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Year 5 disposal
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Weak
2.83% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- 2.83% return — below most lender Rent-covers-mortgage checks
- Monthly profit −£2,947/mo — heavily negative — needs monthly capital injection
- -10.2% 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
−£3K/mo
You top up £3K/mo
Price
£1.25M
No local sold comps to compare
Return · IRR
-10.2%/yr
Loses money over 5 years
Cash to get in
£469K
Deposit + fees + refurb
Return before costs on price 2.83%5-yr return on cash -34%Rent est. £2,945 (£2,503–£3,465)
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: £2,503–£3,465/mo · n=1
Financing
DepositYour cash in — the rest is the mortgage25% · £312,500
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 (£1,406–£2,625 range), VAT-inclusive
Legal + survey (£)
Standard house — £2,400 legal + £1,300 survey
Mortgage fees (£)
2% product fee on £937,500 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)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£2,947
after mortgage, operating costs & tax
Rent in£2,945/mo gross
£2,832/mo collected · £113/mo lost to voids
Where it goes
£5,078Mortgage
Outgoings exceed rent — you top up £2,947/mo
Mortgage£5,078
Costs£701
Management£295
Maintenance£100
Insurance£40
CapEx reserve£147
Voids + council tax£15
Ltd co. accounts£104
Tax—
Shortfall−£2,947
Returns
Return before costs on price2.83%
Cash return on cash-7.54%
Gross margin£2,131
Cash needed£469,075
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.56
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 | £35,340 | £8,413 | £60,938 | £0 | £0 | -£34,010 | -£34,010 |
| Year 2 | £36,400 | £8,665 | £60,938 | £0 | £0 | -£33,202 | -£67,212 |
| Year 3 | £37,492 | £8,925 | £60,938 | £0 | £0 | -£32,370 | -£99,582 |
| Year 4 | £38,617 | £9,193 | £60,938 | £0 | £0 | -£31,513 | -£131,095 |
| Year 5 | £39,775 | £9,468 | £60,938 | £0 | £0 | -£30,630 | -£161,726 |
Disposal gain (gross)-£41,227
CGT£0
Net Disposal proceeds£1,345,598
What we verified
What we verified
50075 ok · 0 caution · 0 fail · 7 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
Additional HMO — district-wide
Rates as of May 2026
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 profileFamily let
Tenant profilelikely cohortRG4 6DS · 5 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
University of Reading · 3.8 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 · 4-bath · 3063 sqft
£72k–£139k
£ per sqft
building cost only
£24–£46
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 4 × bathroom · Full strip + retile£13,300–£26,600
- Paint + decor£21,441–£39,819
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£33,693–£64,323
Guide rates · UK May 2026
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 history0d on marketno cuts yet
Strategy matrix
Council lease wins — -£2,819/mo · £128/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 | 2.83% | -£2,947 | £469,075 | -34.5% | Low | Feasible |
| Housing-benefit rent | 1.58% | -£4,111 | £469,075 | -50.1% | Med | Feasible |
| ⭐ Council lease | 2.83% | -£2,819 | £469,075 | -34.3% | Low | Feasible |
| Refurb & refinance | 2.83% | -£2,947 | £532,325 | -30.4% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£244 | £1,387,575 | 7% | Med | Feasible |
| Rent by the room | 3.65% | -£3,568 | £469,075 | -40.4% | — | Feasible |
Housing-benefit (LHA) scheme detailBRMA Reading · cap £1,649/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Reading
- LHA monthly cap:
- £1,649
- Scheme type:
- other
- Premium:
- +700% 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
-£1,174/mo cash flow vs Rent it out if converted to Rent by the room
2.30% Return before costs on price converted vs 2.83% as-is
As-is Rent it out
Monthly profit-£2,696
Return before costs on price2.83%
Cash needed£324,398
If converted to Rent by the room
Monthly profit-£3,870
Return before costs on price2.30%
Cash needed£340,398
Δ vs Rent it out Monthly profit-£1,174
Show conversion detail
Conversion cost estimate
£3,750
Range: £2,500 – £6,250
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£171,672–£302,088full refurb + room split
What's in this cost
- Kitchen£9,900–£19,800
- 4 × bathroom£27,000–£49,500
- Rewire£15,315–£24,504
- Replumb£12,252–£21,441
- Windows£33,693–£58,197
- Paint + decor£30,630–£52,071
- Flooring£42,882–£76,575
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 & catchment5 schools nearby
Nearby schoolsOfsted-rated, nearest first5 of 5
- GoodSt Martin's Catholic Primary SchoolPrimary · Voluntary aided school · RG4 6SS
- Not ratedQueen Anne's SchoolNot applicable · Other independent school · RG4 6DX
- Not ratedReading Blue Coat SchoolNot applicable · Other independent school · RG4 6SU
- Not ratedCaversham Park Primary SchoolPrimary · Community school · RG4 6RP
- Not ratedMicklands Primary SchoolPrimary · Community school · RG4 6LU
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£35,340
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£35,369
Exit costs
Projected sale price (5y · 2%/yr growth)£1,380,101
Capital gain (pre-CGT)£130,101
Sale costs (~2.5%)£34,503
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-£161,726
Rates as of Oct 2024
Acquisition costs
£469,075cash neededPurchase price£1,250,000
Deposit (25%)£312,500
Stamp duty+5% additional-property surcharge£131,250
Refurb£1,875
Legal + survey£3,700
Mortgage fees£19,750
Total cash neededdeposit + costs (loan covers the rest)£469,075
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Open House Saturday 24th October 10am – 1pm
Behind its private gates, Henley Road gives little away. Inside, bespoke interiors open onto an entertaining terrace, outdoor kitchen, annexe, large lawn, with a secret garden and gym beyond. A home full of unexpected character.
Accommodation summary:
The reception hall introduces the home’s individual sense of style. A tall internal picture window offers a glimpse of the living space, while the art studio sits just off the entra…
Floor plans
Listing metazoopla · Fine & Country - Birmingham
About this listing
ZooplaPrice history
5-year price trend
Monthly profit
−£2,947
Cash needed
£469K
Return after costs
-7.54%
IRR
-10.23%
Henley Road Caversham Reading, Berkshire RG4
detached · 5 bed · 4 bath · 3,063 sqft
£1,250,000
est £2,945 · 2.83% gross
1 / 40
0/100
Marginal
2.83% — verify the rent + comps locally.
2.83% Return before costs — around the area average for this property type.
Monthly profit −£2,947/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£1.3M
Return before costs
2.83%
est rent £2,945/monot enough comparablesRange £2,503–£3,465/mo (Q1–Q3)
Bedrooms
5
4 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: £2,503–£3,465/mo · n=1
Financing
DepositYour cash in — the rest is the mortgage25% · £312,500
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 (£1,406–£2,625 range), VAT-inclusive
Legal + survey (£)
Standard house — £2,400 legal + £1,300 survey
Mortgage fees (£)
2% product fee on £937,500 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)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£2,947
after mortgage, operating costs & tax
Rent in£2,945/mo gross
£2,832/mo collected · £113/mo lost to voids
Where it goes
£5,078Mortgage
Outgoings exceed rent — you top up £2,947/mo
Mortgage£5,078
Costs£701
Management£295
Maintenance£100
Insurance£40
CapEx reserve£147
Voids + council tax£15
Ltd co. accounts£104
Tax—
Shortfall−£2,947
Returns
Return before costs on price2.83%
Cash return on cash-7.54%
Gross margin£2,131
Cash needed£469,075
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.56
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Housing-benefit (LHA) scheme detailBRMA Reading · cap £1,649/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Reading
- LHA monthly cap:
- £1,649
- Scheme type:
- other
- Premium:
- +700% 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 | £35,340 | £8,413 | £60,938 | £0 | £0 | -£34,010 | -£34,010 |
| Year 2 | £36,400 | £8,665 | £60,938 | £0 | £0 | -£33,202 | -£67,212 |
| Year 3 | £37,492 | £8,925 | £60,938 | £0 | £0 | -£32,370 | -£99,582 |
| Year 4 | £38,617 | £9,193 | £60,938 | £0 | £0 | -£31,513 | -£131,095 |
| Year 5 | £39,775 | £9,468 | £60,938 | £0 | £0 | -£30,630 | -£161,726 |
Rent by the room upside
What we verified
5007
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▾
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 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£12,188
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£161,726
Acquisition costs
25% deposit£312,500
Stamp duty£131,250
Refurb£1,875
Legal + survey£3,700
Mortgage + broker£19,750
Cash needed£469,075
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
Open House Saturday 24th October 10am – 1pm
Behind its private gates, Henley Road gives little away. Inside, bespoke interiors open onto an entertaining terrace, outdoor kitchen, annexe, large lawn, with a secret garden and gym beyond. A home full of unexpected character.
Accommodation summary:
The reception hall introduces the home’s individual sense of style. A tall internal picture window offers a glimpse of the living space, while the art studio sits just off the entra…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice