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Year 5 disposal
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43/ 100
Caution
Real 8.25% return before costs but flagged risks need pricing in.
Why it works
- 8.25% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
- Long lease (108 yrs) — no short-lease drag
- EPC B — MEES compliant
Why to be cautious
- Monthly profit −£154/mo — mildly negative — equity build may cover
- -2.9% 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
−£154/mo
You top up £154/mo
Price
£140K
No local sold comps to compare
Return · IRR
-2.9%/yr
Loses money over 5 years
Cash to get in
£59K
Deposit + fees + refurb
Return before costs on price 8.25%5-yr return on cash -9%Rent est. £962 (£870–£1,064)
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: £870–£1,064/mo · n=72
Financing
DepositYour cash in — the rest is the mortgage25% · £35,000
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 (£8,728–£16,292 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £105,000 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
-£154
after mortgage, operating costs & tax
Rent in£962/mo gross
£925/mo collected · £37/mo lost to voids
Where it goes
£569Mortgage£510Costs
Outgoings exceed rent — you top up £154/mo
Mortgage£569
Costs£510
Management£96
Maintenance£67
Insurance£20
CapEx reserve£48
Voids + council tax£7
Service charge + ground rent£168
Ltd co. accounts£104
Tax—
Shortfall−£154
Returns
Return before costs on price8.25%
Cash return on cash-3.13%
Gross margin£415
Cash needed£59,037
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.63
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 | £11,544 | £6,124 | £6,825 | £0 | £0 | -£1,405 | -£1,405 |
| Year 2 | £11,890 | £6,308 | £6,825 | £0 | £0 | -£1,243 | -£2,648 |
| Year 3 | £12,247 | £6,497 | £6,825 | £0 | £0 | -£1,075 | -£3,723 |
| Year 4 | £12,614 | £6,692 | £6,825 | £0 | £0 | -£903 | -£4,625 |
| Year 5 | £12,993 | £6,893 | £6,825 | £0 | £0 | -£725 | -£5,350 |
Disposal gain (gross)-£10,230
CGT£0
Net Disposal proceeds£150,707
What we verified
What we verified
51055 ok · 1 caution · 0 fail · 5 unknown
Legal & planning
Leasehold108 yr
Tenure & planning108 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 cohortNE7 7FX · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
Northumbria · 3.3 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 · 721 sqft
£23k–£46k
£ per sqft
building cost only
£33–£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£5,047–£9,373
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£7,931–£15,141
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
Council lease wins — -£110/mo · £44/mo ahead of Rent it out
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 8.25% | -£154 | £59,037 | -9.1% | Low | Feasible |
| Housing-benefit rent | 4.71% | -£528 | £59,037 | -48.9% | Med | Feasible |
| ⭐ Council lease | 8.25% | -£110 | £59,037 | -8.3% | Low | Feasible |
| Refurb & refinance | 8.25% | -£154 | £70,692 | -7.6% | Med | Feasible |
| Short-stay let / Airbnb | 5.64% | -£576 | £59,037 | -58.3% | High | Feasible |
| Buy, improve & sell | 0.00% | -£359 | £165,592 | 1% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Short-let (SA) context1623 active short-lets nearby
Short-let market context
- 1,623 active short-let listings in this postcode
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 let17% occupancy
£126/night ADR
Based on 20 short-let comps nearby
Rent by the room conversion upside
+£352/mo cash flow vs Rent it out if converted to Rent by the room
20.57% Return before costs on price converted vs 8.25% as-is
As-is Rent it out
Monthly profit+£25
Return before costs on price8.25%
Cash needed£46,898
If converted to Rent by the room
Monthly profit+£377
Return before costs on price20.57%
Cash needed£62,898
Δ vs Rent it out Monthly profit+£352
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
£46,124–£84,000full refurb + room split
⚠️ Capped at 60% of £140,000 asking (£84,000). Raw model: £47,197–£85,955. Verify with a surveyor before offering.
What's in this cost
- Kitchen£8,619–£17,239
- 2 × bathroom£11,434–£20,962
- Rewire£2,818–£4,932
- Replumb£2,114–£4,228
- Windows£7,046–£12,683
- Paint + decor£5,637–£9,160
- Flooring£8,455–£14,797
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
- OutstandingSt Mary's Catholic SchoolSecondary · Academy converter · NE7 7PE
- GoodJesmond Park AcademySecondary · Academy sponsor led · NE7 7DP
- Not ratedBenton House SchoolNot applicable · Other independent special school · NE7 7XE
- Not ratedBenton Park Primary SchoolPrimary · Foundation school · NE7 7SS
- Not ratedCragside Primary SchoolPrimary · Foundation school · NE7 7EL
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£11,544
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£1,849
Exit costs
Projected sale price (5y · 2%/yr growth)£154,571
Capital gain (pre-CGT)£14,571
Sale costs (~2.5%)£3,864
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-£5,350
Rates as of Oct 2024
Acquisition costs
£59,037cash neededPurchase price£140,000
Deposit (25%)£35,000
Stamp duty+5% additional-property surcharge£7,300
Refurb£11,637
Legal + survey£2,000
Mortgage fees£3,100
Total cash neededdeposit + costs (loan covers the rest)£59,037
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Hive Estates presents to the market this modern first floor two bedroom apartment for sale in the popular Manor Park development in High Heaton. Externally, the balcony offers outside space for buyers to relax, with decked flooring and a glass panelling.
Set in the west building Charlton Court this spacious apartment has a large open plan kitchen, living and dining space with French doors to the secluded balcony allowing natural light to flood the space. The trendy decor bri…
Floor plans
Listing metazoopla · Hive Estates
About this listing
87 days · ZooplaPrice history
5-year price trend
Monthly profit
−£154
Cash needed
£59K
Return after costs
-3.13%
IRR
-2.93%
Listed 87d ago
Charlton Court, High Heaton, Newcastle Upon Tyne NE7
flat · 2 bed · 2 bath · 721 sqft
£140,000
est £962 · 8.25% gross
Leasehold 108yrEPC B
1 / 21
43/100
Caution
8.25% — verify the rent + comps locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
8.25% Return before costs — above-market
Price
£140K
Return before costs
8.25%
est rent £962/monot enough comparablesRange £870–£1,064/mo (Q1–Q3)
Bedrooms
2
2 bath
Energy rating
B
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: £870–£1,064/mo · n=72
Financing
DepositYour cash in — the rest is the mortgage25% · £35,000
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 (£8,728–£16,292 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £105,000 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
-£154
after mortgage, operating costs & tax
Rent in£962/mo gross
£925/mo collected · £37/mo lost to voids
Where it goes
£569Mortgage£510Costs
Outgoings exceed rent — you top up £154/mo
Mortgage£569
Costs£510
Management£96
Maintenance£67
Insurance£20
CapEx reserve£48
Voids + council tax£7
Service charge + ground rent£168
Ltd co. accounts£104
Tax—
Shortfall−£154
Returns
Return before costs on price8.25%
Cash return on cash-3.13%
Gross margin£415
Cash needed£59,037
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.63
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Short-let (SA) context1623 active short-lets nearby
Short-let market context
- 1,623 active short-let listings in this postcode
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 | £11,544 | £6,124 | £6,825 | £0 | £0 | -£1,405 | -£1,405 |
| Year 2 | £11,890 | £6,308 | £6,825 | £0 | £0 | -£1,243 | -£2,648 |
| Year 3 | £12,247 | £6,497 | £6,825 | £0 | £0 | -£1,075 | -£3,723 |
| Year 4 | £12,614 | £6,692 | £6,825 | £0 | £0 | -£903 | -£4,625 |
| Year 5 | £12,993 | £6,893 | £6,825 | £0 | £0 | -£725 | -£5,350 |
Rent by the room upside
What we verified
6206
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining108 yr
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPCEnergy efficiency ratingB
EWS1External wall safety (cladding)Not stated on the listing
Refurb costBased on beds + baths + sqftEstimate available
Service chargeReduces net yield£1,860/yr
Ground rentDoubling clauses kill mortgageability£150/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£1,365
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£5,350
Acquisition costs
25% deposit£35,000
Stamp duty£7,300
Refurb£11,637
Legal + survey£2,000
Mortgage + broker£3,100
Cash needed£59,037
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
Hive Estates presents to the market this modern first floor two bedroom apartment for sale in the popular Manor Park development in High Heaton. Externally, the balcony offers outside space for buyers to relax, with decked flooring and a glass panelling.
Set in the west building Charlton Court this spacious apartment has a large open plan kitchen, living and dining space with French doors to the secluded balcony allowing natural light to flood the space. The trendy decor bri…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice