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Year 5 disposal
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100/ 100
Strong
11.53% Rent by the room return before costs — market rent unverified, verify rent + comps locally.
Why it works
- Monthly profit +£553/mo from completion — the no.1 reason to invest
- 10.25% return before costs — above-market
- 11.5% Rent by the room return before costs (net 6.54% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- 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
+£553/mo
Pays you every month, net of costs
Price
£310K
No local sold comps to compare
Return · IRR
5.5%/yr
Modest annualised return
Cash to get in
£130K
Deposit + fees + refurb
Return before costs on price · Rent by the room 11.53%5-yr return on cash 34%Rent est. £2,647 (£1,653–£4,239)
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: £1,653–£4,239/mo · n=21
Financing
DepositYour cash in — the rest is the mortgage25% · £77,500
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 (£17,854–£33,327 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £232,500 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£553
after mortgage, operating costs & tax
Rent in£2,647/mo gross
£2,545/mo collected · £102/mo lost to voids
Where it goes
£1,259Mortgage£604Costs£553Your profit
£553/mo left as profit · 22% of rent kept
Mortgage£1,259
Costs£604
Management£265
Maintenance£67
Insurance£28
CapEx reserve£132
Voids + council tax£7
Ltd co. accounts£104
Tax£130
Profit+£553
Returns
Return before costs on price10.25%
Cash return on cash5.10%
Gross margin£1,942
Cash needed£130,105
Monthly profit payback19y 8m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.02
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 | £31,764 | £7,243 | £15,113 | £0 | £1,788 | £7,621 | £7,621 |
| Year 2 | £32,717 | £7,460 | £15,113 | £0 | £1,927 | £8,218 | £15,838 |
| Year 3 | £33,698 | £7,684 | £15,113 | £0 | £2,071 | £8,831 | £24,670 |
| Year 4 | £34,709 | £7,914 | £15,113 | £0 | £2,220 | £9,463 | £34,132 |
| Year 5 | £35,751 | £8,152 | £15,113 | £0 | £2,372 | £10,115 | £44,247 |
Disposal gain (gross)-£23,247
CGT£0
Net Disposal proceeds£333,708
What we verified
What we verified
60066 ok · 0 caution · 0 fail · 6 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
1 checks- TenureFreehold
Council planning restrictionUnknown
Council planning restrictionRent by the room conversion gatePlanning data
Conversion approvability
Per-property planning assessment
Likely approvable68% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- sparse local HMO decisions (6) — limited history
- this council refuses HMOs that would sandwich a family home between two HMOs — check both adjoining properties
- NO HMO concentration data for this council: neither a licensed register nor granted change-of-use decisions nearby. This is ABSENCE OF DATA, not absence of HMOs — verify with the council before relying on it
Rent by the room concentration nearby
≈0.0% within 100 m vs 10% policy
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
Rates as of May 2026
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
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 profileFamily let
Tenant profilelikely cohortGL51 9LL · 5 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
UWE Bristol · 55.7 km
Reason
5-bed house in a suburban area — family-let demand dominates; larger property may also work as a sharer HMO.
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
5-bed · 2-bath · 1350 sqft
£35k–£68k
£ per sqft
building cost only
£26–£50
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£9,450–£17,550
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£14,850–£28,350
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingMandatory
HMO licensing5-year licenceCouncil
Licence fee
5-year mandatory
£825–£1,500
Scheme type
Mandatory
The council's HMO page lists the current mandatory fee plus any additional / selective scheme that catches smaller HMOs.
Mandatory licensing applies to 5+ sharer HMOs (Housing Act 2004)
Find council HMO page →Price & sale history43d on marketno cuts yet
Strategy matrix
Rent it out wins — +£553/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 | 10.25% | +£553 | £130,105 | 34.0% | Low | Feasible |
| Housing-benefit rent | 5.67% | -£369 | £130,105 | -9.0% | Med | Feasible |
| Council lease | 0.00% | -£1,459 | £130,105 | -67.8% | Low | Feasible |
| Refurb & refinance | 10.25% | +£553 | £155,127 | 28.5% | Med | Feasible |
| Short-stay let / Airbnb | 8.41% | -£250 | £130,105 | -8.4% | High | Feasible |
| Buy, improve & sell | 0.00% | -£199 | £366,477 | 2% | Med | Feasible |
| Rent by the room | 12.09% | -£1,182 | £172,105 | -32.1% | — | Feasible |
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Cheltenham · cap £1,466/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Cheltenham
- LHA monthly cap:
- £1,466
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 let60% occupancy
£118/night ADR
Based on 6 short-let comps nearby
Rent by the room conversion upside
-£793/mo cash flow vs Rent it out if converted to Rent by the room
9.29% Return before costs on price converted vs 10.25% as-is
Room mix (5 lettable rooms)
3× Double @ £635/mo1× Single @ £494/mo1× En-suite @ £723/mo
≈ £3,123/mo gross room income
As-is Rent it out
Monthly profit+£595
Return before costs on price10.25%
Cash needed£89,398
If converted to Rent by the room
Monthly profit-£198
Return before costs on price9.29%
Cash needed£105,398
Δ vs Rent it out Monthly profit-£793
Show conversion detail
Conversion cost estimate
£3,600
Range: £2,400 – £6,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Likely approvable · 68% 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 (6) — limited history
≈0.0% within 100 m vs 10% policy
£80,940–£153,730full refurb + room split
What's in this cost
- Kitchen£9,540–£19,080
- 2 × bathroom£12,900–£23,650
- Rewire£6,000–£12,000
- Replumb£4,500–£10,500
- Windows£15,000–£28,500
- Paint + decor£13,500–£24,000
- Flooring£19,500–£36,000
Based on 404 HMO comps within 548 m
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
St Pauls Ward
≈0.0% within 100 m vs 10% policy
Schools & catchment2 schools nearby
Nearby schoolsOfsted-rated, nearest first2 of 5
- Not ratedGardners Lane Primary SchoolPrimary · Foundation school · GL51 9JW
- Not ratedSwindon Village Primary SchoolPrimary · Foundation school · GL51 9QP
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£31,764
Section 24 credit£0
Annual tax due£1,788
Post-tax Monthly profit annual£6,399
Exit costs
Projected sale price (5y · 2%/yr growth)£342,265
Capital gain (pre-CGT)£32,265
Sale costs (~2.5%)£8,557
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£44,247
Rates as of Oct 2024
Acquisition costs
£130,105cash neededPurchase price£310,000
Deposit (25%)£77,500
Stamp duty+5% additional-property surcharge£21,000
Refurb£23,805
Legal + survey£2,150
Mortgage fees£5,650
Total cash neededdeposit + costs (loan covers the rest)£130,105
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
A highly versatile four/five-bedroom home offering generous and adaptable accommodation, a good-sized plot with off road parking and a convenient position within easy reach of Cheltenham town centre. With its flexible layout, two bath/shower rooms and excellent bedroom provision, the property could work equally well as a spacious family home or an attractive investment opportunity. The ground floor offers an unusual degree of flexibility. From the entrance hall are two rooms…
Floor plans
Listing metazoopla · de Mel Property
About this listing
43 days · ZooplaPrice history
5-year price trend
Monthly profit
+£553
Cash needed
£130K
Return after costs
5.10%
IRR
5.48%
Listed 43d ago
Marsh Gardens, Cheltenham GL51
semi-detached · 5 bed · 2 bath
£310,000
est £2,647 · 10.25% gross
EPC C
1 / 13
100/100
Strong
11.53% Rent by the room strategy — market rent unverified, verify locally.
Monthly profit +£553/mo at 25% deposit @ 5.5%
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
10.25% Return before costs — above-market
11.5% Rent by the room Return before costs — conversion play
Price
£310K
Return before costs (best)
11.53%
Rent by the room
Bedrooms
5
2 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: £1,653–£4,239/mo · n=21
Financing
DepositYour cash in — the rest is the mortgage25% · £77,500
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 (£17,854–£33,327 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £232,500 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£553
after mortgage, operating costs & tax
Rent in£2,647/mo gross
£2,545/mo collected · £102/mo lost to voids
Where it goes
£1,259Mortgage£604Costs£553Your profit
£553/mo left as profit · 22% of rent kept
Mortgage£1,259
Costs£604
Management£265
Maintenance£67
Insurance£28
CapEx reserve£132
Voids + council tax£7
Ltd co. accounts£104
Tax£130
Profit+£553
Returns
Return before costs on price10.25%
Cash return on cash5.10%
Gross margin£1,942
Cash needed£130,105
Monthly profit payback19y 8m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.02
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
Housing-benefit (LHA) scheme detailBRMA Cheltenham · cap £1,466/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Cheltenham
- LHA monthly cap:
- £1,466
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 | £31,764 | £7,243 | £15,113 | £0 | £1,788 | £7,621 | £7,621 |
| Year 2 | £32,717 | £7,460 | £15,113 | £0 | £1,927 | £8,218 | £15,838 |
| Year 3 | £33,698 | £7,684 | £15,113 | £0 | £2,071 | £8,831 | £24,670 |
| Year 4 | £34,709 | £7,914 | £15,113 | £0 | £2,220 | £9,463 | £34,132 |
| Year 5 | £35,751 | £8,152 | £15,113 | £0 | £2,372 | £10,115 | £44,247 |
Rent by the room upside
What we verified
6006
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedMandatory
TenureTenure typeFreehold
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 heuristicRent by the room / sharers
Rent by the room feasibilityMin 3 beds for C4 routeFeasible
Comparables
sold within 0.5 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£3,023
Annual rental tax£1,556
CGT yr 5£0 · company level
5y net total£44,247
Acquisition costs
25% deposit£77,500
Stamp duty£21,000
Refurb£23,805
Legal + survey£2,150
Mortgage + broker£5,650
Cash needed£130,105
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
A highly versatile four/five-bedroom home offering generous and adaptable accommodation, a good-sized plot with off road parking and a convenient position within easy reach of Cheltenham town centre. With its flexible layout, two bath/shower rooms and excellent bedroom provision, the property could work equally well as a spacious family home or an attractive investment opportunity. The ground floor offers an unusual degree of flexibility. From the entrance hall are two rooms…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice