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Year 5 disposal
⊞ View all 5
4/ 100
Weak
5.38% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- Monthly profit −£262/mo — significantly negative — real recurring drain
- -3.0% 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
−£262/mo
You top up £262/mo
Price
£280K
No local sold comps to compare
Return · IRR
-3.0%/yr
Loses money over 5 years
Cash to get in
£106K
Deposit + fees + refurb
Return before costs on price 5.38%5-yr return on cash -9%Rent est. £1,255 (£1,214–£1,297)
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: £1,214–£1,297/mo · n=24
Financing
DepositYour cash in — the rest is the mortgage25% · £70,000
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 (£8,073–£15,070 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £210,000 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
-£262
after mortgage, operating costs & tax
Rent in£1,255/mo gross
£1,207/mo collected · £48/mo lost to voids
Where it goes
£1,094Mortgage£375Costs
Outgoings exceed rent — you top up £262/mo
Mortgage£1,094
Costs£375
Management£126
Maintenance£50
Insurance£28
CapEx reserve£63
Voids + council tax£5
Ltd co. accounts£104
Tax—
Shortfall−£262
Returns
Return before costs on price5.38%
Cash return on cash-2.97%
Gross margin£831
Cash needed£106,114
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.06
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 | £15,060 | £4,504 | £13,125 | £0 | £0 | -£2,568 | -£2,568 |
| Year 2 | £15,512 | £4,639 | £13,125 | £0 | £0 | -£2,252 | -£4,820 |
| Year 3 | £15,977 | £4,778 | £13,125 | £0 | £0 | -£1,926 | -£6,746 |
| Year 4 | £16,456 | £4,921 | £13,125 | £0 | £0 | -£1,590 | -£8,336 |
| Year 5 | £16,950 | £5,069 | £13,125 | £0 | £0 | -£1,244 | -£9,579 |
Disposal gain (gross)-£9,500
CGT£0
Net Disposal proceeds£301,414
What we verified
What we verified
41064 ok · 1 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 profileMixed demand
Tenant profilelikely cohort2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University College London · 44.2 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 history0d on marketno cuts yet
Strategy matrix
Rent it out wins — -£262/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 | 5.38% | -£262 | £106,114 | -9.0% | Low | Feasible |
| Housing-benefit rent | 4.03% | -£577 | £106,114 | -26.5% | Med | Feasible |
| Council lease | 0.00% | -£1,276 | £106,114 | -72.8% | Low | Feasible |
| Refurb & refinance | 5.38% | -£262 | £124,420 | -7.7% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£182 | £315,220 | 6% | 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
+£197/mo cash flow vs Rent it out if converted to Rent by the room
10.29% Return before costs on price converted vs 5.38% as-is
As-is Rent it out
Monthly profit-£278
Return before costs on price5.38%
Cash needed£81,898
If converted to Rent by the room
Monthly profit-£81
Return before costs on price10.29%
Cash needed£97,898
Δ vs Rent it out Monthly profit+£197
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£15,060
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£3,148
Exit costs
Projected sale price (5y · 2%/yr growth)£309,143
Capital gain (pre-CGT)£29,143
Sale costs (~2.5%)£7,729
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-£9,579
Rates as of Oct 2024
Acquisition costs
£106,114cash neededPurchase price£280,000
Deposit (25%)£70,000
Stamp duty+5% additional-property surcharge£18,000
Refurb£10,764
Legal + survey£2,150
Mortgage fees£5,200
Total cash neededdeposit + costs (loan covers the rest)£106,114
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · onthemarket
Description& agent copyOnTheMarket
A home with room to grow – and the potential to become something truly special. If you're looking for a home that offers more than just four walls and a garden, Hart Lane deserves your attention. This attractive two-bedroom end-of-terrace property comes with something increasingly difficult to find: a huge side plot, generous off-road parking and a private rear garden, creating an exceptional opportunity for someone with vision.
Inside, the accommodation is well laid out, wi…
Floor plans
Listing metaonthemarket · haart Estate Agents - Stopsley
About this listing
OnTheMarketPrice history
No price history available.
Monthly profit
−£262
Cash needed
£106K
Return after costs
-2.97%
IRR
-3.02%
Hart Lane, Luton, Luton
terraced · 2 bed · 1 bath
£280,000
est £1,255 · 5.38% gross
1 / 5
4/100
Marginal
5.38% — verify the rent + comps locally.
5.38% Return before costs — around the area average for this property type.
Monthly profit −£262/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£280K
Return before costs
5.38%
est rent £1,255/monot enough comparablesRange £1,214–£1,297/mo (Q1–Q3)
Bedrooms
2
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: £1,214–£1,297/mo · n=24
Financing
DepositYour cash in — the rest is the mortgage25% · £70,000
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 (£8,073–£15,070 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £210,000 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
-£262
after mortgage, operating costs & tax
Rent in£1,255/mo gross
£1,207/mo collected · £48/mo lost to voids
Where it goes
£1,094Mortgage£375Costs
Outgoings exceed rent — you top up £262/mo
Mortgage£1,094
Costs£375
Management£126
Maintenance£50
Insurance£28
CapEx reserve£63
Voids + council tax£5
Ltd co. accounts£104
Tax—
Shortfall−£262
Returns
Return before costs on price5.38%
Cash return on cash-2.97%
Gross margin£831
Cash needed£106,114
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.06
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 | £15,060 | £4,504 | £13,125 | £0 | £0 | -£2,568 | -£2,568 |
| Year 2 | £15,512 | £4,639 | £13,125 | £0 | £0 | -£2,252 | -£4,820 |
| Year 3 | £15,977 | £4,778 | £13,125 | £0 | £0 | -£1,926 | -£6,746 |
| Year 4 | £16,456 | £4,921 | £13,125 | £0 | £0 | -£1,590 | -£8,336 |
| Year 5 | £16,950 | £5,069 | £13,125 | £0 | £0 | -£1,244 | -£9,579 |
Rent by the room upside
What we verified
3206
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
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 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£2,625
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£9,579
Acquisition costs
25% deposit£70,000
Stamp duty£18,000
Refurb£10,764
Legal + survey£2,150
Mortgage + broker£5,200
Cash needed£106,114
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
A home with room to grow – and the potential to become something truly special. If you're looking for a home that offers more than just four walls and a garden, Hart Lane deserves your attention. This attractive two-bedroom end-of-terrace property comes with something increasingly difficult to find: a huge side plot, generous off-road parking and a private rear garden, creating an exceptional opportunity for someone with vision.
Inside, the accommodation is well laid out, wi…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice