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Year 5 disposal
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7/ 100
Weak
5.74% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- Monthly profit −£249/mo — significantly negative — real recurring drain
- -2.8% 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
−£249/mo
You top up £249/mo
Price vs market
Above comparable sales
+15% vs 12 sold
Return · IRR
-2.8%/yr
Loses money over 5 years
Cash to get in
£110K
Deposit + fees + refurb
Price £290KReturn before costs on price 5.74%5-yr return on cash -7%Rent est. £1,388 (£1,357–£1,420)
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: £1,357–£1,420/mo · n=5
Financing
DepositYour cash in — the rest is the mortgage25% · £72,500
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 (£8,073–£15,070 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £217,500 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
-£249
after mortgage, operating costs & tax
Rent in£1,388/mo gross
£1,335/mo collected · £53/mo lost to voids
Where it goes
£1,178Mortgage£406Costs
Outgoings exceed rent — you top up £249/mo
Mortgage£1,178
Costs£406
Management£139
Maintenance£50
Insurance£28
CapEx reserve£69
Voids + council tax£7
Ltd co. accounts£104
Selective licensing£9
Tax—
Shortfall−£249
Returns
Return before costs on price5.74%
Cash return on cash-2.73%
Gross margin£929
Cash needed£109,764
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.13
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 | £16,656 | £4,871 | £14,138 | £0 | £0 | -£2,353 | -£2,353 |
| Year 2 | £17,156 | £5,018 | £14,138 | £0 | £0 | -£1,999 | -£4,352 |
| Year 3 | £17,670 | £5,168 | £14,138 | £0 | £0 | -£1,635 | -£5,987 |
| Year 4 | £18,200 | £5,323 | £14,138 | £0 | £0 | -£1,260 | -£7,248 |
| Year 5 | £18,746 | £5,483 | £14,138 | £0 | £0 | -£874 | -£8,121 |
Disposal gain (gross)-£9,735
CGT£0
Net Disposal proceeds£312,179
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 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
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 cohortLU4 8FA · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University College London · 46.3 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 · 1-bath · 810 sqft
£22k–£43k
£ per sqft
building cost only
£27–£53
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£5,670–£10,530
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£8,910–£17,010
Guide rates · UK May 2026 · sqft auto-estimated from beds
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history0d on marketno cuts yet
Strategy matrix
Council lease wins — -£51/mo · £190/mo ahead of Refurb & refinance
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| Rent it out | 5.74% | -£249 | £109,764 | -7.4% | Low | Feasible |
| Housing-benefit rent | 3.61% | -£722 | £109,764 | -34.0% | Med | Feasible |
| ⭐ Council lease | 5.74% | -£51 | £109,764 | 0.7% | Low | Feasible |
| Refurb & refinance | 5.74% | -£240 | £128,570 | -5.9% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£182 | £326,220 | 6% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Housing-benefit (LHA) scheme detailBRMA Luton · cap £873/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Luton
- LHA monthly cap:
- £873
- Scheme type:
- leasing
- Premium:
- +1000% 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
+£89/mo cash flow vs Rent it out if converted to Rent by the room
9.93% Return before costs on price converted vs 5.74% as-is
As-is Rent it out
Monthly profit-£209
Return before costs on price5.74%
Cash needed£84,398
If converted to Rent by the room
Monthly profit-£120
Return before costs on price9.93%
Cash needed£100,398
Δ vs Rent it out Monthly profit+£89
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
£44,000
Range: £38,000 – £52,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£42,690–£80,380full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 1 × bathroom£5,700–£10,450
- Rewire£3,240–£5,670
- Replumb£2,430–£4,860
- Windows£8,100–£14,580
- Paint + decor£5,670–£10,530
- Flooring£8,910–£17,010
Comparables
sold within 0.5 miWide · CV 19.0%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- GoodBeech Hill Community Primary SchoolPrimary · Community school · LU4 8BW
- GoodMaidenhall Primary SchoolPrimary · Community school · LU4 8LD
- Not ratedMehria Primary SchoolNot applicable · Other independent school · LU4 8JD
- Not ratedDownside Primary SchoolPrimary · Community school · LU4 8EZ
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£16,656
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£2,994
Exit costs
Projected sale price (5y · 2%/yr growth)£320,183
Capital gain (pre-CGT)£30,183
Sale costs (~2.5%)£8,005
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-£8,121
Rates as of Oct 2024
Acquisition costs
£109,764cash neededPurchase price£290,000
Deposit (25%)£72,500
Stamp duty+5% additional-property surcharge£19,000
Refurb£10,764
Legal + survey£2,150
Mortgage fees£5,350
Total cash neededdeposit + costs (loan covers the rest)£109,764
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Digby Close, Luton
Nestled in the highly sought-after Leagrave area of Luton, this charming two-bedroom house presents an exceptional opportunity for both first-time buyers and astute buy-to-let investors.
Upon entering, you are greeted by a welcoming atmosphere that flows seamlessly through the well-presented interiors. The ground floor features a spacious reception room, providing ample space for relaxation and entertaining. This area is thoughtfully designed to maximise…
Floor plans
Listing metazoopla · Penrose Estate Agents
About this listing
ZooplaPrice history
5-year price trend
Monthly profit
−£249
Cash needed
£110K
Return after costs
-2.73%
IRR
-2.77%
Digby Close, Luton, Bedfordshire LU4
terraced · 2 bed · 1 bath
£290,000
est £1,388 · 5.74% gross
1 / 10
7/100
Marginal
5.74% — verify the rent + comps locally.
5.74% Return before costs — around the area average for this property type.
Monthly profit −£249/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£290K
15% above sold comps
Return before costs
5.74%
est rent £1,388/monot enough comparablesRange £1,357–£1,420/mo (Q1–Q3)
Bedrooms
2
1 bath
Energy rating
—
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: £1,357–£1,420/mo · n=5
Financing
DepositYour cash in — the rest is the mortgage25% · £72,500
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 (£8,073–£15,070 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £217,500 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
-£249
after mortgage, operating costs & tax
Rent in£1,388/mo gross
£1,335/mo collected · £53/mo lost to voids
Where it goes
£1,178Mortgage£406Costs
Outgoings exceed rent — you top up £249/mo
Mortgage£1,178
Costs£406
Management£139
Maintenance£50
Insurance£28
CapEx reserve£69
Voids + council tax£7
Ltd co. accounts£104
Selective licensing£9
Tax—
Shortfall−£249
Returns
Return before costs on price5.74%
Cash return on cash-2.73%
Gross margin£929
Cash needed£109,764
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.13
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Housing-benefit (LHA) scheme detailBRMA Luton · cap £873/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Luton
- LHA monthly cap:
- £873
- Scheme type:
- leasing
- Premium:
- +1000% 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 | £16,656 | £4,871 | £14,138 | £0 | £0 | -£2,353 | -£2,353 |
| Year 2 | £17,156 | £5,018 | £14,138 | £0 | £0 | -£1,999 | -£4,352 |
| Year 3 | £17,670 | £5,168 | £14,138 | £0 | £0 | -£1,635 | -£5,987 |
| Year 4 | £18,200 | £5,323 | £14,138 | £0 | £0 | -£1,260 | -£7,248 |
| Year 5 | £18,746 | £5,483 | £14,138 | £0 | £0 | -£874 | -£8,121 |
Rent by the room upside
What we verified
3207
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
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 · 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 miWide · CV 19.0%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,828
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£8,121
Acquisition costs
25% deposit£72,500
Stamp duty£19,000
Refurb£10,764
Legal + survey£2,150
Mortgage + broker£5,350
Cash needed£109,764
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
Digby Close, Luton
Nestled in the highly sought-after Leagrave area of Luton, this charming two-bedroom house presents an exceptional opportunity for both first-time buyers and astute buy-to-let investors.
Upon entering, you are greeted by a welcoming atmosphere that flows seamlessly through the well-presented interiors. The ground floor features a spacious reception room, providing ample space for relaxation and entertaining. This area is thoughtfully designed to maximise…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice