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Year 5 disposal
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40/ 100
Caution
8.00% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 8.00% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- Long lease (128 yrs) — no short-lease drag
Why to be cautious
- Monthly profit −£151/mo — mildly negative — equity build may cover
- -3.6% 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
−£151/mo
You top up £151/mo
Price
£120K
Around comparable sold prices
Return · IRR
-3.6%/yr
Loses money over 5 years
Cash to get in
£50K
Deposit + fees + refurb
Return before costs on price 8.00%5-yr return on cash -12%Rent est. £800 (£718–£891)
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: £718–£891/mo · n=12
Financing
DepositYour cash in — the rest is the mortgage25% · £30,000
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 (£6,760–£12,618 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £90,000 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 sub-£200K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£151
after mortgage, operating costs & tax
Rent in£800/mo gross
£769/mo collected · £31/mo lost to voids
Where it goes
£488Mortgage£433Costs
Outgoings exceed rent — you top up £151/mo
Mortgage£488
Costs£433
Management£80
Maintenance£67
Insurance£20
CapEx reserve£40
Voids + council tax£5
Service charge + ground rent£116
Ltd co. accounts£104
Tax—
Shortfall−£151
Returns
Return before costs on price8.00%
Cash return on cash-3.63%
Gross margin£337
Cash needed£49,813
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.58
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 | £9,600 | £5,191 | £5,850 | £0 | £0 | -£1,441 | -£1,441 |
| Year 2 | £9,888 | £5,347 | £5,850 | £0 | £0 | -£1,309 | -£2,750 |
| Year 3 | £10,185 | £5,507 | £5,850 | £0 | £0 | -£1,172 | -£3,922 |
| Year 4 | £10,490 | £5,672 | £5,850 | £0 | £0 | -£1,032 | -£4,954 |
| Year 5 | £10,805 | £5,843 | £5,850 | £0 | £0 | -£888 | -£5,842 |
Disposal gain (gross)-£7,836
CGT£0
Net Disposal proceeds£129,177
What we verified
What we verified
41064 ok · 1 caution · 0 fail · 6 unknown
Legal & planning
Leasehold128 yr
Leaseholdmaterial factsListing extract
Ground rent
Doubling = lender risk
£103/yr
Service charge
Annual running cost
£1,286/yr
Extracted from listing description · verify with solicitor
Tenure & planning128 yr
Legal & planning
2 checks- TenureLeasehold
- 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
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 cohortLN6 8RQ · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
Nottingham Trent · 45.9 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 · 559 sqft
£17k–£34k
£ per sqft
building cost only
£31–£61
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£3,913–£7,267
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£6,149–£11,739
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history151d on marketno cuts yet
Strategy matrix
Rent it out wins — -£151/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 | 8.00% | -£151 | £49,813 | -11.7% | Low | Feasible |
| Housing-benefit rent | 5.98% | -£355 | £49,813 | -35.9% | Med | Feasible |
| Council lease | 0.00% | -£795 | £49,813 | -98.0% | Low | Feasible |
| Refurb & refinance | 8.00% | -£151 | £59,418 | -9.8% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£307 | £140,618 | 2% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Housing-benefit (LHA) scheme detailBRMA Lincoln · cap £598/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Lincoln
- LHA monthly cap:
- £598
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
+£463/mo cash flow vs Rent it out if converted to Rent by the room
24.00% Return before costs on price converted vs 8.00% as-is
As-is Rent it out
Monthly profit-£22
Return before costs on price8.00%
Cash needed£41,898
If converted to Rent by the room
Monthly profit+£441
Return before costs on price24.00%
Cash needed£57,898
Δ vs Rent it out Monthly profit+£463
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
£33,905–£64,065full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 1 × bathroom£5,700–£10,450
- Rewire£2,236–£3,913
- Replumb£1,677–£3,354
- Windows£5,590–£10,062
- Paint + decor£3,913–£7,267
- Flooring£6,149–£11,739
Comparables
sold within 0.5 miWide · CV 16.9%Med confidence
Loading 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
- GoodThe Lincoln Manor Leas Infants SchoolPrimary · Academy converter · LN6 8BE
- Not ratedThe Lincoln St Christopher's SchoolNot applicable · Community special school · LN6 8AR
- Not ratedFosse Way AcademyPrimary · Academy converter · LN6 8DU
- Not ratedLing Moor Primary AcademyPrimary · Academy converter · LN6 8QZ
- Not ratedThe Lincoln Manor Leas Junior SchoolPrimary · Academy converter · LN6 8BE
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£9,600
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£1,810
Exit costs
Projected sale price (5y · 2%/yr growth)£132,490
Capital gain (pre-CGT)£12,490
Sale costs (~2.5%)£3,312
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-£5,842
Rates as of Oct 2024
Acquisition costs
£49,813cash neededPurchase price£120,000
Deposit (25%)£30,000
Stamp duty+5% additional-property surcharge£6,000
Refurb£9,013
Legal + survey£2,000
Mortgage fees£2,800
Total cash neededdeposit + costs (loan covers the rest)£49,813
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
39 Heather Gardens, North Hykeham, Lincoln, LN6 8RQ
Stylish Two-Bedroom First Floor Apartment in a Popular Residential Location
Situated in the highly sought-after area of North Hykeham, this well-presented two-bedroom first floor apartment offers an excellent opportunity for first-time buyers and investors alike. With a potential rental income of approximately £850 per calendar month, the property represents a strong addition to any portfolio.
The apartment is positioned…
Floor plans
Listing metazoopla · Your Move - North Hykeham
About this listing
151 days · ZooplaPrice history
5-year price trend
Monthly profit
−£151
Cash needed
£50K
Return after costs
-3.63%
IRR
-3.56%
Listed 151d ago
Heather Gardens, North Hykeham, Lincoln, Lincolnshire LN6
flat · 2 bed · 1 bath · 559 sqft
£120,000
est £800 · 8.00% gross
Leasehold 128yr
1 / 9
40/100
Caution
8.00% — verify the rent + comps locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
8.00% Return before costs — above-market
Price
£120K
1% above sold comps
Return before costs
8.00%
est rent £800/monot enough comparablesRange £718–£891/mo (Q1–Q3)
Bedrooms
2
1 bath
Energy rating
—
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: £718–£891/mo · n=12
Financing
DepositYour cash in — the rest is the mortgage25% · £30,000
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 (£6,760–£12,618 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £90,000 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 sub-£200K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£151
after mortgage, operating costs & tax
Rent in£800/mo gross
£769/mo collected · £31/mo lost to voids
Where it goes
£488Mortgage£433Costs
Outgoings exceed rent — you top up £151/mo
Mortgage£488
Costs£433
Management£80
Maintenance£67
Insurance£20
CapEx reserve£40
Voids + council tax£5
Service charge + ground rent£116
Ltd co. accounts£104
Tax—
Shortfall−£151
Returns
Return before costs on price8.00%
Cash return on cash-3.63%
Gross margin£337
Cash needed£49,813
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.58
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Lincoln · cap £598/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Lincoln
- LHA monthly cap:
- £598
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 | £9,600 | £5,191 | £5,850 | £0 | £0 | -£1,441 | -£1,441 |
| Year 2 | £9,888 | £5,347 | £5,850 | £0 | £0 | -£1,309 | -£2,750 |
| Year 3 | £10,185 | £5,507 | £5,850 | £0 | £0 | -£1,172 | -£3,922 |
| Year 4 | £10,490 | £5,672 | £5,850 | £0 | £0 | -£1,032 | -£4,954 |
| Year 5 | £10,805 | £5,843 | £5,850 | £0 | £0 | -£888 | -£5,842 |
Rent by the room upside
What we verified
5207
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining128 yr
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
Service chargeReduces net yield£1,286/yr
Ground rentDoubling clauses kill mortgageability£103/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 16.9%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,170
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£5,842
Acquisition costs
25% deposit£30,000
Stamp duty£6,000
Refurb£9,013
Legal + survey£2,000
Mortgage + broker£2,800
Cash needed£49,813
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
39 Heather Gardens, North Hykeham, Lincoln, LN6 8RQ
Stylish Two-Bedroom First Floor Apartment in a Popular Residential Location
Situated in the highly sought-after area of North Hykeham, this well-presented two-bedroom first floor apartment offers an excellent opportunity for first-time buyers and investors alike. With a potential rental income of approximately £850 per calendar month, the property represents a strong addition to any portfolio.
The apartment is positioned…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice