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Year 5 disposal
BMV -14%
⊞ View all 17
33/ 100
Weak
9.35% return before costs — verify the rent + comps locally.
Why it works
- 9.35% return before costs — above-market
- Priced below market -14% vs 12 nearby sold (last 12 mo) — instant equity
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- Long lease (106 yrs) — no short-lease drag
Why to be cautious
- Service charge unknown — could swing £100-300/mo
- Monthly profit −£124/mo — mildly negative — equity build may cover
- -3.1% 5y IRR — capital outlay disproportionate to returns
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£124/mo
You top up £124/mo
Price vs market
Below market value
-14% vs 12 sold · interior unseen
Return · IRR
-3.1%/yr
Loses money over 5 years
Cash left in
£34K
Stays in after refinancing at value
Price £110KCash to buy £47KReturn before costs on price 9.35%5-yr return on cash -9%Rent est. £857 (£806–£911)
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: £806–£911/mo · n=88
Financing
DepositYour cash in — the rest is the mortgage25% · £27,500
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 (£6,965–£13,000 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £82,500 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)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£124
after mortgage, operating costs & tax
Rent in£857/mo gross
£824/mo collected · £33/mo lost to voids
Where it goes
£447Mortgage£501Costs
Outgoings exceed rent — you top up £124/mo
Mortgage£447
Costs£501
Management£86
Maintenance£67
Insurance£20
CapEx reserve£43
Voids + council tax£6
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£124
Returns
Return before costs on price9.35%
Cash return on cash-3.16%
Gross margin£323
Cash needed£46,936
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.84
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 | £10,284 | £6,011 | £5,363 | £0 | £0 | -£1,090 | -£1,090 |
| Year 2 | £10,593 | £6,191 | £5,363 | £0 | £0 | -£961 | -£2,051 |
| Year 3 | £10,910 | £6,377 | £5,363 | £0 | £0 | -£829 | -£2,880 |
| Year 4 | £11,238 | £6,568 | £5,363 | £0 | £0 | -£693 | -£3,574 |
| Year 5 | £11,575 | £6,766 | £5,363 | £0 | £0 | -£553 | -£4,127 |
Disposal gain (gross)-£8,373
CGT£0
Net Disposal proceeds£118,413
What we verified
What we verified
51055 ok · 1 caution · 0 fail · 5 unknown
Legal & planning
Leasehold106 yr
Tenure & planning106 yr
Legal & planning
2 checks- TenureLeasehold
- 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
EWS1& cladding statusListing signal
OKInfoVerifyCritical
Severity
Inferred from listing text
Verify
Lender impact
No EWS1 / floor info in description. Buildings > 11 m need EWS1 or PAS 9980 — confirm height + status with the agent before offering.
Verify with lender
A1/A2 = mortgageable · B1 = mortgageable with plan · B2 = remediation required
RICS EWS1 guidance →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 profileMixed demand
Tenant profilelikely cohortDE21 4TQ · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University of Nottingham · 18.5 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 · 581 sqft
£18k–£35k
£ per sqft
building cost only
£30–£60
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£4,067–£7,553
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£6,391–£12,201
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history172d on marketno cuts yet
Strategy matrix
Council lease wins — +£1/mo · £125/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 | 9.35% | -£124 | £46,936 | -8.8% | Low | Feasible |
| Housing-benefit rent | 6.47% | -£379 | £46,936 | -41.7% | Med | Feasible |
| ⭐ Council lease | 9.35% | +£1 | £46,936 | 3.0% | Low | Feasible |
| Refurb & refinance | 9.35% | -£124 | £56,150 | -7.4% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£366 | £130,500 | 1% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Housing-benefit (LHA) scheme detailBRMA Derby · cap £593/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Derby
- LHA monthly cap:
- £593
- Scheme type:
- PSL
- Premium:
- +800% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- management covered by council
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
+£421/mo cash flow vs Rent it out if converted to Rent by the room
26.18% Return before costs on price converted vs 9.35% as-is
As-is Rent it out
Monthly profit+£51
Return before costs on price9.35%
Cash needed£39,398
If converted to Rent by the room
Monthly profit+£472
Return before costs on price26.18%
Cash needed£55,398
Δ vs Rent it out Monthly profit+£421
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
£34,675–£65,495full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 1 × bathroom£5,700–£10,450
- Rewire£2,324–£4,067
- Replumb£1,743–£3,486
- Windows£5,810–£10,458
- Paint + decor£4,067–£7,553
- Flooring£6,391–£12,201
Comparables
sold within 0.5 miWide · CV 24.6%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment5 schools nearby
Nearby schoolsOfsted-rated, nearest first5 of 5
- GoodBreadsall Hill Top Primary SchoolPrimary · Academy sponsor led · DE21 4ET
- GoodCavendish Close Junior AcademyPrimary · Academy sponsor led · DE21 4RJ
- GoodRoe Farm Primary SchoolPrimary · Community school · DE21 4HG
- Not ratedSt Andrew's AcademyNot applicable · Academy special converter · DE21 4EW
- Not ratedCavendish Close Infant SchoolPrimary · Community school · DE21 4LY
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£10,284
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£1,485
Exit costs
Projected sale price (5y · 2%/yr growth)£121,449
Capital gain (pre-CGT)£11,449
Sale costs (~2.5%)£3,036
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-£4,127
Rates as of Oct 2024
Acquisition costs
£46,936cash neededPurchase price£110,000
Deposit (25%)£27,500
Stamp duty+5% additional-property surcharge£5,500
Refurb£9,286
Legal + survey£2,000
Mortgage fees£2,650
Total cash neededdeposit + costs (loan covers the rest)£46,936
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Summary A Two bedroom first floor flat in the sought after location of Chester Green, just a short walk from Derby City Centre and with allocated parking.
Description Ashley Adams are pleased to bring to market this two bedroom first floor flat, in the popular Chester Green. The property benefits from one allocated parking space in a private car park.
In brief, the property comprises of, and entrance hallway, two bedrooms, modern family bathroom, spacious lounge and newly d…
Floor plans
Listing metazoopla · Ashley Adams - Derby
About this listing
172 days · ZooplaPrice history
5-year price trend
Monthly profit
−£124
Cash needed
£47K
Return after costs
-3.16%
IRR
-3.10%
Listed 172d ago
Magnus Court, Chester Green, Derby DE21
flat · 2 bed · 1 bath · 581 sqft
£110,000
est £857 · 9.35% gross
Leasehold 106yrEPC C
Priced below market
1 / 17
33/100
Marginal
9.35% — verify the rent + comps locally.
Priced below market -14% vs 12 nearby sold (last 12 mo)
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
9.35% Return before costs — above-market
Price
£110K
14% below sold comps
Return before costs
9.35%
est rent £857/mo88 comps within 1.5 kmRange £806–£911/mo (Q1–Q3)
Bedrooms
2
1 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: £806–£911/mo · n=88
Financing
DepositYour cash in — the rest is the mortgage25% · £27,500
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 (£6,965–£13,000 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £82,500 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)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£124
after mortgage, operating costs & tax
Rent in£857/mo gross
£824/mo collected · £33/mo lost to voids
Where it goes
£447Mortgage£501Costs
Outgoings exceed rent — you top up £124/mo
Mortgage£447
Costs£501
Management£86
Maintenance£67
Insurance£20
CapEx reserve£43
Voids + council tax£6
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£124
Returns
Return before costs on price9.35%
Cash return on cash-3.16%
Gross margin£323
Cash needed£46,936
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.84
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Derby · cap £593/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Derby
- LHA monthly cap:
- £593
- Scheme type:
- PSL
- Premium:
- +800% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- management covered by council
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 | £10,284 | £6,011 | £5,363 | £0 | £0 | -£1,090 | -£1,090 |
| Year 2 | £10,593 | £6,191 | £5,363 | £0 | £0 | -£961 | -£2,051 |
| Year 3 | £10,910 | £6,377 | £5,363 | £0 | £0 | -£829 | -£2,880 |
| Year 4 | £11,238 | £6,568 | £5,363 | £0 | £0 | -£693 | -£3,574 |
| Year 5 | £11,575 | £6,766 | £5,363 | £0 | £0 | -£553 | -£4,127 |
Rent by the room upside
What we verified
4206
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining106 yr
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 let
Rent by the room feasibilityMin 3 beds for C4 routeBelow threshold
Comparables
sold within 0.5 miWide · CV 24.6%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,073
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£4,127
Acquisition costs
25% deposit£27,500
Stamp duty£5,500
Refurb£9,286
Legal + survey£2,000
Mortgage + broker£2,650
Cash needed£46,936
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 copyZoopla
Summary A Two bedroom first floor flat in the sought after location of Chester Green, just a short walk from Derby City Centre and with allocated parking.
Description Ashley Adams are pleased to bring to market this two bedroom first floor flat, in the popular Chester Green. The property benefits from one allocated parking space in a private car park.
In brief, the property comprises of, and entrance hallway, two bedrooms, modern family bathroom, spacious lounge and newly d…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice