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Year 5 disposal
BMV -4%
⊞ View all 17
33/ 100
Weak
6.46% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- Priced below market -4% vs 12 nearby sold (last 12 mo) — instant equity
- EPC C — MEES compliant
Why to be cautious
- Monthly profit −£110/mo — mildly negative — equity build may cover
- -1.4% 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
−£110/mo
You top up £110/mo
Price vs market
Below market value
-4% vs 12 sold · interior unseen
Return · IRR
-1.4%/yr
Loses money over 5 years
Cash left in
£81K
Stays in after refinancing at value
Price £260KCash to buy £89KReturn before costs on price 6.46%5-yr return on cash 0%Rent est. £1,399 (£1,391–£1,407)
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: £1,391–£1,407/mo · n=19
Financing
DepositYour cash in — the rest is the mortgage25% · £65,000
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 (£1,013–£1,890 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £195,000 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 £200K–£400K
Maintenance (£/mo)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
-£110
after mortgage, operating costs & tax
Rent in£1,399/mo gross
£1,345/mo collected · £54/mo lost to voids
Where it goes
£1,056Mortgage£399Costs
Outgoings exceed rent — you top up £110/mo
Mortgage£1,056
Costs£399
Management£140
Maintenance£50
Insurance£28
CapEx reserve£70
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£110
Returns
Return before costs on price6.46%
Cash return on cash-1.48%
Gross margin£946
Cash needed£89,400
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.27
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 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 | £16,788 | £4,792 | £12,675 | £0 | £0 | -£679 | -£679 |
| Year 2 | £17,292 | £4,936 | £12,675 | £0 | £0 | -£319 | -£999 |
| Year 3 | £17,810 | £5,084 | £12,675 | £0 | £10 | £41 | -£957 |
| Year 4 | £18,345 | £5,237 | £12,675 | £0 | £82 | £351 | -£606 |
| Year 5 | £18,895 | £5,394 | £12,675 | £0 | £157 | £669 | £63 |
Disposal gain (gross)£384
CGT£73
Net Disposal proceeds£279,811
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 approvable71% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
- 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 40 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 cohortSO16 6SR · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
University of Southampton · 3.5 km
Reason
3-bed house in a suburban area — family-let demand dominates; check local school catchment ratings.
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
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
HMO licensing5-year licenceCouncil
Licence fee
5-year mandatory
£825–£1,500
Scheme type
Check council
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 history0d on marketno cuts yet
Strategy matrix
Council lease wins — +£73/mo · £184/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 | 6.46% | -£110 | £89,400 | 0.1% | Low | Feasible |
| Housing-benefit rent | 4.95% | -£446 | £89,400 | -21.5% | Med | Feasible |
| ⭐ Council lease | 6.46% | +£73 | £89,400 | 8.8% | Low | Feasible |
| Refurb & refinance | 6.46% | -£110 | £102,940 | 0.1% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£182 | £280,040 | 10% | Med | Feasible |
| Rent by the room | 8.65% | -£387 | £89,400 | -12.8% | — | Feasible |
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £1,072/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £1,072
- Scheme type:
- PSL
- Premium:
- +800% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- management covered by council
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
+£80/mo cash flow vs Rent it out if converted to Rent by the room
11.08% Return before costs on price converted vs 6.46% as-is
As-is Rent it out
Monthly profit-£83
Return before costs on price6.46%
Cash needed£76,898
If converted to Rent by the room
Monthly profit-£3
Return before costs on price11.08%
Cash needed£92,898
Δ vs Rent it out Monthly profit+£80
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
Likely approvable · 71% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
≈0.0% within 40 m vs 10% policy
£48,990–£92,080full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 1 × bathroom£5,700–£10,450
- Rewire£3,960–£6,930
- Replumb£2,970–£5,940
- Windows£9,900–£17,820
- Paint + decor£6,930–£12,870
- Flooring£10,890–£20,790
Comparables
sold within 0.5 miWide · CV 20.7%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Southampton City-wide HMO Article 4
≈0.0% within 40 m vs 10% policy
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- GoodHollybrook Infant SchoolPrimary · Academy converter · SO16 6RN
- Not ratedSouthampton Hospital SchoolNot applicable · Academy alternative provision converter · SO16 6HU
- Not ratedHollybrook Junior SchoolPrimary · Academy sponsor led · SO16 6RL
- Not ratedShirley Warren Primary & Nursery SchoolPrimary · Foundation school · SO16 6AY
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£16,788
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£1,325
Exit costs
Projected sale price (5y · 2%/yr growth)£287,061
Capital gain (pre-CGT)£27,061
Sale costs (~2.5%)£7,177
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£63
Rates as of Oct 2024
Acquisition costs
£89,400cash neededPurchase price£260,000
Deposit (25%)£65,000
Stamp duty+5% additional-property surcharge£16,000
Refurb£1,350
Legal + survey£2,150
Mortgage fees£4,900
Total cash neededdeposit + costs (loan covers the rest)£89,400
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Three-Bedroom Townhouse Chain Free Garage & Driveway Turnkey Ready Condition Close To Hospital
Occupying a quiet cul-de-sac position, this well-presented three-bedroom townhouse offers versatile accommodation arranged over three floors, together with a private garden/ gated driveway parking, garage, balcony. Offered in turnkey condition and with no onward chain.
From the front, the property presents as a traditional two-storey home, while the changing levels of the la…
Floor plans
Listing metazoopla · Morris Dibben - Southampton Sales
About this listing
ZooplaPrice history
5-year price trend
Monthly profit
−£110
Cash needed
£89K
Return after costs
-1.48%
IRR
-1.42%
Brook Valley, Maybush, Southampton, Hampshire SO16
terraced · 3 bed · 1 bath
£260,000
est £1,399 · 6.46% gross
Chain freeEPC C
Priced below market
1 / 17
33/100
Marginal
6.46% — verify the rent + comps locally.
Priced below market -4% vs 12 nearby sold (last 12 mo)
Chain free
Price
£260K
4% below sold comps
Return before costs
6.46%
est rent £1,399/monot enough comparablesRange £1,391–£1,407/mo (Q1–Q3)
Bedrooms
3
1 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: £1,391–£1,407/mo · n=19
Financing
DepositYour cash in — the rest is the mortgage25% · £65,000
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 (£1,013–£1,890 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £195,000 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 £200K–£400K
Maintenance (£/mo)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
-£110
after mortgage, operating costs & tax
Rent in£1,399/mo gross
£1,345/mo collected · £54/mo lost to voids
Where it goes
£1,056Mortgage£399Costs
Outgoings exceed rent — you top up £110/mo
Mortgage£1,056
Costs£399
Management£140
Maintenance£50
Insurance£28
CapEx reserve£70
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£110
Returns
Return before costs on price6.46%
Cash return on cash-1.48%
Gross margin£946
Cash needed£89,400
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.27
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £1,072/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £1,072
- Scheme type:
- PSL
- Premium:
- +800% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- management covered by council
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 | £16,788 | £4,792 | £12,675 | £0 | £0 | -£679 | -£679 |
| Year 2 | £17,292 | £4,936 | £12,675 | £0 | £0 | -£319 | -£999 |
| Year 3 | £17,810 | £5,084 | £12,675 | £0 | £10 | £41 | -£957 |
| Year 4 | £18,345 | £5,237 | £12,675 | £0 | £82 | £351 | -£606 |
| Year 5 | £18,895 | £5,394 | £12,675 | £0 | £157 | £669 | £63 |
Rent by the room upside
What we verified
6006
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▾
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 heuristicFamily / Rent by the room
Rent by the room feasibilityMin 3 beds for C4 routeFeasible
Comparables
sold within 0.5 miWide · CV 20.7%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,535
Annual rental tax£0
CGT yr 5£0 · company level
5y net total£63
Acquisition costs
25% deposit£65,000
Stamp duty£16,000
Refurb£1,350
Legal + survey£2,150
Mortgage + broker£4,900
Cash needed£89,400
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
Three-Bedroom Townhouse Chain Free Garage & Driveway Turnkey Ready Condition Close To Hospital
Occupying a quiet cul-de-sac position, this well-presented three-bedroom townhouse offers versatile accommodation arranged over three floors, together with a private garden/ gated driveway parking, garage, balcony. Offered in turnkey condition and with no onward chain.
From the front, the property presents as a traditional two-storey home, while the changing levels of the la…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice