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Year 5 disposal
60/ 100
Solid
Real 11.60% Rent by the room return before costs with manageable risks.
Why it works
- 7.74% return before costs — above-market
- 11.6% Rent by the room return before costs (net 5.88% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- Monthly profit −£30/mo — mildly negative — equity build may cover
- -0.6% 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.
- 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
−£30/mo
You top up £30/mo
Price
£150K
No local sold comps to compare
Return · IRR
-0.6%/yr
Loses money over 5 years
Cash to get in
£52K
Deposit + fees + refurb
Return before costs on price · Rent by the room 11.60%5-yr return on cash 4%Rent est. £967 (£850–£1,100)
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: £850–£1,100/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £37,500
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 (£1,013–£1,890 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £112,500 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)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£30
after mortgage, operating costs & tax
Rent in£967/mo gross
£930/mo collected · £37/mo lost to voids
Where it goes
£586Mortgage£374Costs
Outgoings exceed rent — you top up £30/mo
Mortgage£586
Costs£374
Management£97
Maintenance£100
Insurance£20
CapEx reserve£48
Voids + council tax£5
Ltd co. accounts£104
Tax—
Shortfall−£30
Returns
Return before costs on price7.74%
Cash return on cash-0.70%
Gross margin£556
Cash needed£51,800
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.53
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 | £11,604 | £4,489 | £7,031 | £0 | £16 | £68 | £68 |
| Year 2 | £11,952 | £4,624 | £7,031 | £0 | £56 | £241 | £309 |
| Year 3 | £12,311 | £4,762 | £7,031 | £0 | £98 | £419 | £728 |
| Year 4 | £12,680 | £4,905 | £7,031 | £0 | £141 | £602 | £1,330 |
| Year 5 | £13,060 | £5,053 | £7,031 | £0 | £186 | £791 | £2,121 |
Disposal gain (gross)£422
CGT£80
Net Disposal proceeds£161,392
What we verified
What we verified
40074 ok · 0 caution · 0 fail · 7 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
1 checks- TenureFreehold
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
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 · 1-bath · 990 sqft
£25k–£49k
£ per sqft
building cost only
£25–£49
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£6,930–£12,870
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£10,890–£20,790
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingStandard rules
Price & sale history50d on marketno cuts yet
Strategy matrix
Rent it out wins — -£30/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 | 7.74% | -£30 | £51,800 | 4.1% | Low | Feasible |
| Housing-benefit rent | 3.79% | -£463 | £51,800 | -48.3% | Med | Feasible |
| Council lease | 0.00% | -£810 | £51,800 | -95.4% | Low | Feasible |
| Refurb & refinance | 7.74% | -£30 | £59,840 | 3.5% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£224 | £161,590 | 9% | Med | Feasible |
| Rent by the room | 11.60% | -£768 | £90,450 | -43.8% | — | 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
+£350/mo cash flow vs Rent it out if converted to Rent by the room
19.20% Return before costs on price converted vs 7.74% as-is
£150k → 4-bed HMO @ ~£467/room: £1,927 pcm gross, ~£1,101 pcm net (7.8% net on £170k all-in incl. ~£10k works)
medium confidence
Unlocks ~£5,800/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 75 m²; convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 4 lettable rooms; sized to County Durham adopted standard (6.51/10.22 m²; Durham CC Standards for Shared Houses (Category B)); 1 room size(s) not printed on the plan — counted but unverified vs the standard; adds ~£483/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 single
Sized to County Durham'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)
3× Double @ £483/mo
≈ £1,450/mo gross room income
As-is Rent it out
Monthly profit-£4
Return before costs on price7.74%
Cash needed£49,398
If converted to Rent by the room
Monthly profit+£346
Return before costs on price19.20%
Cash needed£65,398
Δ vs Rent it out Monthly profit+£350
+1 room (4 total)
Monthly profit+£72
Return before costs on price15.47%
Cash needed£75,398
Extra rent+£483/mo
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Uncertain · 43% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- sparse local HMO decisions (3) — limited history
≈0.0% within 100 m vs 10% policy
£47,883–£90,000full refurb + room split
⚠️ Capped at 60% of £150,000 asking (£90,000). Raw model: £48,990–£92,080. Verify with a surveyor before offering.
What's in this cost
- Kitchen£8,445–£16,890
- 1 × bathroom£5,571–£10,214
- Rewire£3,871–£6,773
- Replumb£2,903–£5,806
- Windows£9,676–£17,417
- Paint + decor£6,773–£12,579
- Flooring£10,644–£20,320
Based on 98 HMO comps within 1.4 km
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 (County Durham)
≈0.0% within 100 m vs 10% policy
Schools & catchment3 schools nearby
Nearby schoolsOfsted-rated, nearest first3 of 5
- GoodWheatley Hill Community Primary SchoolPrimary · Community school · DH6 3RQ
- Not ratedSt Godrics Catholic Primary School, ThornleyPrimary · Academy converter · DH6 3NR
- Not ratedThornley AcademyPrimary · Academy converter · DH6 3DZ
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£11,604
Section 24 credit£0
Annual tax due£16
Post-tax Monthly profit annual-£379
Exit costs
Projected sale price (5y · 2%/yr growth)£165,612
Capital gain (pre-CGT)£15,612
Sale costs (~2.5%)£4,140
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£2,121
Rates as of Oct 2024
Acquisition costs
£51,800cash neededPurchase price£150,000
Deposit (25%)£37,500
Stamp duty+5% additional-property surcharge£8,000
Refurb£1,350
Legal + survey£1,700
Mortgage fees£3,250
Total cash neededdeposit + costs (loan covers the rest)£51,800
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Occupying a pleasant position within a sought-after modern development, this attractive three-bedroom semi-detached home enjoys uninterrupted views across open countryside to the rear and offers well-presented accommodation ideally suited to first-time buyers, families and professionals alike.
The property is approached via a driveway providing off-street parking and access to a detached garage. Upon entering, a welcoming hallway leads through to a spacious lounge, beautiful…
Listing metazoopla · Purplebricks
About this listing
50 days · ZooplaPrice history
No price history available.
Monthly profit
−£30
Cash needed
£52K
Return after costs
-0.70%
IRR
-0.56%
Listed 50d ago
3 bed detached house for sale
detached · 3 bed · 1 bath
£150,000
est £967 · 7.74% gross
60/100
Solid
Real 11.60% — fundamentals work.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
7.74% Return before costs — above-market
11.6% Rent by the room Return before costs — conversion play
Price
£150K
Return before costs (best)
11.60%
Rent by the room
Bedrooms
3
1 bath
Energy rating
—
Energy rating
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: £850–£1,100/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £37,500
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 (£1,013–£1,890 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £112,500 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)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£30
after mortgage, operating costs & tax
Rent in£967/mo gross
£930/mo collected · £37/mo lost to voids
Where it goes
£586Mortgage£374Costs
Outgoings exceed rent — you top up £30/mo
Mortgage£586
Costs£374
Management£97
Maintenance£100
Insurance£20
CapEx reserve£48
Voids + council tax£5
Ltd co. accounts£104
Tax—
Shortfall−£30
Returns
Return before costs on price7.74%
Cash return on cash-0.70%
Gross margin£556
Cash needed£51,800
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.53
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 | £11,604 | £4,489 | £7,031 | £0 | £16 | £68 | £68 |
| Year 2 | £11,952 | £4,624 | £7,031 | £0 | £56 | £241 | £309 |
| Year 3 | £12,311 | £4,762 | £7,031 | £0 | £98 | £419 | £728 |
| Year 4 | £12,680 | £4,905 | £7,031 | £0 | £141 | £602 | £1,330 |
| Year 5 | £13,060 | £5,053 | £7,031 | £0 | £186 | £791 | £2,121 |
Rent by the room upside
What we verified
4005
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▾
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
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£1,406
Annual rental tax£0
CGT yr 5£0 · company level
5y net total£2,121
Acquisition costs
25% deposit£37,500
Stamp duty£8,000
Refurb£1,350
Legal + survey£1,700
Mortgage + broker£3,250
Cash needed£51,800
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
Occupying a pleasant position within a sought-after modern development, this attractive three-bedroom semi-detached home enjoys uninterrupted views across open countryside to the rear and offers well-presented accommodation ideally suited to first-time buyers, families and professionals alike.
The property is approached via a driveway providing off-street parking and access to a detached garage. Upon entering, a welcoming hallway leads through to a spacious lounge, beautiful…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice