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Year 5 disposal
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100/ 100
Strong
Strong investment fundamentals.
Why it works
- 8.87% return before costs — above-market
- 13.1% Rent by the room return before costs (net 6.57% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- Long lease (979 yrs) — no short-lease drag
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
+£58/mo
Barely breaks even each month
Price
£143K
No local sold comps to compare
Return · IRR
1.5%/yr
Modest annualised return
Cash to get in
£63K
Deposit + fees + refurb
Return before costs on price · Rent by the room 13.06%5-yr return on cash 12%Rent est. £1,053 (£998–£1,111)
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: £998–£1,111/mo · n=13
Financing
DepositYour cash in — the rest is the mortgage25% · £35,625
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 (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £106,875 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
+£58
after mortgage, operating costs & tax
Rent in£1,053/mo gross
£1,013/mo collected · £41/mo lost to voids
Where it goes
£579Mortgage£361Costs
£58/mo left as profit · 6% of rent kept
Mortgage£579
Costs£361
Management£105
Maintenance£50
Insurance£20
CapEx reserve£53
Voids + council tax£6
Service charge + ground rent£23
Ltd co. accounts£104
Tax£14
Profit+£58
Returns
Return before costs on price8.87%
Cash return on cash1.11%
Gross margin£651
Cash needed£63,349
Monthly profit payback90y 4m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.75
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 | £12,636 | £4,337 | £6,947 | £0 | £257 | £1,095 | £1,095 |
| Year 2 | £13,015 | £4,468 | £6,947 | £0 | £304 | £1,297 | £2,391 |
| Year 3 | £13,406 | £4,602 | £6,947 | £0 | £353 | £1,504 | £3,896 |
| Year 4 | £13,808 | £4,740 | £6,947 | £0 | £403 | £1,718 | £5,614 |
| Year 5 | £14,222 | £4,882 | £6,947 | £0 | £455 | £1,938 | £7,552 |
Disposal gain (gross)-£13,688
CGT£0
Net Disposal proceeds£153,398
What we verified
What we verified
60066 ok · 0 caution · 0 fail · 6 unknown
Legal & planning
Leasehold979 yr
Leaseholdmaterial factsListing extract
Ground rent
Doubling = lender risk
£150/yr
Extracted from listing description · verify with solicitor
Tenure & planning979 yr
Legal & planning
2 checks- TenureLeasehold
- Lease lengthUnknown
Council planning restrictionUnknown
Council planning restrictionRent by the room conversion gatePlanning data
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
Rates as of May 2026
Building condition
Energy ratingB
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand B
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 cohortLN6 9ZR · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
Nottingham Trent · 45.1 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
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 history80d on marketno cuts yet
Strategy matrix
Rent it out wins — +£58/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 | 8.87% | +£58 | £63,349 | 11.9% | Low | Feasible |
| Housing-benefit rent | 5.67% | -£282 | £63,349 | -19.8% | Med | Feasible |
| Council lease | 0.00% | -£776 | £63,349 | -74.7% | Low | Feasible |
| Refurb & refinance | 8.87% | +£58 | £76,518 | 9.9% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£197 | £173,130 | -0% | Med | Feasible |
| Rent by the room | 13.06% | -£745 | £89,349 | -42.1% | — | Feasible |
Housing-benefit (LHA) scheme detailBRMA Lincoln · cap £673/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Lincoln
- LHA monthly cap:
- £673
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
+£293/mo cash flow vs Rent it out if converted to Rent by the room
20.21% Return before costs on price converted vs 8.87% as-is
Room mix (3 lettable rooms)
1× Double @ £539/mo1× Single @ £415/mo1× En-suite @ £596/mo
≈ £1,551/mo gross room income
As-is Rent it out
Monthly profit+£77
Return before costs on price8.87%
Cash needed£47,523
If converted to Rent by the room
Monthly profit+£369
Return before costs on price20.21%
Cash needed£63,523
Δ vs Rent it out Monthly profit+£293
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£45,489–£85,500full refurb + room split
⚠️ Capped at 60% of £142,500 asking (£85,500). Raw model: £48,990–£92,080. Verify with a surveyor before offering.
What's in this cost
- Kitchen£8,023–£16,045
- 1 × bathroom£5,293–£9,703
- Rewire£3,677–£6,435
- Replumb£2,758–£5,516
- Windows£9,193–£16,547
- Paint + decor£6,435–£11,950
- Flooring£10,112–£19,304
Based on 290 HMO comps within 2.3 km
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
Transport score90 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment5 schools nearby
Nearby schoolsOfsted-rated, nearest first5 of 5
- OutstandingWitham St Hughs AcademyPrimary · Academy converter · LN6 9WF
- GoodSwinderby All Saints Church of England Primary SchoolPrimary · Voluntary controlled school · LN6 9LU
- GoodThe North Hykeham All Saints Church of England Primary SchoolPrimary · Voluntary controlled school · LN6 9AB
- Not ratedKisimul SchoolNot applicable · Other independent special school · LN6 9LU
- Not ratedWitham Prospect SchoolNot applicable · Other independent special school · LN6 9JR
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£12,636
Section 24 credit£0
Annual tax due£257
Post-tax Monthly profit annual£609
Exit costs
Projected sale price (5y · 2%/yr growth)£157,332
Capital gain (pre-CGT)£14,832
Sale costs (~2.5%)£3,933
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£7,552
Rates as of Oct 2024
Acquisition costs
£63,349cash neededPurchase price£142,500
Deposit (25%)£35,625
Stamp duty+5% additional-property surcharge£7,475
Refurb£15,111
Legal + survey£2,000
Mortgage fees£3,138
Total cash neededdeposit + costs (loan covers the rest)£63,349
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Furnace Close, North Hykeham
Price Represents a 75% Share
Constructed around 2010 and positioned within a modern residential development in North Hykeham, this well-proportioned three-bedroom townhouse offers flexible living accommodation across three floors, making it an excellent opportunity for first-time buyers or young families looking to step onto the property ladder.
The property provides a comfortable and practical layout, with a spacious lounge, modern kitchen wit…
Floor plans
Listing metazoopla · Kinetic Estate Agents
About this listing
80 days · ZooplaPrice history
5-year price trend
Monthly profit
+£58
Cash needed
£63K
Return after costs
1.11%
IRR
1.45%
Listed 80d ago
Furnace Close, North Hykeham, Lincoln LN6
terraced · 3 bed · 1 bath
£142,500
est £1,053 · 8.87% gross
Leasehold 979yrEPC B
1 / 17
100/100
Strong
Real 13.06% — fundamentals work.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
8.87% Return before costs — above-market
13.1% Rent by the room Return before costs — conversion play
Price
£143K
Return before costs (best)
13.06%
Rent by the room
Bedrooms
3
1 bath
Energy rating
B
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: £998–£1,111/mo · n=13
Financing
DepositYour cash in — the rest is the mortgage25% · £35,625
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 (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £106,875 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
+£58
after mortgage, operating costs & tax
Rent in£1,053/mo gross
£1,013/mo collected · £41/mo lost to voids
Where it goes
£579Mortgage£361Costs
£58/mo left as profit · 6% of rent kept
Mortgage£579
Costs£361
Management£105
Maintenance£50
Insurance£20
CapEx reserve£53
Voids + council tax£6
Service charge + ground rent£23
Ltd co. accounts£104
Tax£14
Profit+£58
Returns
Return before costs on price8.87%
Cash return on cash1.11%
Gross margin£651
Cash needed£63,349
Monthly profit payback90y 4m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.75
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Lincoln · cap £673/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Lincoln
- LHA monthly cap:
- £673
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 | £12,636 | £4,337 | £6,947 | £0 | £257 | £1,095 | £1,095 |
| Year 2 | £13,015 | £4,468 | £6,947 | £0 | £304 | £1,297 | £2,391 |
| Year 3 | £13,406 | £4,602 | £6,947 | £0 | £353 | £1,504 | £3,896 |
| Year 4 | £13,808 | £4,740 | £6,947 | £0 | £403 | £1,718 | £5,614 |
| Year 5 | £14,222 | £4,882 | £6,947 | £0 | £455 | £1,938 | £7,552 |
Rent by the room upside
What we verified
8006
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
TenureLeasehold years remaining979 yr
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPCEnergy efficiency ratingB
EWS1External wall safety (cladding)Not stated on the listing
Refurb costBased on beds + baths + sqftEstimate available
Service chargeReduces net yield£120/yr
Ground rentDoubling clauses kill mortgageability£150/yr
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£1,389
Annual rental tax£164
CGT yr 5£0 · company level
5y net total£7,552
Acquisition costs
25% deposit£35,625
Stamp duty£7,475
Refurb£15,111
Legal + survey£2,000
Mortgage + broker£3,138
Cash needed£63,349
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
Furnace Close, North Hykeham
Price Represents a 75% Share
Constructed around 2010 and positioned within a modern residential development in North Hykeham, this well-proportioned three-bedroom townhouse offers flexible living accommodation across three floors, making it an excellent opportunity for first-time buyers or young families looking to step onto the property ladder.
The property provides a comfortable and practical layout, with a spacious lounge, modern kitchen wit…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice