Skip to main contenthow this is calculated →
Year 5 disposal
55/ 100
Caution
Real 15.67% Rent by the room return before costs but flagged risks need pricing in.
Why it works
- 9.55% return before costs — above-market
- 15.7% Rent by the room return before costs (net 7.78% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- EPC D — must hit C by 2030 (~£3,000–£7,000)
- 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
+£93/mo
Barely breaks even each month
Price
£115K
No local sold comps to compare
Return · IRR
2.5%/yr
Modest annualised return
Cash to get in
£53K
Deposit + fees + refurb
Return before costs on price · Rent by the room 15.67%5-yr return on cash 17%Rent est. £915 (£942–£889)
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
Buy-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: £942–£889/mo · n=33
Financing
DepositYour cash in — the rest is the mortgage25% · £28,750
Standard 75% LTV for BTL
Mortgage rate5y fixed5.5%
5-year fixed (market average) — 5.50% (as of 2026-05).
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 (£10,672–£19,921 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £86,250 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
+£93
after mortgage, operating costs & tax
Rent in£915/mo gross
£880/mo collected · £35/mo lost to voids
Where it goes
£449Mortgage£316Costs
£93/mo left as profit · 11% of rent kept
Mortgage£449
Costs£316
Management£92
Maintenance£50
Insurance£20
CapEx reserve£46
Voids + council tax£5
Ltd co. accounts£104
Tax£22
Profit+£93
Returns
Return before costs on price9.55%
Cash return on cash2.09%
Gross margin£564
Cash needed£53,154
Monthly profit payback47y 11m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.88
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 | £10,980 | £3,796 | £5,391 | £0 | £341 | £1,453 | £1,453 |
| Year 2 | £11,309 | £3,909 | £5,391 | £0 | £382 | £1,627 | £3,080 |
| Year 3 | £11,649 | £4,027 | £5,391 | £0 | £424 | £1,807 | £4,888 |
| Year 4 | £11,998 | £4,147 | £5,391 | £0 | £467 | £1,993 | £6,881 |
| Year 5 | £12,358 | £4,272 | £5,391 | £0 | £512 | £2,184 | £9,064 |
Disposal gain (gross)-£12,884
CGT£0
Net Disposal proceeds£123,795
What we verified
What we verified
41064 ok · 1 caution · 0 fail · 6 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
1 checks- TenureFreehold
Building condition
Energy ratingD
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand D
MEES 2030 compliance
C required for new tenancies
FAIL
Upgrade to C
estimated cost
£3k–£7k
EPC band from listing · verify certificate before exchanging
Find EPC certificate →Cladding safety certificateNot stated on the listing
HeritageNot stated on the listing
Area
Flood riskNo location
Crime riskNo location
SchoolsNo postcode
Investor
Tenant profileUnknown
Refurb costEstimate ready
Refurb cost& works budgetQ1 2026 rates
New kitchen + bathroom + light replumb + decor.
Total estimate
3-bed · 2-bath · 979 sqft
£28k–£55k
£ per sqft
building cost only
£29–£56
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£6,853–£12,727
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£10,769–£20,559
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingStandard rules
Price & sale history87d on marketno cuts yet
Strategy matrix
Rent it out wins — +£93/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 | 9.55% | +£93 | £53,154 | 17.1% | Low | Feasible |
| Housing-benefit rent | 7.02% | -£126 | £53,154 | -5.8% | Med | Feasible |
| Council lease | 0.00% | -£623 | £53,154 | -71.6% | Low | Feasible |
| Refurb & refinance | 9.55% | +£93 | £64,596 | 14.0% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£174 | £142,371 | -2% | Med | Feasible |
| Rent by the room | 15.67% | -£565 | £82,395 | -32.7% | — | Feasible |
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
+£383/mo cash flow vs Rent it out if converted to Rent by the room
25.04% Return before costs on price converted vs 9.55% as-is
£115k → 4-bed HMO @ ~£467/room: £1,852 pcm gross, ~£1,050 pcm net (8.9% net on £141k all-in incl. ~£17k works); needs +1 bathroom
medium confidence
Unlocks ~£6,008/yr extra rent
3 → 4 lettable rooms
Potential, not guaranteed (subject to planning + regs). Estimate from the floorplan (kitchen size assumed) — verify room sizes against the floorplan before offering.
How we calculated this
floorplan shows 5 habitable rooms (3 beds + 2 reception(s)) in 110 m²; convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 4 lettable rooms (1 double, 0 single); sized to Lincoln adopted standard (6.51/10.22 m²; Mandatory Licensing of Houses in Multiple Occupation scheme, Adopted standards for licensable HMOs (Revised August 2018)); adds ~£501/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); Article 4 — planning permission needed
🔒 Room-add markup · Pro
Pro members see the floorplan with every convertible room outlined in green. Verify room sizes before offering.
3 → 4 bed HMO+1 double
+1 bathroom needed
Sized to Lincoln's adopted HMO standards
Projections use documented assumptions (local room rates, typical conversion costs, 75% LTV at 5.5%, indicative regional valuation yields) and each council’s published HMO standards. Not financial advice. Verify room sizes, licensing and planning with the council and a surveyor before purchase.
Room mix (3 lettable rooms)
1× Double @ £517/mo1× Single @ £407/mo1× En-suite @ £579/mo
≈ £1,503/mo gross room income
As-is Rent it out
Monthly profit+£73
Return before costs on price9.55%
Cash needed£40,648
If converted to Rent by the room
Monthly profit+£456
Return before costs on price25.04%
Cash needed£56,648
Δ vs Rent it out Monthly profit+£383
+1 room (4 total)
Monthly profit+£224
Return before costs on price20.90%
Cash needed£66,648
Extra rent+£501/mo
Show conversion detail
Conversion cost estimate
£44,000
Range: £38,000 – £52,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Likely approvable · 86% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- local council HMO approval rate 86% (132 decisions)
≈0.0% within 100 m vs 10% policy
£36,802–£69,000full refurb + room split
⚠️ Capped at 60% of £115,000 asking (£69,000). Raw model: £54,305–£101,815. Verify with a surveyor before offering.
What's in this cost
- Kitchen£5,855–£11,711
- 2 × bathroom£7,726–£14,164
- Rewire£2,654–£4,644
- Replumb£1,990–£3,981
- Windows£6,635–£11,942
- Paint + decor£4,644–£8,625
- Flooring£7,298–£13,933
Based on 4005 HMO comps within 832 m
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
No coordinates available — verify address with the agent.
Transport score100 / 100
Citywide Article 4 (Lincoln)
≈0.0% within 100 m vs 10% policy
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- Requires improvementSt Peter and St Paul, Catholic Voluntary AcademySecondary · Academy converter · LN6 7SX
- Not ratedThe Priory Witham AcademyAll-through · Academy sponsor led · LN6 7DT
- Not ratedUniversity of LincolnNot applicable · Higher education institutions · LN6 7TS
- Not ratedSir Francis Hill Community Primary SchoolPrimary · Community school · LN6 7UE
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£10,980
Section 24 credit£0
Annual tax due£341
Post-tax Monthly profit annual£1,031
Exit costs
Projected sale price (5y · 2%/yr growth)£126,969
Capital gain (pre-CGT)£11,969
Sale costs (~2.5%)£3,174
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£9,064
Rates as of Oct 2024
Acquisition costs
£53,154cash neededPurchase price£115,000
Deposit (25%)£28,750
Stamp duty+5% additional-property surcharge£5,750
Refurb£14,229
Legal + survey£1,700
Mortgage fees£2,725
Total cash neededdeposit + costs (loan covers the rest)£53,154
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
This spacious three-bedroom property presents an excellent opportunity for investors seeking a strong value purchase in a highly desirable location. Situated in a private setting close to the centre of Lincoln, the property benefits from being within easy walking distance of local shops, amenities, and transport links.
Inside, the home offers a well-proportioned layout with generously sized rooms throughout. The standout feature is the open-plan lounge and reception area, cr…
Listing metazoopla · Bairstow Eves - Lincoln Sales
About this listing
87 days · ZooplaPrice history
No price history available.
Monthly profit
+£93
Cash needed
£53K
Return after costs
2.09%
IRR
2.50%
Listed 87d ago
3 bed terraced house for sale
terraced · 3 bed · 2 bath · 979 sqft
£115,000
est £915 · 9.55% gross
EPC D
55/100
Caution
Real 15.67% — fundamentals work.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
9.55% Return before costs — above-market
15.7% Rent by the room Return before costs — conversion play
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Price
£115K
Return before costs (best)
15.67%
Rent by the room
Bedrooms
3
2 bath
Energy rating
D
Energy rating
Deal flags1 issue
EPC D — upgrade by 2030
Must reach EPC C by 2030 to let on a new tenancy
Run the numbers
What-if calculator
Buy-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: £942–£889/mo · n=33
Financing
DepositYour cash in — the rest is the mortgage25% · £28,750
Standard 75% LTV for BTL
Mortgage rate5y fixed5.5%
5-year fixed (market average) — 5.50% (as of 2026-05).
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 (£10,672–£19,921 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £86,250 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
+£93
after mortgage, operating costs & tax
Rent in£915/mo gross
£880/mo collected · £35/mo lost to voids
Where it goes
£449Mortgage£316Costs
£93/mo left as profit · 11% of rent kept
Mortgage£449
Costs£316
Management£92
Maintenance£50
Insurance£20
CapEx reserve£46
Voids + council tax£5
Ltd co. accounts£104
Tax£22
Profit+£93
Returns
Return before costs on price9.55%
Cash return on cash2.09%
Gross margin£564
Cash needed£53,154
Monthly profit payback47y 11m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.88
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 | £10,980 | £3,796 | £5,391 | £0 | £341 | £1,453 | £1,453 |
| Year 2 | £11,309 | £3,909 | £5,391 | £0 | £382 | £1,627 | £3,080 |
| Year 3 | £11,649 | £4,027 | £5,391 | £0 | £424 | £1,807 | £4,888 |
| Year 4 | £11,998 | £4,147 | £5,391 | £0 | £467 | £1,993 | £6,881 |
| Year 5 | £12,358 | £4,272 | £5,391 | £0 | £512 | £2,184 | £9,064 |
Rent by the room upside
What we verified
4104
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
TenureTenure typeFreehold
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPC~£3,000–£7,000 to upgrade to CD
EWS1External wall safety (cladding)Not stated on the listing
Refurb costBased on beds + baths + sqftEstimate available
Area▾
Crimepolice.uk · monthlyNo location
SchoolsGIAS · OfstedNo postcode
FloodEA Flood Map · England onlyNo location
Investor profile▾
Tenant profileBeds + postcode heuristicUnknown
Rent by the room feasibilityMin 3 beds for C4 routeFeasible
Comparables
sold within 0.5 miLoading nearby sold…
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,078
Annual rental tax£261
CGT yr 5£0 · company level
5y net total£9,064
Acquisition costs
25% deposit£28,750
Stamp duty£5,750
Refurb£14,229
Legal + survey£1,700
Mortgage + broker£2,725
Cash needed£53,154
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
This spacious three-bedroom property presents an excellent opportunity for investors seeking a strong value purchase in a highly desirable location. Situated in a private setting close to the centre of Lincoln, the property benefits from being within easy walking distance of local shops, amenities, and transport links.
Inside, the home offers a well-proportioned layout with generously sized rooms throughout. The standout feature is the open-plan lounge and reception area, cr…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice