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Year 5 disposal
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Caution
Real 9.29% return before costs but flagged risks need pricing in.
Why it works
- 9.29% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- Long lease (113 yrs) — no short-lease drag
- EPC C — MEES compliant
Why to be cautious
- Service charge unknown — could swing £100-300/mo
- Monthly profit −£139/mo — mildly negative — equity build may cover
- -3.5% 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
−£139/mo
You top up £139/mo
Price
£105K
No local sold comps to compare
Return · IRR
-3.5%/yr
Loses money over 5 years
Cash to get in
£47K
Deposit + fees + refurb
Return before costs on price 9.29%5-yr return on cash -11%Rent est. £813 (£723–£914)
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: £723–£914/mo · n=28
Financing
DepositYour cash in — the rest is the mortgage25% · £26,250
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 (£8,089–£15,099 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £78,750 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 sub-£200K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£139
after mortgage, operating costs & tax
Rent in£813/mo gross
£782/mo collected · £31/mo lost to voids
Where it goes
£427Mortgage£494Costs
Outgoings exceed rent — you top up £139/mo
Mortgage£427
Costs£494
Management£81
Maintenance£67
Insurance£20
CapEx reserve£41
Voids + council tax£6
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£139
Returns
Return before costs on price9.29%
Cash return on cash-3.56%
Gross margin£288
Cash needed£46,860
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.83
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 | £9,756 | £5,928 | £5,119 | £0 | £0 | -£1,291 | -£1,291 |
| Year 2 | £10,049 | £6,106 | £5,119 | £0 | £0 | -£1,176 | -£2,466 |
| Year 3 | £10,350 | £6,289 | £5,119 | £0 | £0 | -£1,058 | -£3,524 |
| Year 4 | £10,661 | £6,478 | £5,119 | £0 | £0 | -£936 | -£4,460 |
| Year 5 | £10,980 | £6,672 | £5,119 | £0 | £0 | -£810 | -£5,270 |
Disposal gain (gross)-£10,005
CGT£0
Net Disposal proceeds£113,030
What we verified
What we verified
51055 ok · 1 caution · 0 fail · 5 unknown
Legal & planning
Leasehold113 yr
Leaseholdmaterial factsListing extract
Lease remaining
Mortgageable ≥80yr
113 yr
Extracted from listing description · verify with solicitor
Tenure & planning113 yr
Legal & planning
2 checks- TenureUnknown
- 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
OK
Floor
EWS1 typically required above 18m
Floor 0
Lender impact
Ground floor — building almost certainly ≤ 11 m, EWS1 likely not required (RICS Mar 2021 guidance).
Mortgageable
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 cohortNE3 3EA · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
Newcastle University · 3.9 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 · 656 sqft
£19k–£38k
£ per sqft
building cost only
£29–£57
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£4,592–£8,528
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£7,216–£13,776
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history87d on marketno cuts yet
Strategy matrix
Short-stay let / Airbnb wins — -£65/mo · £37/mo ahead of Council lease
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 9.29% | -£139 | £46,860 | -11.2% | Low | Feasible |
| Housing-benefit rent | 6.27% | -£391 | £46,860 | -44.0% | Med | Feasible |
| Council lease | 9.29% | -£102 | £46,860 | -10.4% | Low | Feasible |
| Refurb & refinance | 9.29% | -£139 | £56,424 | -9.3% | Med | Feasible |
| ⭐ Short-stay let / Airbnb | 14.48% | -£65 | £46,860 | -5.2% | High | Feasible |
| Buy, improve & sell | 0.00% | -£366 | £127,349 | -1% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
- Superhosts earn -5.0% premium here
Housing-benefit (LHA) scheme detailBRMA Tyneside · cap £549/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Tyneside
- LHA monthly cap:
- £549
- Scheme type:
- none
- Premium:
- +1000% premium over LHA cap
- Typical lease:
- 0 years lease
- 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 let22% occupancy
£194/night ADR
Based on 3 short-let comps nearby
Rent by the room conversion upside
+£450/mo cash flow vs Rent it out if converted to Rent by the room
27.43% Return before costs on price converted vs 9.29% as-is
As-is Rent it out
Monthly profit+£38
Return before costs on price9.29%
Cash needed£38,148
If converted to Rent by the room
Monthly profit+£488
Return before costs on price27.43%
Cash needed£54,148
Δ vs Rent it out Monthly profit+£450
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
£34,552–£63,000full refurb + room split
⚠️ Capped at 60% of £105,000 asking (£63,000). Raw model: £38,942–£71,005. Verify with a surveyor before offering.
What's in this cost
- Kitchen£7,826–£15,651
- 1 × bathroom£5,190–£9,516
- Rewire£2,328–£4,074
- Replumb£1,746–£3,492
- Windows£5,820–£10,477
- Paint + decor£4,656–£7,567
- Flooring£6,985–£12,223
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
- Not ratedNewcastle Bridges SchoolNot applicable · Academy alternative provision converter · NE3 3RU
- Not ratedNHS Choices CollegeNot applicable · Special post 16 institution · NE3 3PF
- Not ratedKenton Bar Primary SchoolPrimary · Academy converter · NE3 3YF
- Not ratedMountfield Primary SchoolPrimary · Academy converter · NE3 3AT
- Not ratedRegent Farm First SchoolPrimary · Foundation school · NE3 3PE
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£9,756
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£1,666
Exit costs
Projected sale price (5y · 2%/yr growth)£115,928
Capital gain (pre-CGT)£10,928
Sale costs (~2.5%)£2,898
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-£5,270
Rates as of Oct 2024
Acquisition costs
£46,860cash neededPurchase price£105,000
Deposit (25%)£26,250
Stamp duty+5% additional-property surcharge£5,250
Refurb£10,785
Legal + survey£2,000
Mortgage fees£2,575
Total cash neededdeposit + costs (loan covers the rest)£46,860
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Summary
A superb opportunity to purchase this good size ground floor apartment situated within this popular residential development.
The accommodation offers spacious living and briefly comprises; communal entrance via secure door entry intercom system, entrance hall with useful storage cupboards and intercom system, lounge, kitchen with a good range of wall and base units, complimenting work surfaces, built in hob and oven, white composite sink with mixer tap, space for ap…
Floor plans
Listing metazoopla · Pattinson - Gosforth
About this listing
87 days · ZooplaPrice history
5-year price trend
Monthly profit
−£139
Cash needed
£47K
Return after costs
-3.56%
IRR
-3.53%
Listed 87d ago
Kenton Lane, Kenton, Newcastle Upon Tyne NE3
flat · 2 bed · 1 bath · 656 sqft
£105,000
est £813 · 9.29% gross
Leasehold 113yrEPC C
1 / 6
53/100
Caution
Real 9.29% — fundamentals work.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
9.29% Return before costs — above-market
Price
£105K
Return before costs
9.29%
est rent £813/monot enough comparablesRange £723–£914/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: £723–£914/mo · n=28
Financing
DepositYour cash in — the rest is the mortgage25% · £26,250
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 (£8,089–£15,099 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £78,750 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 sub-£200K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£139
after mortgage, operating costs & tax
Rent in£813/mo gross
£782/mo collected · £31/mo lost to voids
Where it goes
£427Mortgage£494Costs
Outgoings exceed rent — you top up £139/mo
Mortgage£427
Costs£494
Management£81
Maintenance£67
Insurance£20
CapEx reserve£41
Voids + council tax£6
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£139
Returns
Return before costs on price9.29%
Cash return on cash-3.56%
Gross margin£288
Cash needed£46,860
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.83
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
- Superhosts earn -5.0% premium here
Housing-benefit (LHA) scheme detailBRMA Tyneside · cap £549/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Tyneside
- LHA monthly cap:
- £549
- Scheme type:
- none
- Premium:
- +1000% premium over LHA cap
- Typical lease:
- 0 years lease
- 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 | £9,756 | £5,928 | £5,119 | £0 | £0 | -£1,291 | -£1,291 |
| Year 2 | £10,049 | £6,106 | £5,119 | £0 | £0 | -£1,176 | -£2,466 |
| Year 3 | £10,350 | £6,289 | £5,119 | £0 | £0 | -£1,058 | -£3,524 |
| Year 4 | £10,661 | £6,478 | £5,119 | £0 | £0 | -£936 | -£4,460 |
| Year 5 | £10,980 | £6,672 | £5,119 | £0 | £0 | -£810 | -£5,270 |
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 remaining113 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 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,024
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£5,270
Acquisition costs
25% deposit£26,250
Stamp duty£5,250
Refurb£10,785
Legal + survey£2,000
Mortgage + broker£2,575
Cash needed£46,860
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 superb opportunity to purchase this good size ground floor apartment situated within this popular residential development.
The accommodation offers spacious living and briefly comprises; communal entrance via secure door entry intercom system, entrance hall with useful storage cupboards and intercom system, lounge, kitchen with a good range of wall and base units, complimenting work surfaces, built in hob and oven, white composite sink with mixer tap, space for ap…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice