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Year 5 disposal
⊞ View all 16
16/ 100
Weak
6.60% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- Long lease (101 yrs) — no short-lease drag
Why to be cautious
- EPC D — must hit C by 2030 (~£3,000–£7,000)
- Monthly profit −£252/mo — significantly negative — real recurring drain
- -3.3% 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.
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£252/mo
You top up £252/mo
Price vs market
Above comparable sales
+27% vs 12 sold
Return · IRR
-3.3%/yr
Loses money over 5 years
Cash to get in
£99K
Deposit + fees + refurb
Price £285KReturn before costs on price 6.60%5-yr return on cash -8%Rent est. £1,568 (£1,461–£1,683)
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: £1,461–£1,683/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £71,250
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 (£1,013–£1,890 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,875 legal + £650 survey
Mortgage fees (£)
2% product fee on £213,750 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
-£252
after mortgage, operating costs & tax
Rent in£1,568/mo gross
£1,508/mo collected · £60/mo lost to voids
Where it goes
£1,158Mortgage£602Costs
Outgoings exceed rent — you top up £252/mo
Mortgage£1,158
Costs£602
Management£157
Maintenance£67
Insurance£28
CapEx reserve£78
Voids + council tax£7
Service charge + ground rent£161
Ltd co. accounts£104
Tax—
Shortfall−£252
Returns
Return before costs on price6.60%
Cash return on cash-3.06%
Gross margin£906
Cash needed£98,900
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.30
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 | £18,816 | £7,222 | £13,894 | £0 | £0 | -£2,300 | -£2,300 |
| Year 2 | £19,380 | £7,439 | £13,894 | £0 | £0 | -£1,952 | -£4,252 |
| Year 3 | £19,962 | £7,662 | £13,894 | £0 | £0 | -£1,594 | -£5,847 |
| Year 4 | £20,561 | £7,892 | £13,894 | £0 | £0 | -£1,225 | -£7,072 |
| Year 5 | £21,178 | £8,129 | £13,894 | £0 | £0 | -£845 | -£7,917 |
Disposal gain (gross)-£579
CGT£0
Net Disposal proceeds£306,796
What we verified
What we verified
42054 ok · 2 caution · 0 fail · 5 unknown
Legal & planning
Leasehold101 yr
Tenure & planning101 yr
Legal & planning
2 checks- TenureLeasehold
- Lease lengthUnknown
Building condition
Energy ratingD
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand D
MEES 2030 compliance
C required for new tenancies
FAIL
Upgrade to C
estimated cost
£3k–£7k
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 cohortRH1 3DJ · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
Imperial College · 26.1 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 · 2-bath · 727 sqft
£24k–£47k
£ per sqft
building cost only
£32–£64
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£5,089–£9,451
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£7,997–£15,267
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history86d on marketno cuts yet
Strategy matrix
Rent it out wins — -£252/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 | 6.60% | -£252 | £98,900 | -8.0% | Low | Feasible |
| Housing-benefit rent | 4.62% | -£705 | £98,900 | -35.6% | Med | Feasible |
| Council lease | 4.62% | -£476 | £98,900 | -26.3% | Low | Feasible |
| Refurb & refinance | 6.60% | -£252 | £113,690 | -7.0% | Med | Feasible |
| Short-stay let / Airbnb | 3.22% | -£1,146 | £98,900 | -69.2% | High | Feasible |
| Buy, improve & sell | 0.00% | -£360 | £307,915 | 9% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Short-let (SA) context284 active short-lets nearby
Short-let market context
- 284 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Crawley & Reigate · cap £1,097/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Crawley & Reigate
- LHA monthly cap:
- £1,097
- Scheme type:
- other
- Premium:
- +0% premium over LHA cap
- 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
Local lettings demandby strategyLive area data
Short-stay let36% occupancy
£70/night ADR
Based on 7 short-let comps nearby
Rent by the room conversion upside
-£57/mo cash flow vs Rent it out if converted to Rent by the room
10.11% Return before costs on price converted vs 6.60% as-is
As-is Rent it out
Monthly profit-£44
Return before costs on price6.60%
Cash needed£83,148
If converted to Rent by the room
Monthly profit-£101
Return before costs on price10.11%
Cash needed£99,148
Δ vs Rent it out Monthly profit-£57
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
£40,000
Range: £34,000 – £48,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£45,485–£85,435full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 2 × bathroom£11,400–£20,900
- Rewire£2,908–£5,089
- Replumb£2,181–£4,362
- Windows£7,270–£13,086
- Paint + decor£5,089–£9,451
- Flooring£7,997–£15,267
Comparables
sold within 0.5 miWide · CV 23.2%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
- OutstandingLime Tree Primary School and NurseryPrimary · Academy sponsor led · RH1 3LH
- GoodFurzefield Primary AcademyPrimary · Academy converter · RH1 3PA
- GoodMerstham Primary SchoolPrimary · Academy converter · RH1 3AZ
- Not ratedAurora Chaldon SchoolNot applicable · Other independent special school · RH1 3DB
- Not ratedWoodfield SchoolNot applicable · Community special school · RH1 3PR
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£18,816
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£3,024
Exit costs
Projected sale price (5y · 2%/yr growth)£314,663
Capital gain (pre-CGT)£29,663
Sale costs (~2.5%)£7,867
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-£7,917
Rates as of Oct 2024
Acquisition costs
£98,900cash neededPurchase price£285,000
Deposit (25%)£71,250
Stamp duty+5% additional-property surcharge£18,500
Refurb£1,350
Legal + survey£2,525
Mortgage fees£5,275
Total cash neededdeposit + costs (loan covers the rest)£98,900
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Guide Price £300,000 - £315,000
Positioned on the popular Station Road North, this thoughtfully updated top-floor apartment at Stephenson Place offers a comfortable and well-presented home within a modern development built in the early 2000s. Recently refurbished by the current owner, the property provides a fresh, move-in-ready space that will appeal to anyone looking for practical, low-maintenance living in a convenient setting. Available chain free for buyers convenience.
Floor plans
Nearby active comparables10 rentals
Comparable rentals
RH1 · same beds + typeMedian nearby: £1,650/mo · 10 of 10 already let+£82 vs our est
- at Pure Resi, 51 Queensgate, Cromwell…Let2b£1,650/moMay 2026
- Chilworth Court, Redhill, RH1Let2b£1,650/moMay 2026
- Reed Drive, Redhill, RH1Let2b£1,750/moMay 2026
- St. Annes Mount, Redhill, RH1Let2b£1,700/moMay 2026
- Marketfield Road, Redhill RH1Let2b£2,150/moMay 2026
- Cromwell Road, Redhill, RH1Let2b£1,650/moMay 2026
- at Pure Resi, 44 Queensgate, Cromwell…Let2b£1,650/moMay 2026
- Lancaster House, Redhill, RH1Let2b£1,750/moMay 2026
- Talfourd Way, REDHILL, RH1Let2b£1,600/moMay 2026
- Flat, London Road North, Merstham, Re…Let2b£1,650/moMay 2026
Other deals nearby
RH1 · ±25% priceNo other nearby investment deals matched on postcode prefix + bedrooms.
Listing metazoopla · Ralph James
About this listing
86 days · ZooplaPrice history
5-year price trend
Monthly profit
−£252
Cash needed
£99K
Return after costs
-3.06%
IRR
-3.26%
Listed 86d ago
Station Road North, Merstham, Redhill RH1
flat · 2 bed · 2 bath · 727 sqft
£285,000
est £1,568 · 6.60% gross
Chain freeLeasehold 101yrEPC D
1 / 16
16/100
Marginal
6.60% — verify the rent + comps locally.
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Chain free
Price
£285K
27% above sold comps
Return before costs
6.60%
est rent £1,568/monot enough comparablesRange £1,461–£1,683/mo (Q1–Q3)
Bedrooms
2
2 bath
Energy rating
D
Energy rating
Deal flags1 issue
EPC D — upgrade by 2030
Must reach EPC C by 2030 to let on a new tenancy
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: £1,461–£1,683/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £71,250
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 (£1,013–£1,890 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,875 legal + £650 survey
Mortgage fees (£)
2% product fee on £213,750 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
-£252
after mortgage, operating costs & tax
Rent in£1,568/mo gross
£1,508/mo collected · £60/mo lost to voids
Where it goes
£1,158Mortgage£602Costs
Outgoings exceed rent — you top up £252/mo
Mortgage£1,158
Costs£602
Management£157
Maintenance£67
Insurance£28
CapEx reserve£78
Voids + council tax£7
Service charge + ground rent£161
Ltd co. accounts£104
Tax—
Shortfall−£252
Returns
Return before costs on price6.60%
Cash return on cash-3.06%
Gross margin£906
Cash needed£98,900
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.30
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Short-let (SA) context284 active short-lets nearby
Short-let market context
- 284 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Crawley & Reigate · cap £1,097/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Crawley & Reigate
- LHA monthly cap:
- £1,097
- Scheme type:
- other
- Premium:
- +0% premium over LHA cap
- 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 | £18,816 | £7,222 | £13,894 | £0 | £0 | -£2,300 | -£2,300 |
| Year 2 | £19,380 | £7,439 | £13,894 | £0 | £0 | -£1,952 | -£4,252 |
| Year 3 | £19,962 | £7,662 | £13,894 | £0 | £0 | -£1,594 | -£5,847 |
| Year 4 | £20,561 | £7,892 | £13,894 | £0 | £0 | -£1,225 | -£7,072 |
| Year 5 | £21,178 | £8,129 | £13,894 | £0 | £0 | -£845 | -£7,917 |
Rent by the room upside
What we verified
5306
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining101 yr
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPC~£3,000–£7,000 to upgrade to CD
EWS1External wall safety (cladding)Not stated on the listing
Refurb costBased on beds + baths + sqftEstimate available
Service chargeReduces net yield£1,680/yr
Ground rentDoubling clauses kill mortgageability£250/yr
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 23.2%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,779
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£7,917
Acquisition costs
25% deposit£71,250
Stamp duty£18,500
Refurb£1,350
Legal + survey£2,525
Mortgage + broker£5,275
Cash needed£98,900
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
Guide Price £300,000 - £315,000
Positioned on the popular Station Road North, this thoughtfully updated top-floor apartment at Stephenson Place offers a comfortable and well-presented home within a modern development built in the early 2000s. Recently refurbished by the current owner, the property provides a fresh, move-in-ready space that will appeal to anyone looking for practical, low-maintenance living in a convenient setting. Available chain free for buyers convenience.
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice