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Year 5 disposal
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20/ 100
Weak
6.04% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- Monthly profit −£135/mo — mildly negative — equity build may cover
- -1.4% 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
−£135/mo
You top up £135/mo
Price
£295K
No local sold comps to compare
Return · IRR
-1.4%/yr
Loses money over 5 years
Cash to get in
£116K
Deposit + fees + refurb
Return before costs on price 6.04%5-yr return on cash -1%Rent est. £1,485 (£1,484–£1,486)
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: £1,484–£1,486/mo · n=33
Financing
DepositYour cash in — the rest is the mortgage25% · £73,750
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 £221,250 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
-£135
after mortgage, operating costs & tax
Rent in£1,485/mo gross
£1,428/mo collected · £57/mo lost to voids
Where it goes
£1,152Mortgage£411Costs
Outgoings exceed rent — you top up £135/mo
Mortgage£1,152
Costs£411
Management£149
Maintenance£50
Insurance£28
CapEx reserve£74
Voids + council tax£6
Ltd co. accounts£104
Tax—
Shortfall−£135
Returns
Return before costs on price6.04%
Cash return on cash-1.40%
Gross margin£1,017
Cash needed£115,936
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.19
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 | £17,820 | £4,927 | £13,828 | £0 | £0 | -£935 | -£935 |
| Year 2 | £18,355 | £5,075 | £13,828 | £0 | £0 | -£548 | -£1,483 |
| Year 3 | £18,905 | £5,227 | £13,828 | £0 | £0 | -£150 | -£1,633 |
| Year 4 | £19,472 | £5,384 | £13,828 | £0 | £49 | £211 | -£1,422 |
| Year 5 | £20,057 | £5,545 | £13,828 | £0 | £130 | £553 | -£869 |
Disposal gain (gross)-£14,200
CGT£0
Net Disposal proceeds£317,561
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
University College London · 44.6 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 history0d on marketno cuts yet
Strategy matrix
Rent it out wins — -£135/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 | 6.04% | -£135 | £115,936 | -0.7% | Low | Feasible |
| Housing-benefit rent | 4.53% | -£507 | £115,936 | -19.5% | Med | Feasible |
| Council lease | 0.00% | -£1,335 | £115,936 | -69.6% | Low | Feasible |
| Refurb & refinance | 6.04% | -£135 | £136,730 | -0.6% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£182 | £337,805 | 5% | Med | Feasible |
| Rent by the room | 7.32% | -£499 | £115,936 | -16.1% | — | 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
+£11/mo cash flow vs Rent it out if converted to Rent by the room
9.76% Return before costs on price converted vs 6.04% as-is
As-is Rent it out
Monthly profit-£150
Return before costs on price6.04%
Cash needed£85,648
If converted to Rent by the room
Monthly profit-£140
Return before costs on price9.76%
Cash needed£101,648
Δ vs Rent it out Monthly profit+£11
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
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£17,820
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£1,621
Exit costs
Projected sale price (5y · 2%/yr growth)£325,704
Capital gain (pre-CGT)£30,704
Sale costs (~2.5%)£8,143
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-£869
Rates as of Oct 2024
Acquisition costs
£115,936cash neededPurchase price£295,000
Deposit (25%)£73,750
Stamp duty+5% additional-property surcharge£19,500
Refurb£15,111
Legal + survey£2,150
Mortgage fees£5,425
Total cash neededdeposit + costs (loan covers the rest)£115,936
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
SUMMARY Chain Free | Three Bedroom Family Home | Walking Distance to Town Centre & Train Station
Offered to the market chain free, this well-proportioned three-bedroom family home is ideally situated in Elgar Path
DESCRIPTION Chain Free | Three Bedroom Family Home | Walking Distance to Town Centre & Train Station
Offered to the market chain free, this well-proportioned three-bedroom family home is ideally situated in Elgar Path, within walking distance of Luton town centre…
Floor plans
Listing metaonthemarket · Connells - Luton
About this listing
OnTheMarketPrice history
No price history available.
Monthly profit
−£135
Cash needed
£116K
Return after costs
-1.40%
IRR
-1.36%
Elgar Path, Luton, Luton
terraced · 3 bed · 1 bath
£295,000
est £1,485 · 6.04% gross
Chain free
1 / 19
20/100
Marginal
6.04% — verify the rent + comps locally.
Chain free
Price
£295K
Return before costs
6.04%
est rent £1,485/monot enough comparablesRange £1,484–£1,486/mo (Q1–Q3)
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: £1,484–£1,486/mo · n=33
Financing
DepositYour cash in — the rest is the mortgage25% · £73,750
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 £221,250 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
-£135
after mortgage, operating costs & tax
Rent in£1,485/mo gross
£1,428/mo collected · £57/mo lost to voids
Where it goes
£1,152Mortgage£411Costs
Outgoings exceed rent — you top up £135/mo
Mortgage£1,152
Costs£411
Management£149
Maintenance£50
Insurance£28
CapEx reserve£74
Voids + council tax£6
Ltd co. accounts£104
Tax—
Shortfall−£135
Returns
Return before costs on price6.04%
Cash return on cash-1.40%
Gross margin£1,017
Cash needed£115,936
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.19
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 | £17,820 | £4,927 | £13,828 | £0 | £0 | -£935 | -£935 |
| Year 2 | £18,355 | £5,075 | £13,828 | £0 | £0 | -£548 | -£1,483 |
| Year 3 | £18,905 | £5,227 | £13,828 | £0 | £0 | -£150 | -£1,633 |
| Year 4 | £19,472 | £5,384 | £13,828 | £0 | £49 | £211 | -£1,422 |
| Year 5 | £20,057 | £5,545 | £13,828 | £0 | £130 | £553 | -£869 |
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£2,766
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£869
Acquisition costs
25% deposit£73,750
Stamp duty£19,500
Refurb£15,111
Legal + survey£2,150
Mortgage + broker£5,425
Cash needed£115,936
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
SUMMARY Chain Free | Three Bedroom Family Home | Walking Distance to Town Centre & Train Station
Offered to the market chain free, this well-proportioned three-bedroom family home is ideally situated in Elgar Path
DESCRIPTION Chain Free | Three Bedroom Family Home | Walking Distance to Town Centre & Train Station
Offered to the market chain free, this well-proportioned three-bedroom family home is ideally situated in Elgar Path, within walking distance of Luton town centre…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice