Skip to main contenthow this is calculated →
Year 5 disposal
⊞ View all 12
84/ 100
Strong
8.38% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 8.38% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- EPC D — must hit C by 2030 (~£3,000–£7,000)
- 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
+£107/mo
Barely breaks even each month
Price
£200K
No local sold comps to compare
Return · IRR
1.9%/yr
Modest annualised return
Cash to get in
£94K
Deposit + fees + refurb
Return before costs on price 8.38%5-yr return on cash 13%Rent est. £1,397 (£1,370–£1,425)
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: £1,370–£1,425/mo · n=6
Financing
DepositYour cash in — the rest is the mortgage25% · £50,000
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 (£20,155–£37,622 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £150,000 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
+£107
after mortgage, operating costs & tax
Rent in£1,397/mo gross
£1,343/mo collected · £54/mo lost to voids
Where it goes
£813Mortgage£399Costs
£107/mo left as profit · 8% of rent kept
Mortgage£813
Costs£399
Management£140
Maintenance£50
Insurance£28
CapEx reserve£70
Voids + council tax£7
Ltd co. accounts£104
Tax£25
Profit+£107
Returns
Return before costs on price8.38%
Cash return on cash1.36%
Gross margin£944
Cash needed£94,073
Monthly profit payback73y 7m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.65
Rent-covers-mortgage check PASS · stress 6.5% (target 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 | £16,764 | £4,790 | £9,750 | £0 | £423 | £1,801 | £1,801 |
| Year 2 | £17,267 | £4,933 | £9,750 | £0 | £491 | £2,093 | £3,894 |
| Year 3 | £17,785 | £5,081 | £9,750 | £0 | £561 | £2,393 | £6,287 |
| Year 4 | £18,318 | £5,234 | £9,750 | £0 | £634 | £2,701 | £8,987 |
| Year 5 | £18,868 | £5,391 | £9,750 | £0 | £708 | £3,019 | £12,007 |
Disposal gain (gross)-£24,777
CGT£0
Net Disposal proceeds£215,296
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
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 100m (below threshold)
- local council HMO approval rate 71% (58 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 100 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 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 cohortWR1 1PR · 4 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
University of Birmingham · 34.1 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 · 1-bath · 1997 sqft
£43k–£83k
£ per sqft
building cost only
£22–£42
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£13,979–£25,961
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£21,967–£41,937
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
Rent it out wins — +£107/mo · level with Refurb & refinance
| Strategy | Return before costs on price | Monthly profit | Cash needed | 5y Return on your cash on cash | Risk | Feasibility |
|---|---|---|---|---|---|---|
| ⭐ Rent it out | 8.38% | +£107 | £94,073 | 12.8% | Low | Feasible |
| Housing-benefit rent | 6.88% | -£146 | £94,073 | -0.8% | Med | Feasible |
| Council lease | 6.88% | +£77 | £94,073 | 7.8% | Low | Feasible |
| Refurb & refinance | 8.38% | +£107 | £114,822 | 10.5% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£182 | £250,822 | -3% | Med | Feasible |
| Rent by the room | 14.16% | +£69 | £94,073 | 17.3% | — | Feasible |
Housing-benefit (LHA) scheme detailBRMA Worcester South · cap £1,147/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Worcester South
- LHA monthly cap:
- £1,147
- Scheme type:
- nominee
- Premium:
- +0% premium over LHA cap
- 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
+£66/mo cash flow vs Rent it out if converted to Rent by the room
14.40% Return before costs on price converted vs 8.38% as-is
As-is Rent it out
Monthly profit+£121
Return before costs on price8.38%
Cash needed£61,898
If converted to Rent by the room
Monthly profit+£187
Return before costs on price14.40%
Cash needed£77,898
Δ vs Rent it out Monthly profit+£66
Show conversion detail
Conversion cost estimate
£30,000
Range: £24,000 – £38,000
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 100m (below threshold)
- local council HMO approval rate 71% (58 decisions)
≈0.0% within 100 m vs 10% policy
£64,165–£120,000full refurb + room split
⚠️ Capped at 60% of £200,000 asking (£120,000). Raw model: £84,235–£157,535. Verify with a surveyor before offering.
What's in this cost
- Kitchen£6,581–£13,163
- 1 × bathroom£4,342–£7,960
- Rewire£6,085–£10,648
- Replumb£4,564–£9,127
- Windows£15,212–£27,381
- Paint + decor£10,648–£19,775
- Flooring£16,733–£31,945
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
Local HMO policy & concentration
≈0.0% within 100 m vs 10% policy
Schools & catchment2 schools nearby
Nearby schoolsOfsted-rated, nearest first2 of 5
- GoodSt George's CofE Primary SchoolPrimary · Voluntary aided school · WR1 1RD
- Not ratedRoyal Grammar School WorcesterNot applicable · Other independent school · WR1 1HP
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£16,764
Section 24 credit£0
Annual tax due£423
Post-tax Monthly profit annual£1,157
Exit costs
Projected sale price (5y · 2%/yr growth)£220,816
Capital gain (pre-CGT)£20,816
Sale costs (~2.5%)£5,520
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£12,007
Rates as of Oct 2024
Acquisition costs
£94,073cash neededPurchase price£200,000
Deposit (25%)£50,000
Stamp duty+5% additional-property surcharge£11,500
Refurb£26,873
Legal + survey£1,700
Mortgage fees£4,000
Total cash neededdeposit + costs (loan covers the rest)£94,073
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
excellent investment opportunity
Chestnut Walk is situated within a short walk of the city centre. Spread over three floors, the property has over 1990 Sq Ft of living space to renovate and create a substantial home.
Location: Chestnut Walk is a predominantly residential street situated within the WR1 postcode of Worcester. Chestnut Walk is conveniently positioned close to Worcester city centre, with good access to local amenities, public transport links and green spaces wi…
Floor plans
Listing metazoopla · Arden Estates
About this listing
ZooplaPrice history
5-year price trend
Monthly profit
+£107
Cash needed
£94K
Return after costs
1.36%
IRR
1.86%
Chestnut Walk, Worcester WR1
terraced · 4 bed · 1 bath · 1,997 sqft
£200,000
est £1,397 · 8.38% gross
EPC D
1 / 12
84/100
Strong
8.38% — verify the rent + comps locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
8.38% Return before costs — above-market
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Price
£200K
Return before costs
8.38%
est rent £1,397/monot enough comparablesRange £1,370–£1,425/mo (Q1–Q3)
Bedrooms
4
1 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: £1,370–£1,425/mo · n=6
Financing
DepositYour cash in — the rest is the mortgage25% · £50,000
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 (£20,155–£37,622 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £150,000 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
+£107
after mortgage, operating costs & tax
Rent in£1,397/mo gross
£1,343/mo collected · £54/mo lost to voids
Where it goes
£813Mortgage£399Costs
£107/mo left as profit · 8% of rent kept
Mortgage£813
Costs£399
Management£140
Maintenance£50
Insurance£28
CapEx reserve£70
Voids + council tax£7
Ltd co. accounts£104
Tax£25
Profit+£107
Returns
Return before costs on price8.38%
Cash return on cash1.36%
Gross margin£944
Cash needed£94,073
Monthly profit payback73y 7m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.65
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Worcester South · cap £1,147/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Worcester South
- LHA monthly cap:
- £1,147
- Scheme type:
- nominee
- Premium:
- +0% premium over LHA cap
- 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 | £16,764 | £4,790 | £9,750 | £0 | £423 | £1,801 | £1,801 |
| Year 2 | £17,267 | £4,933 | £9,750 | £0 | £491 | £2,093 | £3,894 |
| Year 3 | £17,785 | £5,081 | £9,750 | £0 | £561 | £2,393 | £6,287 |
| Year 4 | £18,318 | £5,234 | £9,750 | £0 | £634 | £2,701 | £8,987 |
| Year 5 | £18,868 | £5,391 | £9,750 | £0 | £708 | £3,019 | £12,007 |
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 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,950
Annual rental tax£300
CGT yr 5£0 · company level
5y net total£12,007
Acquisition costs
25% deposit£50,000
Stamp duty£11,500
Refurb£26,873
Legal + survey£1,700
Mortgage + broker£4,000
Cash needed£94,073
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
excellent investment opportunity
Chestnut Walk is situated within a short walk of the city centre. Spread over three floors, the property has over 1990 Sq Ft of living space to renovate and create a substantial home.
Location: Chestnut Walk is a predominantly residential street situated within the WR1 postcode of Worcester. Chestnut Walk is conveniently positioned close to Worcester city centre, with good access to local amenities, public transport links and green spaces wi…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice