costs — around the area average for this property type.
Monthly profit −£539/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Energy rating C — Min. energy standard 2030 compliant.
Price
£250K
Return before costs
5.07%
est rent £1,057/mo40 comps within 1 kmRange £892–£1,253/mo (Q1–Q3)
Bedrooms
2
1 bath
Energy rating
C
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: £892–£1,253/mo · n=40
Financing
DepositYour cash in — the rest is the mortgage25% · £62,500
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 — £1,875 legal + £650 survey
Mortgage fees (£)
2% product fee on £187,500 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
-£539
after mortgage, operating costs & tax
Rent in£1,057/mo gross
£1,016/mo collected · £41/mo lost to voids
Where it goes
£1,016Mortgage£540Costs
Outgoings exceed rent — you top up £539/mo
Mortgage£1,016
Costs£540
Management£106
Maintenance£67
Insurance£28
CapEx reserve£53
Voids + council tax£7
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£539
Returns
Return before costs on price5.07%
Cash return on cash-6.77%
Gross margin£476
Cash needed£95,539
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.00
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 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 | £12,684 | £6,480 | £12,188 | £0 | £0 | -£5,984 | -£5,984 |
| Year 2 | £13,065 | £6,675 | £12,188 | £0 | £0 | -£5,797 | -£11,781 |
| Year 3 | £13,456 | £6,875 | £12,188 | £0 | £0 | -£5,606 | -£17,387 |
| Year 4 | £13,860 | £7,081 | £12,188 | £0 | £0 | -£5,408 | -£22,795 |
| Year 5 | £14,276 | £7,293 | £12,188 | £0 | £0 | -£5,205 | -£28,000 |
Rent by the room upside
What we verified
4206
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining970 yr
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 · 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£2,438
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£28,000
Acquisition costs
25% deposit£62,500
Stamp duty£15,000
Refurb£10,764
Legal + survey£2,525
Mortgage + broker£4,750
Cash needed£95,539
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
Pygott & Crone are delighted to present this impressive first-floor apartment, occupying a sought-after central location within easy reach of Lincoln's historic city centre and the prestigious Bailgate Quarter. Combining contemporary style with everyday practicality, this superb home offers an ideal opportunity for a wide range of buyers while enjoying panoramic views across the city.
The spacious living area is flooded with natural light and opens onto a generous balcony, c…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice