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Year 5 disposal
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100/ 100
Strong
Strong investment fundamentals.
Why it works
- 11.01% return before costs — above-market
- 17.6% Rent by the room return before costs (net 8.04% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- EPC C — MEES compliant
Why to be cautious
- No rent comparables — estimate is a rule-of-thumb fallback, not market data. Verify the rent locally before offering.
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
+£113/mo
Barely breaks even each month
Price
£90K
No local sold comps to compare
Return · IRR
3.3%/yr
Modest annualised return
Cash to get in
£46K
Deposit + fees + refurb
Return before costs on price · Rent by the room 17.65%5-yr return on cash 21%Rent est. £826 (£675–£1,011)
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: £675–£1,011/mo · n=68
Financing
DepositYour cash in — the rest is the mortgage25% · £22,500
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 (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £67,500 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
+£113
after mortgage, operating costs & tax
Rent in£826/mo gross
£794/mo collected · £32/mo lost to voids
Where it goes
£352Mortgage£304Costs
£113/mo left as profit · 14% of rent kept
Mortgage£352
Costs£304
Management£83
Maintenance£50
Insurance£20
CapEx reserve£41
Voids + council tax£6
Ltd co. accounts£104
Tax£26
Profit+£113
Returns
Return before costs on price11.01%
Cash return on cash2.93%
Gross margin£490
Cash needed£46,161
Monthly profit payback34y 3m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.17
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 | £9,912 | £3,645 | £4,219 | £0 | £389 | £1,659 | £1,659 |
| Year 2 | £10,209 | £3,754 | £4,219 | £0 | £425 | £1,811 | £3,471 |
| Year 3 | £10,516 | £3,867 | £4,219 | £0 | £462 | £1,968 | £5,439 |
| Year 4 | £10,831 | £3,983 | £4,219 | £0 | £500 | £2,130 | £7,569 |
| Year 5 | £11,156 | £4,102 | £4,219 | £0 | £539 | £2,296 | £9,865 |
Disposal gain (gross)-£14,428
CGT£0
Net Disposal proceeds£96,883
What we verified
What we verified
60056 ok · 0 caution · 0 fail · 5 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
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
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
Northumbria · 53.6 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 history30d on marketno cuts yet
Strategy matrix
Rent it out wins — +£113/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 | 11.01% | +£113 | £46,161 | 21.4% | Low | Feasible |
| Housing-benefit rent | 7.32% | -£124 | £46,161 | -8.4% | Med | Feasible |
| Council lease | 0.00% | -£526 | £46,161 | -69.7% | Low | Feasible |
| Refurb & refinance | 11.01% | +£113 | £56,705 | 17.4% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£174 | £117,355 | -7% | Med | Feasible |
| Rent by the room | 17.65% | -£524 | £76,161 | -33.6% | — | 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
+£442/mo cash flow vs Rent it out if converted to Rent by the room
32.00% Return before costs on price converted vs 11.01% as-is
Room mix (3 lettable rooms)
3× Double @ £441/mo
≈ £1,324/mo gross room income
As-is Rent it out
Monthly profit+£94
Return before costs on price11.01%
Cash needed£34,398
If converted to Rent by the room
Monthly profit+£536
Return before costs on price32.00%
Cash needed£50,398
Δ vs Rent it out Monthly profit+£442
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£28,730–£54,000full refurb + room split
⚠️ Capped at 60% of £90,000 asking (£54,000). Raw model: £48,990–£92,080. Verify with a surveyor before offering.
What's in this cost
- Kitchen£5,067–£10,134
- 1 × bathroom£3,343–£6,128
- Rewire£2,322–£4,064
- Replumb£1,742–£3,483
- Windows£5,806–£10,450
- Paint + decor£4,064–£7,548
- Flooring£6,386–£12,192
Based on 4 HMO comps within 2.7 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£9,912
Section 24 credit£0
Annual tax due£389
Post-tax Monthly profit annual£1,278
Exit costs
Projected sale price (5y · 2%/yr growth)£99,367
Capital gain (pre-CGT)£9,367
Sale costs (~2.5%)£2,484
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£9,865
Rates as of Oct 2024
Acquisition costs
£46,161cash neededPurchase price£90,000
Deposit (25%)£22,500
Stamp duty+5% additional-property surcharge£4,500
Refurb£15,111
Legal + survey£1,700
Mortgage fees£2,350
Total cash neededdeposit + costs (loan covers the rest)£46,161
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
NGU Homes are delighted to bring to the market this three-bedroom home, situated in the popular residential area of Grangetown, Middlesbrough, TS6, offered for sale with a tenant already in situ, currently paying £675 per calendar month and reflecting a yield of approximately 9%, a genuine hands off opportunity for portfolio investors.
Tenant in Situ- Perfect for Investors:
This property comes with rental income secured from day one, removing any void period or re letting c…
Floor plans
Listing metaonthemarket · NGU Homes - Gateshead Sales
About this listing
30 days · OnTheMarketPrice history
No price history available.
Monthly profit
+£113
Cash needed
£46K
Return after costs
2.93%
IRR
3.26%
Listed 30d ago
Grange Farm Road, Middlesbrough, Middlesbrough
terraced · 3 bed · 1 bath
£90,000
est £826 · 11.01% gross
EPC C
1 / 5
100/100
Strong
Real 17.65% — fundamentals work.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
11.01% Return before costs — above-market
17.6% Rent by the room Return before costs — conversion play
Price
£90K
Return before costs (best)
17.65%
Rent by the room
Bedrooms
3
1 bath
Energy rating
C
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: £675–£1,011/mo · n=68
Financing
DepositYour cash in — the rest is the mortgage25% · £22,500
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 (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £67,500 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
+£113
after mortgage, operating costs & tax
Rent in£826/mo gross
£794/mo collected · £32/mo lost to voids
Where it goes
£352Mortgage£304Costs
£113/mo left as profit · 14% of rent kept
Mortgage£352
Costs£304
Management£83
Maintenance£50
Insurance£20
CapEx reserve£41
Voids + council tax£6
Ltd co. accounts£104
Tax£26
Profit+£113
Returns
Return before costs on price11.01%
Cash return on cash2.93%
Gross margin£490
Cash needed£46,161
Monthly profit payback34y 3m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.17
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 | £9,912 | £3,645 | £4,219 | £0 | £389 | £1,659 | £1,659 |
| Year 2 | £10,209 | £3,754 | £4,219 | £0 | £425 | £1,811 | £3,471 |
| Year 3 | £10,516 | £3,867 | £4,219 | £0 | £462 | £1,968 | £5,439 |
| Year 4 | £10,831 | £3,983 | £4,219 | £0 | £500 | £2,130 | £7,569 |
| Year 5 | £11,156 | £4,102 | £4,219 | £0 | £539 | £2,296 | £9,865 |
Rent by the room upside
What we verified
6005
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▾
EPCEnergy efficiency ratingC
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£844
Annual rental tax£317
CGT yr 5£0 · company level
5y net total£9,865
Acquisition costs
25% deposit£22,500
Stamp duty£4,500
Refurb£15,111
Legal + survey£1,700
Mortgage + broker£2,350
Cash needed£46,161
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
NGU Homes are delighted to bring to the market this three-bedroom home, situated in the popular residential area of Grangetown, Middlesbrough, TS6, offered for sale with a tenant already in situ, currently paying £675 per calendar month and reflecting a yield of approximately 9%, a genuine hands off opportunity for portfolio investors.
Tenant in Situ- Perfect for Investors:
This property comes with rental income secured from day one, removing any void period or re letting c…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice