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Year 5 disposal
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Weak
10.47% Housing-benefit rent return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 10.47% Housing-benefit rent return — guaranteed-tenant route
Why to be cautious
- Lease 62 yrs — mortgageability risk
- Monthly profit −£720/mo — heavily negative — needs monthly capital injection
- 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
−£720/mo
You top up £720/mo
Price
£70K
No local sold comps to compare
Return · IRR
—
Not modelled
Cash to get in
£31K
Deposit + fees + refurb
Return before costs on price · Housing-benefit rent 10.47%5-yr return on cash -142%
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 (£)
LHA known but no BRMA rent comps — cannot estimate market rent
Financing
DepositYour cash in — the rest is the mortgage25% · £17,500
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 (£4,813–£8,984 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £52,500 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)
Default £67/mo — type unknown
Leasehold costs
Result · Rent it out
Monthly profit
-£720
after mortgage, operating costs & tax
Rent in£0/mo
Where it goes
£284Mortgage£435Costs
Outgoings exceed rent — you top up £720/mo
Mortgage£284
Costs£435
Maintenance£67
Insurance£20
Voids + council tax£6
Service charge + ground rent£238
Ltd co. accounts£104
Tax—
Shortfall−£720
Returns
Return before costs on price0.00%
Cash return on cash-27.44%
Gross margin-£435
Cash needed£31,467
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.00
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 | £0 | £5,224 | £3,413 | £0 | £0 | -£8,636 | -£8,636 |
| Year 2 | £0 | £5,380 | £3,413 | £0 | £0 | -£8,793 | -£17,429 |
| Year 3 | £0 | £5,542 | £3,413 | £0 | £0 | -£8,954 | -£26,383 |
| Year 4 | £0 | £5,708 | £3,413 | £0 | £0 | -£9,120 | -£35,503 |
| Year 5 | £0 | £5,879 | £3,413 | £0 | £0 | -£9,292 | -£44,795 |
Disposal gain (gross)-£6,563
CGT£0
Net Disposal proceeds£75,354
What we verified
What we verified
21262 ok · 1 caution · 2 fail · 6 unknown
Legal & planning
Leasehold62 yr
Leaseholdmaterial factsListing extract
Lease remaining
Mortgageable ≥80yr
62 yr
Short lease — 62 years remaining
Most BTL lenders refuse leases under 80 years. Statutory lease extension typically costs £8k–£20k+ and adds 3–6 months to completion.
Extracted from listing description · verify with solicitor
Tenure & planning62 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
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 cohortSO31 7FP · 1 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University of Southampton · 11.5 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
1-bed · 1-bath · 630 sqft
£19k–£37k
£ per sqft
building cost only
£29–£58
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£4,410–£8,190
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£6,930–£13,230
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history86d on marketno cuts yet
Strategy matrix
Council lease wins — -£50/mo · £150/mo ahead of Housing-benefit rent
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 0.00% | -£720 | £31,467 | -142.4% | Low | Feasible |
| Housing-benefit rent | 11.97% | -£200 | £31,467 | -26.3% | Med | Feasible |
| ⭐ Council lease | 11.97% | -£50 | £31,467 | -6.9% | Low | Feasible |
| Refurb & refinance | 0.00% | -£720 | £37,534 | -119.3% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£429 | £84,484 | -2% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £698/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £698
- Scheme type:
- leasing
- Premium:
- +0% 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
+£1,075/mo cash flow vs Rent it out if converted to Rent by the room
41.14% Return before costs on price converted vs 0.00% as-is
As-is Rent it out
Monthly profit-£476
Return before costs on price0.00%
Cash needed£29,398
If converted to Rent by the room
Monthly profit+£599
Return before costs on price41.14%
Cash needed£45,398
Δ vs Rent it out Monthly profit+£1,075
Show conversion detail
Cannot Rent by the room:Only 1 bed — too small for an HMO (3+ unrelated tenants from 2+ households) without major reconfiguration.
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
Schools & catchment5 schools nearby
Nearby schoolsOfsted-rated, nearest first5 of 5
- GoodKing's Academy Lord WilsonNot applicable · Academy special converter · SO31 7NL
- GoodSarisbury Infant SchoolPrimary · Community school · SO31 7BJ
- Not ratedFair Ways SchoolNot applicable · Other independent special school · SO31 7HE
- Not ratedSarisbury Church of England Junior SchoolPrimary · Voluntary controlled school · SO31 7AP
- Not ratedBrookfield Community SchoolSecondary · Community school · SO31 7DU
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£0
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£8,636
Exit costs
Projected sale price (5y · 2%/yr growth)£77,286
Capital gain (pre-CGT)£7,286
Sale costs (~2.5%)£1,932
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-£44,795
Rates as of Oct 2024
Acquisition costs
£31,467cash neededPurchase price£70,000
Deposit (25%)£17,500
Stamp duty+5% additional-property surcharge£3,500
Refurb£6,417
Legal + survey£2,000
Mortgage fees£2,050
Total cash neededdeposit + costs (loan covers the rest)£31,467
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
The front door opens into the hall, which has a cupboard housing the hot water tank with some useful storage too. The shower room is fitted with a three-piece suite comprising a walk-in shower, wash hand basin and W.C. With tiling to the walls and heated towel rail. The living room is rectangular and can be zoned into a living and dining space with a forward-facing window overlooking the garden. The kitchen comprises worksurfaces, storage cupboards, a Velux-style roof light a…
Floor plans
Listing metazoopla · Robinson Reade Ltd
About this listing
86 days · ZooplaPrice history
5-year price trend
Monthly profit
−£720
Cash needed
£31K
Return after costs
-27.44%
IRR
—
Listed 86d ago
Sarisbury Gate, Park Gate SO31
1 bed · 1 bath
£70,000
Leasehold 62yr
1 / 11
0/100
Marginal
10.47% Housing-benefit rent strategy — market rent unverified, verify locally.
Lease 62 yrs — mortgage risk
Price
£70K
Return before costs (best)
10.47%
Housing-benefit rent
Bedrooms
1
1 bath
Energy rating
—
Energy rating
Deal flags1 issue
Lease — 62 yrs
Below 80 yrs — extend before remortgage or exit
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 (£)
LHA known but no BRMA rent comps — cannot estimate market rent
Financing
DepositYour cash in — the rest is the mortgage25% · £17,500
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 (£4,813–£8,984 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £52,500 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)
Default £67/mo — type unknown
Leasehold costs
Result · Rent it out
Monthly profit
-£720
after mortgage, operating costs & tax
Rent in£0/mo
Where it goes
£284Mortgage£435Costs
Outgoings exceed rent — you top up £720/mo
Mortgage£284
Costs£435
Maintenance£67
Insurance£20
Voids + council tax£6
Service charge + ground rent£238
Ltd co. accounts£104
Tax—
Shortfall−£720
Returns
Return before costs on price0.00%
Cash return on cash-27.44%
Gross margin-£435
Cash needed£31,467
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.00
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £698/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £698
- Scheme type:
- leasing
- Premium:
- +0% 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 | £0 | £5,224 | £3,413 | £0 | £0 | -£8,636 | -£8,636 |
| Year 2 | £0 | £5,380 | £3,413 | £0 | £0 | -£8,793 | -£17,429 |
| Year 3 | £0 | £5,542 | £3,413 | £0 | £0 | -£8,954 | -£26,383 |
| Year 4 | £0 | £5,708 | £3,413 | £0 | £0 | -£9,120 | -£35,503 |
| Year 5 | £0 | £5,879 | £3,413 | £0 | £0 | -£9,292 | -£44,795 |
Rent by the room upside
What we verified
4217
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining62 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£2,807/yr
Ground rentDoubling clauses kill mortgageability£50/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 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£683
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£44,795
Acquisition costs
25% deposit£17,500
Stamp duty£3,500
Refurb£6,417
Legal + survey£2,000
Mortgage + broker£2,050
Cash needed£31,467
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
The front door opens into the hall, which has a cupboard housing the hot water tank with some useful storage too. The shower room is fitted with a three-piece suite comprising a walk-in shower, wash hand basin and W.C. With tiling to the walls and heated towel rail. The living room is rectangular and can be zoned into a living and dining space with a forward-facing window overlooking the garden. The kitchen comprises worksurfaces, storage cupboards, a Velux-style roof light a…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice