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Year 5 disposal
⊞ View all 5
4/ 100
Weak
6.35% Rent by the room return before costs — verify the rent + comps locally.
Why it works
Why to be cautious
- Monthly profit −£661/mo — heavily negative — needs monthly capital injection
- -4.4% 5y IRR — capital outlay disproportionate to returns
- 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
−£661/mo
You top up £661/mo
Price
£500K
No local sold comps to compare
Return · IRR
-4.4%/yr
Loses money over 5 years
Cash to get in
£205K
Deposit + fees + refurb
Return before costs on price · Rent by the room 6.35%5-yr return on cash -15%Rent est. £1,904 (£1,805–£2,008)
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: £1,805–£2,008/mo · n=22
Financing
DepositYour cash in — the rest is the mortgage25% · £124,988
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 (£21,813–£40,718 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £374,962.5 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 £400K+
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£661
after mortgage, operating costs & tax
Rent in£1,904/mo gross
£1,831/mo collected · £73/mo lost to voids
Where it goes
£1,953Mortgage£539Costs
Outgoings exceed rent — you top up £661/mo
Mortgage£1,953
Costs£539
Management£190
Maintenance£100
Insurance£40
CapEx reserve£95
Voids + council tax£9
Ltd co. accounts£104
Tax—
Shortfall−£661
Returns
Return before costs on price4.57%
Cash return on cash-3.87%
Gross margin£1,292
Cash needed£204,716
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.90
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 | £22,848 | £6,464 | £23,435 | £0 | £0 | -£7,051 | -£7,051 |
| Year 2 | £23,533 | £6,658 | £23,435 | £0 | £0 | -£6,560 | -£13,611 |
| Year 3 | £24,239 | £6,858 | £23,435 | £0 | £0 | -£6,054 | -£19,665 |
| Year 4 | £24,967 | £7,064 | £23,435 | £0 | £0 | -£5,532 | -£25,197 |
| Year 5 | £25,716 | £7,276 | £23,435 | £0 | £0 | -£4,995 | -£30,192 |
Disposal gain (gross)-£32,993
CGT£0
Net Disposal proceeds£538,186
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 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
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
SchoolsNo postcode
Schools& Ofsted catchmentGIAS register
No schools indexed for this postcode sector.
Investor
Tenant profileFamily let
Tenant profilelikely cohort3 bed
Primary profile
Family let
Nearest university
for student-let assessment
Imperial College · 26.7 km
Reason
3-bed house in a suburban area — family-let demand dominates; check local school catchment ratings.
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 · 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 history52d on marketno cuts yet
Strategy matrix
Rent it out wins — -£661/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 | 4.57% | -£661 | £204,716 | -14.7% | Low | Feasible |
| Housing-benefit rent | 1.63% | -£1,704 | £204,716 | -47.9% | Med | Feasible |
| Council lease | 0.00% | -£2,197 | £204,716 | -64.8% | Low | Feasible |
| Refurb & refinance | 4.57% | -£661 | £241,347 | -12.5% | Med | Feasible |
| Short-stay let / Airbnb | 1.30% | -£1,873 | £204,716 | -54.8% | High | Feasible |
| Buy, improve & sell | 0.00% | -£244 | £582,813 | 3% | Med | Feasible |
| Rent by the room | 6.35% | -£1,828 | £234,716 | -41.0% | — | Feasible |
Short-let (SA) context276 active short-lets nearby
Short-let market context
- 276 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 let14% occupancy
£124/night ADR
Based on 17 short-let comps nearby
Rent by the room conversion upside
-£330/mo cash flow vs Rent it out if converted to Rent by the room
5.76% Return before costs on price converted vs 4.57% as-is
Room mix (3 lettable rooms)
3× Double @ £882/mo
≈ £2,645/mo gross room income
As-is Rent it out
Monthly profit-£611
Return before costs on price4.57%
Cash needed£136,886
If converted to Rent by the room
Monthly profit-£940
Return before costs on price5.76%
Cash needed£152,886
Δ vs Rent it out Monthly profit-£330
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£48,990–£92,080full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 1 × bathroom£5,700–£10,450
- Rewire£3,960–£6,930
- Replumb£2,970–£5,940
- Windows£9,900–£17,820
- Paint + decor£6,930–£12,870
- Flooring£10,890–£20,790
Based on 255 HMO comps within 5.8 km
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£22,848
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£7,930
Exit costs
Projected sale price (5y · 2%/yr growth)£551,985
Capital gain (pre-CGT)£52,035
Sale costs (~2.5%)£13,800
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-£30,192
Rates as of Oct 2024
Acquisition costs
£204,716cash neededPurchase price£499,950
Deposit (25%)£124,988
Stamp duty+5% additional-property surcharge£39,995
Refurb£29,084
Legal + survey£2,150
Mortgage fees£8,499
Total cash neededdeposit + costs (loan covers the rest)£204,716
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
Offered with no onward chain, this detached family home presents an excellent opportunity for purchasers seeking a spacious property with scope to modernise and add value. Conveniently located within easy reach of local amenities, the train station and the picturesque Mercers Park, it is ideally suited to families and commuters alike.
The well-proportioned accommodation comprises three generous bedrooms, all benefitting from built-in storage, together with a spacious dual-as…
Floor plans
Listing metaonthemarket · JamesDean Estate Agents - Reigate
About this listing
52 days · OnTheMarketPrice history
No price history available.
Monthly profit
−£661
Cash needed
£205K
Return after costs
-3.87%
IRR
-4.44%
Listed 52d ago
Manor Road, Merstham, Redhill, Redhill
detached · 3 bed · 1 bath
£499,950
est £1,904 · 4.57% gross
1 / 5
4/100
Marginal
6.35% — verify the rent + comps locally.
4.57% Return before costs — around the area average for this property type.
Monthly profit −£661/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£500K
Return before costs (best)
6.35%
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: £1,805–£2,008/mo · n=22
Financing
DepositYour cash in — the rest is the mortgage25% · £124,988
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 (£21,813–£40,718 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £374,962.5 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 £400K+
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£661
after mortgage, operating costs & tax
Rent in£1,904/mo gross
£1,831/mo collected · £73/mo lost to voids
Where it goes
£1,953Mortgage£539Costs
Outgoings exceed rent — you top up £661/mo
Mortgage£1,953
Costs£539
Management£190
Maintenance£100
Insurance£40
CapEx reserve£95
Voids + council tax£9
Ltd co. accounts£104
Tax—
Shortfall−£661
Returns
Return before costs on price4.57%
Cash return on cash-3.87%
Gross margin£1,292
Cash needed£204,716
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.90
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Short-let (SA) context276 active short-lets nearby
Short-let market context
- 276 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 | £22,848 | £6,464 | £23,435 | £0 | £0 | -£7,051 | -£7,051 |
| Year 2 | £23,533 | £6,658 | £23,435 | £0 | £0 | -£6,560 | -£13,611 |
| Year 3 | £24,239 | £6,858 | £23,435 | £0 | £0 | -£6,054 | -£19,665 |
| Year 4 | £24,967 | £7,064 | £23,435 | £0 | £0 | -£5,532 | -£25,197 |
| Year 5 | £25,716 | £7,276 | £23,435 | £0 | £0 | -£4,995 | -£30,192 |
Rent by the room upside
What we verified
5006
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▾
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 · OfstedNo postcode
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£4,687
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£30,192
Acquisition costs
25% deposit£124,988
Stamp duty£39,995
Refurb£29,084
Legal + survey£2,150
Mortgage + broker£8,499
Cash needed£204,716
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
Offered with no onward chain, this detached family home presents an excellent opportunity for purchasers seeking a spacious property with scope to modernise and add value. Conveniently located within easy reach of local amenities, the train station and the picturesque Mercers Park, it is ideally suited to families and commuters alike.
The well-proportioned accommodation comprises three generous bedrooms, all benefitting from built-in storage, together with a spacious dual-as…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice