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Year 5 disposal
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Weak
4.64% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- EPC E — must hit C by 2030 (~£6,000–£12,000)
- Monthly profit −£409/mo — significantly negative — real recurring drain
- -6.7% 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
−£409/mo
You top up £409/mo
Price
£220K
No local sold comps to compare
Return · IRR
-6.7%/yr
Loses money over 5 years
Cash to get in
£75K
Deposit + fees + refurb
Return before costs on price 4.64%5-yr return on cash -27%Rent est. £850 (£775–£932)
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: £775–£932/mo · n=102
Financing
DepositYour cash in — the rest is the mortgage25% · £55,000
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 — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £165,000 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)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£409
after mortgage, operating costs & tax
Rent in£850/mo gross
£817/mo collected · £33/mo lost to voids
Where it goes
£894Mortgage£333Costs
Outgoings exceed rent — you top up £409/mo
Mortgage£894
Costs£333
Management£85
Maintenance£67
Insurance£28
CapEx reserve£43
Voids + council tax£6
Ltd co. accounts£104
Tax—
Shortfall−£409
Returns
Return before costs on price4.64%
Cash return on cash-6.53%
Gross margin£484
Cash needed£75,250
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.91
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 | £10,200 | £3,995 | £10,725 | £0 | £0 | -£4,519 | -£4,519 |
| Year 2 | £10,506 | £4,114 | £10,725 | £0 | £0 | -£4,333 | -£8,853 |
| Year 3 | £10,821 | £4,238 | £10,725 | £0 | £0 | -£4,142 | -£12,994 |
| Year 4 | £11,146 | £4,365 | £10,725 | £0 | £0 | -£3,944 | -£16,939 |
| Year 5 | £11,480 | £4,496 | £10,725 | £0 | £0 | -£3,741 | -£20,679 |
Disposal gain (gross)£875
CGT£166
Net Disposal proceeds£236,659
What we verified
What we verified
42054 ok · 2 caution · 0 fail · 5 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
1 checks- TenureFreehold
Building condition
Energy ratingE
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand E
MEES 2030 compliance
C required for new tenancies
FAIL
Upgrade to C
estimated cost
£6k–£12k
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 cohortDE1 1DT · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University of Nottingham · 19.8 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 · 2-bath · 810 sqft
£25k–£49k
£ per sqft
building cost only
£31–£61
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- 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 — -£285/mo · £124/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 | 4.64% | -£409 | £75,250 | -27.5% | Low | Feasible |
| Housing-benefit rent | 3.23% | -£659 | £75,250 | -47.5% | Med | Feasible |
| ⭐ Council lease | 4.64% | -£285 | £75,250 | -19.8% | Low | Feasible |
| Refurb & refinance | 4.64% | -£409 | £86,790 | -23.8% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£199 | £236,490 | 10% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Housing-benefit (LHA) scheme detailBRMA Derby · cap £593/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Derby
- LHA monthly cap:
- £593
- 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
+£497/mo cash flow vs Rent it out if converted to Rent by the room
13.09% Return before costs on price converted vs 4.64% as-is
As-is Rent it out
Monthly profit-£372
Return before costs on price4.64%
Cash needed£66,898
If converted to Rent by the room
Monthly profit+£124
Return before costs on price13.09%
Cash needed£82,898
Δ vs Rent it out Monthly profit+£497
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
£40,000
Range: £34,000 – £48,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£48,390–£90,830full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 2 × bathroom£11,400–£20,900
- 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 miLoading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment2 schools nearby
Nearby schoolsOfsted-rated, nearest first2 of 5
- GoodDerby Cathedral SchoolSecondary · Free schools · DE1 1LR
- Not ratedAshgate Nursery SchoolNursery · Local authority nursery school · DE1 1GJ
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£10,200
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£4,912
Exit costs
Projected sale price (5y · 2%/yr growth)£242,898
Capital gain (pre-CGT)£22,898
Sale costs (~2.5%)£6,072
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-£20,679
Rates as of Oct 2024
Acquisition costs
£75,250cash neededPurchase price£220,000
Deposit (25%)£55,000
Stamp duty+5% additional-property surcharge£12,900
Refurb£1,350
Legal + survey£1,700
Mortgage fees£4,300
Total cash neededdeposit + costs (loan covers the rest)£75,250
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Summary No onward chain - a truly beautiful, two double bedroom, semi-detached home in the heart of Derby City Centre.
Description Ashley Adams are delighted to bring to market this beautifully extended and renovated, two bedroom semi-detached home just a short walk from Derby City Centre. The accommodation in brief comprises of; entrance hall, kitchen/dining room, living room, utility room, ground floor wet room, two double, first floor bedrooms and family bathroom. Outside…
Floor plans
Listing metazoopla · Ashley Adams - Derby
About this listing
ZooplaPrice history
5-year price trend
Monthly profit
−£409
Cash needed
£75K
Return after costs
-6.53%
IRR
-6.69%
Ponsonby Terrace, Derby DE1
semi_detached · 2 bed · 2 bath
£220,000
est £850 · 4.64% gross
EPC E
1 / 21
0/100
Marginal
4.64% — verify the rent + comps locally.
Energy rating E — Min. energy standard blocker by 2030 (~£6,000–£12,000 upgrade)
Price
£220K
Return before costs
4.64%
est rent £850/monot enough comparablesRange £775–£932/mo (Q1–Q3)
Bedrooms
2
2 bath
Energy rating
E
MEES (Minimum Energy Efficiency Standards) blocker by 2030
~£6,000–£12,000 upgrade
~£6,000–£12,000 upgrade
Deal flags1 issue
EPC E — upgrade by 2030
Must reach EPC C by 2030 to let on a new tenancy
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: £775–£932/mo · n=102
Financing
DepositYour cash in — the rest is the mortgage25% · £55,000
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 — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £165,000 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)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£409
after mortgage, operating costs & tax
Rent in£850/mo gross
£817/mo collected · £33/mo lost to voids
Where it goes
£894Mortgage£333Costs
Outgoings exceed rent — you top up £409/mo
Mortgage£894
Costs£333
Management£85
Maintenance£67
Insurance£28
CapEx reserve£43
Voids + council tax£6
Ltd co. accounts£104
Tax—
Shortfall−£409
Returns
Return before costs on price4.64%
Cash return on cash-6.53%
Gross margin£484
Cash needed£75,250
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.91
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Housing-benefit (LHA) scheme detailBRMA Derby · cap £593/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Derby
- LHA monthly cap:
- £593
- 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 | £10,200 | £3,995 | £10,725 | £0 | £0 | -£4,519 | -£4,519 |
| Year 2 | £10,506 | £4,114 | £10,725 | £0 | £0 | -£4,333 | -£8,853 |
| Year 3 | £10,821 | £4,238 | £10,725 | £0 | £0 | -£4,142 | -£12,994 |
| Year 4 | £11,146 | £4,365 | £10,725 | £0 | £0 | -£3,944 | -£16,939 |
| Year 5 | £11,480 | £4,496 | £10,725 | £0 | £0 | -£3,741 | -£20,679 |
Rent by the room upside
What we verified
3216
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▾
EPC~£6,000–£12,000 to upgrade to CE
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 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,145
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£20,679
Acquisition costs
25% deposit£55,000
Stamp duty£12,900
Refurb£1,350
Legal + survey£1,700
Mortgage + broker£4,300
Cash needed£75,250
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
Summary No onward chain - a truly beautiful, two double bedroom, semi-detached home in the heart of Derby City Centre.
Description Ashley Adams are delighted to bring to market this beautifully extended and renovated, two bedroom semi-detached home just a short walk from Derby City Centre. The accommodation in brief comprises of; entrance hall, kitchen/dining room, living room, utility room, ground floor wet room, two double, first floor bedrooms and family bathroom. Outside…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice