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Year 5 disposal
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0/ 100
Weak
5.84% Rent by the room return before costs — verify the rent + comps locally.
Why it works
Why to be cautious
- Monthly profit −£541/mo — heavily negative — needs monthly capital injection
- -4.9% 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
−£541/mo
You top up £541/mo
Price
£375K
No local sold comps to compare
Return · IRR
-4.9%/yr
Loses money over 5 years
Cash to get in
£145K
Deposit + fees + refurb
Return before costs on price · Rent by the room 5.84%5-yr return on cash -18%Rent est. £1,390 (£1,317–£1,467)
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: £1,317–£1,467/mo · n=28
Financing
DepositYour cash in — the rest is the mortgage25% · £93,750
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 — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £281,250 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
-£541
after mortgage, operating costs & tax
Rent in£1,390/mo gross
£1,337/mo collected · £53/mo lost to voids
Where it goes
£1,465Mortgage£413Costs
Outgoings exceed rent — you top up £541/mo
Mortgage£1,465
Costs£413
Management£139
Maintenance£67
Insurance£28
CapEx reserve£70
Voids + council tax£5
Ltd co. accounts£104
Tax—
Shortfall−£541
Returns
Return before costs on price4.45%
Cash return on cash-4.47%
Gross margin£924
Cash needed£145,136
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.88
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 | £16,680 | £4,951 | £17,578 | £0 | £0 | -£5,849 | -£5,849 |
| Year 2 | £17,180 | £5,099 | £17,578 | £0 | £0 | -£5,497 | -£11,345 |
| Year 3 | £17,696 | £5,252 | £17,578 | £0 | £0 | -£5,134 | -£16,480 |
| Year 4 | £18,227 | £5,410 | £17,578 | £0 | £0 | -£4,761 | -£21,241 |
| Year 5 | £18,773 | £5,572 | £17,578 | £0 | £0 | -£4,376 | -£25,617 |
Disposal gain (gross)-£16,081
CGT£0
Net Disposal proceeds£403,680
What we verified
What we verified
30083 ok · 0 caution · 0 fail · 8 unknown
Legal & planning
LeaseholdAsk agent
Tenure & planningAsk agent
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
University of Cambridge · 64.5 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 · 2-bath · 990 sqft
£28k–£56k
£ per sqft
building cost only
£29–£56
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- 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 history24d on marketno cuts yet
Strategy matrix
Rent it out wins — -£541/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 | 4.45% | -£541 | £145,136 | -17.7% | Low | Feasible |
| Housing-benefit rent | 2.55% | -£1,073 | £145,136 | -40.7% | Med | Feasible |
| Council lease | 0.00% | -£1,664 | £145,136 | -69.3% | Low | Feasible |
| Refurb & refinance | 4.45% | -£541 | £169,930 | -15.1% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£199 | £425,805 | 5% | Med | Feasible |
| Rent by the room | 5.84% | -£1,520 | £171,136 | -48.2% | — | 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
+£88/mo cash flow vs Rent it out if converted to Rent by the room
7.68% Return before costs on price converted vs 4.45% as-is
Room mix (3 lettable rooms)
1× Double @ £639/mo1× Single @ £475/mo1× En-suite @ £710/mo
≈ £1,824/mo gross room income
As-is Rent it out
Monthly profit-£540
Return before costs on price4.45%
Cash needed£105,648
If converted to Rent by the room
Monthly profit-£452
Return before costs on price7.68%
Cash needed£121,648
Δ vs Rent it out Monthly profit+£88
Show conversion detail
Conversion cost estimate
£44,000
Range: £38,000 – £52,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£54,690–£102,530full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 2 × bathroom£11,400–£20,900
- 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 2030 HMO comps within 2.2 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£16,680
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£6,490
Exit costs
Projected sale price (5y · 2%/yr growth)£414,030
Capital gain (pre-CGT)£39,030
Sale costs (~2.5%)£10,351
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-£25,617
Rates as of Oct 2024
Acquisition costs
£145,136cash neededPurchase price£375,000
Deposit (25%)£93,750
Stamp duty+5% additional-property surcharge£27,500
Refurb£15,111
Legal + survey£2,150
Mortgage fees£6,625
Total cash neededdeposit + costs (loan covers the rest)£145,136
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
OVERVIEW *GUIDE PRICE £375,000 TO £400,000* Offered with no onward chain, this spacious three-bedroom semi-detached home occupies a popular position on Ipswich Road and offers versatile accommodation arranged over three floors. Featuring a generous lounge/dining room, separate breakfast room, modern ground floor shower room, useful loft room, ample parking and a detached garage, the property presents an excellent opportunity for families and commuters alike.
STEP INSIDE Th…
Floor plans
Listing metaonthemarket · John Alexander Estate Agents - Essex
About this listing
24 days · OnTheMarketPrice history
No price history available.
Monthly profit
−£541
Cash needed
£145K
Return after costs
-4.47%
IRR
-4.92%
Listed 24d ago
Ipswich Road, Colchester, Colchester
semi-detached · 3 bed · 2 bath
£375,000
est £1,390 · 4.45% gross
1 / 5
0/100
Marginal
5.84% — verify the rent + comps locally.
4.45% Return before costs — around the area average for this property type.
Monthly profit −£541/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£375K
Return before costs (best)
5.84%
Rent by the room
Bedrooms
3
2 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: £1,317–£1,467/mo · n=28
Financing
DepositYour cash in — the rest is the mortgage25% · £93,750
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 — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £281,250 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
-£541
after mortgage, operating costs & tax
Rent in£1,390/mo gross
£1,337/mo collected · £53/mo lost to voids
Where it goes
£1,465Mortgage£413Costs
Outgoings exceed rent — you top up £541/mo
Mortgage£1,465
Costs£413
Management£139
Maintenance£67
Insurance£28
CapEx reserve£70
Voids + council tax£5
Ltd co. accounts£104
Tax—
Shortfall−£541
Returns
Return before costs on price4.45%
Cash return on cash-4.47%
Gross margin£924
Cash needed£145,136
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.88
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 | £16,680 | £4,951 | £17,578 | £0 | £0 | -£5,849 | -£5,849 |
| Year 2 | £17,180 | £5,099 | £17,578 | £0 | £0 | -£5,497 | -£11,345 |
| Year 3 | £17,696 | £5,252 | £17,578 | £0 | £0 | -£5,134 | -£16,480 |
| Year 4 | £18,227 | £5,410 | £17,578 | £0 | £0 | -£4,761 | -£21,241 |
| Year 5 | £18,773 | £5,572 | £17,578 | £0 | £0 | -£4,376 | -£25,617 |
Rent by the room upside
What we verified
4007
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
TenureTenure typeAsk agent
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£3,516
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£25,617
Acquisition costs
25% deposit£93,750
Stamp duty£27,500
Refurb£15,111
Legal + survey£2,150
Mortgage + broker£6,625
Cash needed£145,136
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
OVERVIEW *GUIDE PRICE £375,000 TO £400,000* Offered with no onward chain, this spacious three-bedroom semi-detached home occupies a popular position on Ipswich Road and offers versatile accommodation arranged over three floors. Featuring a generous lounge/dining room, separate breakfast room, modern ground floor shower room, useful loft room, ample parking and a detached garage, the property presents an excellent opportunity for families and commuters alike.
STEP INSIDE Th…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice