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Year 5 disposal
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Weak
4.03% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- EPC D — must hit C by 2030 (~£3,000–£7,000)
- Monthly profit −£1,249/mo — heavily negative — needs monthly capital injection
- -6.1% 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
−£1K/mo
You top up £1K/mo
Price vs market
Above comparable sales
+43% vs 12 sold
Return · IRR
-6.1%/yr
Loses money over 5 years
Cash to get in
£299K
Deposit + fees + refurb
Price £750KReturn before costs on price 4.03%5-yr return on cash -21%Rent est. £2,519 (£2,516–£2,522)
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: £2,516–£2,522/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £187,500
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 (£23,295–£43,484 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £562,500 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 £400K+
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£1,249
after mortgage, operating costs & tax
Rent in£2,519/mo gross
£2,422/mo collected · £97/mo lost to voids
Where it goes
£3,047Mortgage£625Costs
Outgoings exceed rent — you top up £1,249/mo
Mortgage£3,047
Costs£625
Management£252
Maintenance£67
Insurance£40
CapEx reserve£126
Voids + council tax£11
Ltd co. accounts£104
Selective licensing£25
Tax—
Shortfall−£1,249
Returns
Return before costs on price4.03%
Cash return on cash-5.02%
Gross margin£1,798
Cash needed£298,710
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.79
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 | £30,228 | £7,495 | £36,563 | £0 | £0 | -£13,829 | -£13,829 |
| Year 2 | £31,135 | £7,720 | £36,563 | £0 | £0 | -£13,147 | -£26,976 |
| Year 3 | £32,069 | £7,951 | £36,563 | £0 | £0 | -£12,445 | -£39,421 |
| Year 4 | £33,031 | £8,190 | £36,563 | £0 | £0 | -£11,721 | -£51,142 |
| Year 5 | £34,022 | £8,435 | £36,563 | £0 | £0 | -£10,976 | -£62,118 |
Disposal gain (gross)-£41,601
CGT£0
Net Disposal proceeds£807,359
What we verified
What we verified
51065 ok · 1 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
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
⚠️ Selective Licensing in scope
Selective scheme covering designated wards
Rates as of May 2026
Building condition
Energy ratingD
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand D
MEES 2030 compliance
C required for new tenancies
FAIL
Upgrade to C
estimated cost
£3k–£7k
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 cohortRM11 1EZ · 4 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
Queen Mary · 18.4 km
Reason
4-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
4-bed · 2-bath · 1441 sqft · London ×1.4
£48k–£91k
£ per sqft
building cost only
£33–£63
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£4,640–£10,440
- 2 × bathroom · Full strip + retile£8,400–£16,800
- Paint + decor£14,410–£25,938
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£20,174–£37,466
Guide rates · UK May 2026
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 — -£1,142/mo · £82/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 | 4.03% | -£1,249 | £298,710 | -20.8% | Low | Feasible |
| Housing-benefit rent | 2.87% | -£1,945 | £298,710 | -34.8% | Med | Feasible |
| ⭐ Council lease | 4.03% | -£1,142 | £298,710 | -20.6% | Low | Feasible |
| Refurb & refinance | 4.03% | -£1,224 | £348,634 | -17.4% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£211 | £861,384 | 4% | Med | Feasible |
| Rent by the room | 3.84% | -£2,249 | £298,710 | -40.1% | — | Feasible |
Housing-benefit (LHA) scheme detailBRMA Outer North East London · cap £1,795/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Outer North East London
- LHA monthly cap:
- £1,795
- Scheme type:
- other
- Premium:
- +500% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- landlord pays agent (typical 10%)
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
-£829/mo cash flow vs Rent it out if converted to Rent by the room
3.84% Return before costs on price converted vs 4.03% as-is
As-is Rent it out
Monthly profit-£1,088
Return before costs on price4.03%
Cash needed£199,398
If converted to Rent by the room
Monthly profit-£1,917
Return before costs on price3.84%
Cash needed£215,398
Δ vs Rent it out Monthly profit-£829
Show conversion detail
Conversion cost estimate
£36,400
Range: £28,000 – £47,600
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£88,244–£164,001full refurb + room split
What's in this cost
- Kitchen£10,440–£20,880
- 2 × bathroom£14,400–£26,400
- Rewire£7,205–£12,969
- Replumb£5,764–£11,528
- Windows£15,851–£28,820
- Paint + decor£14,410–£25,938
- Flooring£20,174–£37,466
Comparables
sold within 0.5 miWide · CV 15.3%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score90 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment2 schools nearby
Nearby schoolsOfsted-rated, nearest first2 of 5
- Not ratedTowers Infant SchoolPrimary · Community school · RM11 1HP
- Not ratedTowers Junior SchoolPrimary · Community school · RM11 1PD
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£30,228
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£14,992
Exit costs
Projected sale price (5y · 2%/yr growth)£828,061
Capital gain (pre-CGT)£78,061
Sale costs (~2.5%)£20,702
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-£62,118
Rates as of Oct 2024
Acquisition costs
£298,710cash neededPurchase price£750,000
Deposit (25%)£187,500
Stamp duty+5% additional-property surcharge£65,000
Refurb£31,060
Legal + survey£2,900
Mortgage fees£12,250
Total cash neededdeposit + costs (loan covers the rest)£298,710
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Description
Chain Free Lux Homes have the pleasure of bringing to the market this stunning semi detached four-bedroom and spacious living family home situated on Cromer Road located in the heart of Hornchurch. Offering stylish high specification throughout in addition to being beautifully presented and tastefully decorated by the current owners makes this property a perfect purchase for the ever-growing family.
As we enter the property, we are greeted with a flawless deco…
Floor plans
Listing metazoopla · Lux Homes
About this listing
ZooplaPrice history
5-year price trend
Monthly profit
−£1,249
Cash needed
£299K
Return after costs
-5.02%
IRR
-6.06%
Cromer Road, Hornchurch RM11
semi_detached · 4 bed · 2 bath · 1,441 sqft
£750,000
est £2,519 · 4.03% gross
Chain freeEPC D
1 / 28
0/100
Marginal
4.03% — verify the rent + comps locally.
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Chain free
Price
£750K
43% above sold comps
Return before costs
4.03%
est rent £2,519/monot enough comparablesRange £2,516–£2,522/mo (Q1–Q3)
Bedrooms
4
2 bath
Energy rating
D
Energy rating
Deal flags1 issue
EPC D — 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: £2,516–£2,522/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £187,500
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 (£23,295–£43,484 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £562,500 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 £400K+
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£1,249
after mortgage, operating costs & tax
Rent in£2,519/mo gross
£2,422/mo collected · £97/mo lost to voids
Where it goes
£3,047Mortgage£625Costs
Outgoings exceed rent — you top up £1,249/mo
Mortgage£3,047
Costs£625
Management£252
Maintenance£67
Insurance£40
CapEx reserve£126
Voids + council tax£11
Ltd co. accounts£104
Selective licensing£25
Tax—
Shortfall−£1,249
Returns
Return before costs on price4.03%
Cash return on cash-5.02%
Gross margin£1,798
Cash needed£298,710
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.79
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Housing-benefit (LHA) scheme detailBRMA Outer North East London · cap £1,795/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Outer North East London
- LHA monthly cap:
- £1,795
- Scheme type:
- other
- Premium:
- +500% premium over LHA cap
- Typical lease:
- 0 years lease
- Management:
- landlord pays agent (typical 10%)
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 | £30,228 | £7,495 | £36,563 | £0 | £0 | -£13,829 | -£13,829 |
| Year 2 | £31,135 | £7,720 | £36,563 | £0 | £0 | -£13,147 | -£26,976 |
| Year 3 | £32,069 | £7,951 | £36,563 | £0 | £0 | -£12,445 | -£39,421 |
| Year 4 | £33,031 | £8,190 | £36,563 | £0 | £0 | -£11,721 | -£51,142 |
| Year 5 | £34,022 | £8,435 | £36,563 | £0 | £0 | -£10,976 | -£62,118 |
Rent by the room upside
What we verified
5106
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▾
EPC~£3,000–£7,000 to upgrade to CD
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 15.3%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£7,313
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£62,118
Acquisition costs
25% deposit£187,500
Stamp duty£65,000
Refurb£31,060
Legal + survey£2,900
Mortgage + broker£12,250
Cash needed£298,710
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
Description
Chain Free Lux Homes have the pleasure of bringing to the market this stunning semi detached four-bedroom and spacious living family home situated on Cromer Road located in the heart of Hornchurch. Offering stylish high specification throughout in addition to being beautifully presented and tastefully decorated by the current owners makes this property a perfect purchase for the ever-growing family.
As we enter the property, we are greeted with a flawless deco…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice