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Year 5 disposal
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Weak
9.81% return before costs — verify the rent + comps locally.
Why it works
- 9.81% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- EPC B — MEES compliant
Why to be cautious
- Lease 79 yrs — mortgageability risk
- Cash only — often signals cladding / short lease / structural
- Service charge unknown — could swing £100-300/mo
- Monthly profit −£115/mo — mildly negative — equity build may cover
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£115/mo
You top up £115/mo
Price
£100K
No local sold comps to compare
Return · IRR
-0.9%/yr
Loses money over 5 years
Cash to get in
£89K
Deposit + fees + refurb
Return before costs on price 9.81%5-yr return on cash -4%Rent est. £817 (£711–£939)
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: £711–£939/mo · n=33
Financing
DepositYour cash in — the rest is the mortgage25% · £24,988
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 (£41,139–£76,793 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £74,962.5 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
-£115
after mortgage, operating costs & tax
Rent in£817/mo gross
£786/mo collected · £31/mo lost to voids
Where it goes
£406Mortgage£495Costs
Outgoings exceed rent — you top up £115/mo
Mortgage£406
Costs£495
Management£82
Maintenance£67
Insurance£20
CapEx reserve£41
Voids + council tax£6
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£115
Returns
Return before costs on price9.81%
Cash return on cash-1.55%
Gross margin£291
Cash needed£89,337
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.93
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 | £9,804 | £5,935 | £4,873 | £0 | £0 | -£1,004 | -£1,004 |
| Year 2 | £10,098 | £6,113 | £4,873 | £0 | £0 | -£888 | -£1,891 |
| Year 3 | £10,401 | £6,297 | £4,873 | £0 | £0 | -£768 | -£2,659 |
| Year 4 | £10,713 | £6,485 | £4,873 | £0 | £0 | -£645 | -£3,304 |
| Year 5 | £11,034 | £6,680 | £4,873 | £0 | £0 | -£518 | -£3,822 |
Disposal gain (gross)-£54,206
CGT£0
Net Disposal proceeds£107,594
What we verified
What we verified
22252 ok · 2 caution · 2 fail · 5 unknown
Legal & planning
Leasehold79 yr
Tenure & planning79 yr
Legal & planning
2 checks- TenureLeasehold
- Lease lengthUnknown
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
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 cohortNE3 3EA · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
Newcastle University · 4.1 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 · 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 history87d on marketno cuts yet
Strategy matrix
Short-stay let / Airbnb wins — -£43/mo · £35/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 | 9.81% | -£115 | £89,337 | -4.3% | Low | Feasible |
| Housing-benefit rent | 6.59% | -£371 | £89,337 | -21.7% | Med | Feasible |
| Council lease | 9.81% | -£78 | £89,337 | -3.9% | Low | Feasible |
| Refurb & refinance | 9.81% | -£115 | £116,275 | -3.3% | Med | Feasible |
| ⭐ Short-stay let / Airbnb | 15.21% | -£43 | £89,337 | -1.2% | High | Feasible |
| Buy, improve & sell | 0.00% | -£366 | £183,741 | -35% | 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
+£448/mo cash flow vs Rent it out if converted to Rent by the room
28.81% Return before costs on price converted vs 9.81% as-is
As-is Rent it out
Monthly profit+£56
Return before costs on price9.81%
Cash needed£36,886
If converted to Rent by the room
Monthly profit+£504
Return before costs on price28.81%
Cash needed£52,886
Δ vs Rent it out Monthly profit+£448
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
£32,768–£59,970full refurb + room split
⚠️ Capped at 60% of £99,950 asking (£59,970). Raw model: £35,353–£64,700. Verify with a surveyor before offering.
What's in this cost
- Kitchen£8,175–£16,350
- 1 × bathroom£5,422–£9,941
- Rewire£2,073–£3,627
- Replumb£1,554–£3,109
- Windows£5,181–£9,326
- Paint + decor£4,145–£6,736
- Flooring£6,218–£10,881
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£9,804
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£1,381
Exit costs
Projected sale price (5y · 2%/yr growth)£110,353
Capital gain (pre-CGT)£10,403
Sale costs (~2.5%)£2,759
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-£3,822
Rates as of Oct 2024
Acquisition costs
£89,337cash neededPurchase price£99,950
Deposit (25%)£24,988
Stamp duty+5% additional-property surcharge£4,998
Refurb£54,852
Legal + survey£2,000
Mortgage fees£2,499
Total cash neededdeposit + costs (loan covers the rest)£89,337
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
*cash buyers only due to short lease* Located on the ever popular Kenton Lane, this charming two bedroom flat presents an excellent opportunity for first time buyers, downsizers, and investors alike.
Offering bright and airy accommodation throughout, the property comprises a spacious reception room ideal for both relaxing and entertaining, a fitted kitchen with ample storage and workspace, two well proportioned bedrooms, and a family bathroom.
The property has been well mai…
Floor plans
Listing metazoopla · Reeds Rains - Gosforth
About this listing
87 days · ZooplaPrice history
5-year price trend
Monthly profit
−£115
Cash needed
£89K
Return after costs
-1.55%
IRR
-0.91%
Listed 87d ago
Kenton Lane, Newcastle Upon Tyne, Tyne And Wear NE3
flat · 2 bed · 559 sqft
£99,950
est £817 · 9.81% gross
Leasehold 79yrEPC BConservation areaCash only
1 / 9
0/100
Marginal
9.81% — verify the rent + comps locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
9.81% Return before costs — above-market
Lease 79 yrs — mortgage risk
Price
£100K
Return before costs
9.81%
est rent £817/monot enough comparablesRange £711–£939/mo (Q1–Q3)
Bedrooms
2
— bath
Energy rating
B
Energy rating
Deal flags2 issues
Cash buyers only
Often signals cladding, structural, or short-lease issues
Lease — 79 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 (£)
Local comp range: £711–£939/mo · n=33
Financing
DepositYour cash in — the rest is the mortgage25% · £24,988
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 (£41,139–£76,793 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £74,962.5 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
-£115
after mortgage, operating costs & tax
Rent in£817/mo gross
£786/mo collected · £31/mo lost to voids
Where it goes
£406Mortgage£495Costs
Outgoings exceed rent — you top up £115/mo
Mortgage£406
Costs£495
Management£82
Maintenance£67
Insurance£20
CapEx reserve£41
Voids + council tax£6
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£115
Returns
Return before costs on price9.81%
Cash return on cash-1.55%
Gross margin£291
Cash needed£89,337
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.93
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 | £9,804 | £5,935 | £4,873 | £0 | £0 | -£1,004 | -£1,004 |
| Year 2 | £10,098 | £6,113 | £4,873 | £0 | £0 | -£888 | -£1,891 |
| Year 3 | £10,401 | £6,297 | £4,873 | £0 | £0 | -£768 | -£2,659 |
| Year 4 | £10,713 | £6,485 | £4,873 | £0 | £0 | -£645 | -£3,304 |
| Year 5 | £11,034 | £6,680 | £4,873 | £0 | £0 | -£518 | -£3,822 |
Rent by the room upside
What we verified
2415
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining79 yr
HeritageListed building / conservation areaCA
Building condition▾
EPCEnergy efficiency ratingB
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£975
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£3,822
Acquisition costs
25% deposit£24,988
Stamp duty£4,998
Refurb£54,852
Legal + survey£2,000
Mortgage + broker£2,499
Cash needed£89,337
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
*cash buyers only due to short lease* Located on the ever popular Kenton Lane, this charming two bedroom flat presents an excellent opportunity for first time buyers, downsizers, and investors alike.
Offering bright and airy accommodation throughout, the property comprises a spacious reception room ideal for both relaxing and entertaining, a fitted kitchen with ample storage and workspace, two well proportioned bedrooms, and a family bathroom.
The property has been well mai…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice