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Year 5 disposal
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Caution
Real 10.53% return before costs but flagged risks need pricing in.
Why it works
- Monthly profit +£675/mo from completion — the no.1 reason to invest
- 10.53% return before costs — above-market
- 6.4% 5y IRR — strong total return on capital
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
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
+£675/mo
Pays you every month, net of costs
Price
£340K
No local sold comps to compare
Return · IRR
6.4%/yr
Modest annualised return
Cash to get in
£133K
Deposit + fees + refurb
Return before costs on price 10.53%5-yr return on cash 40%Rent est. £2,984 (£2,175–£4,094)
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
Rates as of 20 May 2026Buy-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: £2,175–£4,094/mo · n=9
Financing
DepositYour cash in — the rest is the mortgage25% · £85,000
Standard 75% LTV for BTL
Mortgage rate5y fixed5.8%
5-year fixed at 75% LTV — 5.75% (as of 2026-05-20).
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 (£12,103–£22,592 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £255,000 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)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£675
after mortgage, operating costs & tax
Rent in£2,984/mo gross
£2,869/mo collected · £115/mo lost to voids
Where it goes
£1,381Mortgage£655Costs£675Your profit
£675/mo left as profit · 24% of rent kept
Mortgage£1,381
Costs£655
Management£298
Maintenance£67
Insurance£28
CapEx reserve£149
Voids + council tax£8
Ltd co. accounts£104
Tax£158
Profit+£675
Returns
Return before costs on price10.53%
Cash return on cash6.07%
Gross margin£2,215
Cash needed£133,387
Monthly profit payback16y 6m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.08
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 | £35,808 | £7,854 | £16,575 | £0 | £2,162 | £9,217 | £9,217 |
| Year 2 | £36,882 | £8,090 | £16,575 | £0 | £2,321 | £9,896 | £19,113 |
| Year 3 | £37,989 | £8,333 | £16,575 | £0 | £2,485 | £10,596 | £29,709 |
| Year 4 | £39,128 | £8,582 | £16,575 | £0 | £2,654 | £11,317 | £41,026 |
| Year 5 | £40,302 | £8,840 | £16,575 | £0 | £2,829 | £12,058 | £53,085 |
Disposal gain (gross)-£16,284
CGT£0
Net Disposal proceeds£366,003
What we verified
What we verified
60066 ok · 0 caution · 0 fail · 6 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
1 checks- TenureFreehold
Council planning restrictionUnknown
Council planning restrictionRent by the room conversion gatePlanning data
Conversion approvability
Per-property planning assessment
Likely approvable77% likely
Confidence: medium
- Article 4 direction applies — planning permission required for C3->C4 HMO
- concentration ~1.0% within 100m (1 known HMOs) — below the 10% threshold
- local council HMO approval rate 78% (179 decisions)
- this council refuses HMOs that would sandwich a family home between two HMOs — check both adjoining properties
- NO licensed-HMO register published by this council — the count below reflects granted planning decisions only and materially understates actual HMO density
Rent by the room concentration nearby
≈1.0% within 100 m vs 10% policy
1 known HMO within 100 m
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
⚠️ Selective Licensing in scope
Additional HMO — city-wide
Rates as of May 2026
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
SchoolsChecking…
Schools& Ofsted catchmentGIAS register
No schools indexed for this postcode sector.
Investor
Tenant profileFamily let
Tenant profilelikely cohortCV4 7DL · 4 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
Birmingham City · 25.4 km
Reason
4-bed house in a suburban area — family-let demand dominates; larger property may also work as a sharer HMO.
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
4-bed · 2-bath · 947 sqft
£28k–£54k
£ per sqft
building cost only
£29–£57
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£6,629–£12,311
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£10,417–£19,887
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingStandard rules
HMO licensing5-year licenceCouncil
Licence fee
5-year mandatory
£825–£1,500
Scheme type
Check council
The council's HMO page lists the current mandatory fee plus any additional / selective scheme that catches smaller HMOs.
Mandatory licensing applies to 5+ sharer HMOs (Housing Act 2004)
Find council HMO page →Price & sale history470d on marketno cuts yet
Strategy matrix
Council lease wins — +£774/mo · £99/mo ahead of Rent it out
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 10.53% | +£675 | £133,387 | 39.8% | Low | Feasible |
| Housing-benefit rent | 3.52% | -£845 | £133,387 | -32.9% | Med | Feasible |
| ⭐ Council lease | 10.53% | +£774 | £133,387 | 40.1% | Low | Feasible |
| Refurb & refinance | 10.53% | +£675 | £156,842 | 33.8% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£199 | £388,742 | 5% | Med | Feasible |
| Rent by the room | 4.45% * | +£236 | £123,571 | — | — | Feasible |
* Rent by the room shows net yield on cost for the audited HMO conversion deal (post-conversion, after running costs) — not gross like the other rows. Its 5-yr ROI reads “—” because the audited deal is a year-one snapshot; the HMO conversion panel below shows the cash-back / payback horizon.
Housing-benefit (LHA) scheme detailBRMA Coventry · cap £997/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Coventry
- LHA monthly cap:
- £997
- Scheme type:
- nominee
- Premium:
- +1000% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- landlord pays agent (typical 10%)
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
-£1,037/mo cash flow vs Rent it out if converted to Rent by the room
8.47% Return before costs on price converted vs 10.53% as-is
£340k → 5-bed HMO @ ~£507/room: £2,466 pcm gross, ~£1,404 pcm net (4.5% net on £379k all-in incl. ~£12k works); GDV ~£198k → refinance releases ~£-106k (~£230k left in)
medium confidence
Unlocks ~£6,708/yr extra rent
4 → 5 lettable rooms · ~5.2% gross at max
Potential, not guaranteed (subject to planning + regs). Estimate from the floorplan (kitchen size assumed) — verify room sizes against the floorplan before offering.
How we calculated this
floorplan shows 6 habitable rooms (4 beds + 2 reception(s)) in 100 m²; convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 5 lettable rooms (0 double, 1 single); sized to Coventry adopted standard (6.51/10.22 m²; Amenities and Facilities Guide for HMOs (Coventry City Council, room-size/amenity table, doc dated Nov 2020, live-linked from current site); HMO licence fee page + Oct-2025 fee-update bulletin; Additional HMO Licensing Scheme 2025-2030); adds ~£559/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); mandatory HMO licence (5+ persons, England); Article 4 — planning permission needed
🔒 Room-add markup · Pro
Pro members see the floorplan with every convertible room outlined in green. Verify room sizes before offering.
4 → 5 bed HMO+1 single4.45% net on cost2.29% cash-on-cashuplift 5.8% → 5.2%
💷 Refinance could release ~-£106,308
HMO licence
Sized to Coventry's adopted HMO standards
Projections use documented assumptions (local room rates, typical conversion costs, 75% LTV at 5.5%, indicative regional valuation yields) and each council’s published HMO standards. Not financial advice. Verify room sizes, licensing and planning with the council and a surveyor before purchase.
Room mix (4 lettable rooms)
2× Double @ £587/mo1× Single @ £473/mo1× En-suite @ £589/mo
≈ £2,236/mo gross room income
As-is Rent it out
Monthly profit+£721
Return before costs on price10.53%
Cash needed£96,898
If converted to Rent by the room
Monthly profit-£315
Return before costs on price8.47%
Cash needed£112,898
Δ vs Rent it out Monthly profit-£1,037
+1 room (5 total)
Monthly profit-£30
Return before costs on price9.86%
Cash needed£122,898
Extra rent+£559/mo
Show conversion detail
Conversion cost estimate
£28,600
Range: £22,000 – £37,400
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Likely approvable · 77% likely
medium confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- concentration ~1.0% within 100m (1 known HMOs) — below the 10% threshold
- local council HMO approval rate 78% (179 decisions)
1 known HMO within 100 m · ≈1.0% within 100 m vs 10% policy
£56,519–£106,253full refurb + room split
What's in this cost
- Kitchen£9,180–£18,360
- 2 × bathroom£12,300–£22,550
- Rewire£3,788–£6,629
- Replumb£2,841–£5,682
- Windows£9,470–£17,046
- Paint + decor£7,576–£14,205
- Flooring£11,364–£21,781
Based on 3509 HMO comps within 539 m
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
HMO - 30.9.23
1 known HMO within 100 m · ≈1.0% within 100 m vs 10% policy
Schools & catchment1 school nearby
Nearby schoolsOfsted-rated, nearest first1 of 5
- GoodCannon Park Primary SchoolPrimary · Community school · CV4 7PS
Ofsted · postcode-area match. Catchment areas vary year to year — verify with the local council before relying for school admissions.
Tax treatment
Annual gross rent£35,808
Section 24 credit£0
Annual tax due£2,162
Post-tax Monthly profit annual£7,840
Exit costs
Projected sale price (5y · 2%/yr growth)£375,387
Capital gain (pre-CGT)£35,387
Sale costs (~2.5%)£9,385
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£53,085
Rates as of Oct 2024
Acquisition costs
£133,387cash neededPurchase price£340,000
Deposit (25%)£85,000
Stamp duty+5% additional-property surcharge£24,000
Refurb£16,137
Legal + survey£2,150
Mortgage fees£6,100
Total cash neededdeposit + costs (loan covers the rest)£133,387
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Description
Vesta Properties Agency are delighted to offer to the market this three bedroom property in the highly sought after Cannon Park area. The lounge of this property has previously been used as a fourth bedroom.
The property is located close to Cannon Park shopping centre and the univeristy of Warwick being an ideal location for investors and families.
Comprising entrance hall, lounge, fitted kitchen diner, WC, integrated appliances, double glazed windows and gas c…
Floor plans
Listing metazoopla · Vesta Properties Agency Ltd
About this listing
470 days · ZooplaPrice history
5-year price trend
Monthly profit
+£675
Cash needed
£133K
Return after costs
6.07%
IRR
6.37%
Listed 470d ago
Cloud Green, Coventry CV4
semi-detached · 4 bed · 2 bath · 947 sqft
£340,000
est £2,984 · 10.53% gross
EPC C
1 / 35
59/100
Caution
Real 10.53% — fundamentals work.
Monthly profit +£675/mo at 25% deposit @ 5.5%
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
10.53% Return before costs — above-market
Price
£340K
Return before costs
10.53%
est rent £2,984/monot enough comparablesRange £2,175–£4,094/mo (Q1–Q3)
Bedrooms
4
2 bath
Energy rating
C
Energy rating
Run the numbers
What-if calculator
Rates as of 20 May 2026Buy-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: £2,175–£4,094/mo · n=9
Financing
DepositYour cash in — the rest is the mortgage25% · £85,000
Standard 75% LTV for BTL
Mortgage rate5y fixed5.8%
5-year fixed at 75% LTV — 5.75% (as of 2026-05-20).
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 (£12,103–£22,592 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £255,000 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)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£675
after mortgage, operating costs & tax
Rent in£2,984/mo gross
£2,869/mo collected · £115/mo lost to voids
Where it goes
£1,381Mortgage£655Costs£675Your profit
£675/mo left as profit · 24% of rent kept
Mortgage£1,381
Costs£655
Management£298
Maintenance£67
Insurance£28
CapEx reserve£149
Voids + council tax£8
Ltd co. accounts£104
Tax£158
Profit+£675
Returns
Return before costs on price10.53%
Cash return on cash6.07%
Gross margin£2,215
Cash needed£133,387
Monthly profit payback16y 6m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.08
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Coventry · cap £997/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Coventry
- LHA monthly cap:
- £997
- Scheme type:
- nominee
- Premium:
- +1000% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- landlord pays agent (typical 10%)
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 | £35,808 | £7,854 | £16,575 | £0 | £2,162 | £9,217 | £9,217 |
| Year 2 | £36,882 | £8,090 | £16,575 | £0 | £2,321 | £9,896 | £19,113 |
| Year 3 | £37,989 | £8,333 | £16,575 | £0 | £2,485 | £10,596 | £29,709 |
| Year 4 | £39,128 | £8,582 | £16,575 | £0 | £2,654 | £11,317 | £41,026 |
| Year 5 | £40,302 | £8,840 | £16,575 | £0 | £2,829 | £12,058 | £53,085 |
Rent by the room upside
What we verified
6006
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 · OfstedChecking…
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£3,315
Annual rental tax£1,900
CGT yr 5£0 · company level
5y net total£53,085
Acquisition costs
25% deposit£85,000
Stamp duty£24,000
Refurb£16,137
Legal + survey£2,150
Mortgage + broker£6,100
Cash needed£133,387
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 copyZoopla
Description
Vesta Properties Agency are delighted to offer to the market this three bedroom property in the highly sought after Cannon Park area. The lounge of this property has previously been used as a fourth bedroom.
The property is located close to Cannon Park shopping centre and the univeristy of Warwick being an ideal location for investors and families.
Comprising entrance hall, lounge, fitted kitchen diner, WC, integrated appliances, double glazed windows and gas c…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice