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Year 5 disposal
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Weak
9.17% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 9.17% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- Lease 64 yrs — mortgageability risk
- Monthly profit −£75/mo — mildly negative — equity build may cover
- -1.7% 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
−£75/mo
You top up £75/mo
Price
£123K
No local sold comps to compare
Return · IRR
-1.7%/yr
Loses money over 5 years
Cash to get in
£48K
Deposit + fees + refurb
Return before costs on price 9.17%5-yr return on cash -1%Rent est. £936 (£876–£1,000)
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: £876–£1,000/mo · n=133
Financing
DepositYour cash in — the rest is the mortgage25% · £30,625
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 (£4,813–£8,984 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £91,875 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 sub-£200K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£75
after mortgage, operating costs & tax
Rent in£936/mo gross
£900/mo collected · £36/mo lost to voids
Where it goes
£498Mortgage£477Costs
Outgoings exceed rent — you top up £75/mo
Mortgage£498
Costs£477
Management£94
Maintenance£67
Insurance£20
CapEx reserve£47
Voids + council tax£6
Service charge + ground rent£140
Ltd co. accounts£104
Tax—
Shortfall−£75
Returns
Return before costs on price9.17%
Cash return on cash-1.87%
Gross margin£423
Cash needed£48,005
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.81
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 | £11,232 | £5,725 | £5,972 | £0 | £0 | -£465 | -£465 |
| Year 2 | £11,569 | £5,897 | £5,972 | £0 | £0 | -£299 | -£764 |
| Year 3 | £11,916 | £6,073 | £5,972 | £0 | £0 | -£129 | -£893 |
| Year 4 | £12,274 | £6,256 | £5,972 | £0 | £9 | £37 | -£856 |
| Year 5 | £12,642 | £6,443 | £5,972 | £0 | £43 | £184 | -£673 |
Disposal gain (gross)-£5,173
CGT£0
Net Disposal proceeds£131,869
What we verified
What we verified
21262 ok · 1 caution · 2 fail · 6 unknown
Legal & planning
Leasehold64 yr
Tenure & planning64 yr
Legal & planning
2 checks- TenureLeasehold
- Lease lengthUnknown
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
EWS1& cladding statusListing signal
OKInfoVerifyCritical
Severity
Inferred from listing text
Verify
Lender impact
No EWS1 / floor info in description. Buildings > 11 m need EWS1 or PAS 9980 — confirm height + status with the agent before offering.
Verify with lender
A1/A2 = mortgageable · B1 = mortgageable with plan · B2 = remediation required
RICS EWS1 guidance →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 cohortSO16 9RA · 1 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University of Southampton · 3.9 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
1-bed · 1-bath · 630 sqft
£19k–£37k
£ per sqft
building cost only
£29–£58
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£4,410–£8,190
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£6,930–£13,230
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 — +£49/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 | 9.17% | -£75 | £48,005 | -1.4% | Low | Feasible |
| Housing-benefit rent | 6.84% | -£314 | £48,005 | -30.7% | Med | Feasible |
| ⭐ Council lease | 9.17% | +£49 | £48,005 | 9.6% | Low | Feasible |
| Refurb & refinance | 9.17% | -£75 | £56,697 | -1.2% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£331 | £139,609 | 4% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £698/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £698
- 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
+£369/mo cash flow vs Rent it out if converted to Rent by the room
23.51% Return before costs on price converted vs 9.17% as-is
As-is Rent it out
Monthly profit+£63
Return before costs on price9.17%
Cash needed£42,523
If converted to Rent by the room
Monthly profit+£433
Return before costs on price23.51%
Cash needed£58,523
Δ vs Rent it out Monthly profit+£369
Show conversion detail
Cannot Rent by the room:Only 1 bed — too small for an HMO (3+ unrelated tenants from 2+ households) without major reconfiguration.
Planning approval likelihood
Likely approvable · 71% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
≈0.0% within 40 m vs 10% policy
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
Southampton City-wide HMO Article 4
≈0.0% within 40 m vs 10% policy
Schools & catchment5 schools nearby
Nearby schoolsOfsted-rated, nearest first5 of 5
- GoodCompass SchoolNot applicable · Pupil referral unit · SO16 9FQ
- Not ratedHoly Family Catholic Primary School - Part of the Learning Federation Partnership of SchoolsPrimary · Voluntary aided school · SO16 9LP
- Not ratedMansel Park Primary & Nursery School - Part of the Learning Federation Partnership of SchoolsPrimary · Community school · SO16 9HZ
- Not ratedNewlands Primary SchoolPrimary · Foundation school · SO16 9QX
- Not ratedRedbridge Primary SchoolPrimary · Foundation school · SO16 9BB
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£11,232
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£897
Exit costs
Projected sale price (5y · 2%/yr growth)£135,250
Capital gain (pre-CGT)£12,750
Sale costs (~2.5%)£3,381
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-£673
Rates as of Oct 2024
Acquisition costs
£48,005cash neededPurchase price£122,500
Deposit (25%)£30,625
Stamp duty+5% additional-property surcharge£6,125
Refurb£6,417
Legal + survey£2,000
Mortgage fees£2,838
Total cash neededdeposit + costs (loan covers the rest)£48,005
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · zoopla
Description& agent copyZoopla
Summary An ideal opportunity for first-time buyers or investors, this beautifully presented ground-floor one-bedroom apartment is set within a quiet residential development in Kern Close, Southampton.
Description The home opens into a welcoming entrance hall that provides useful built-in storage. The bright and cozy reception room is finished with neutral decor and soft carpeted flooring, featuring a large double-glazed window that floods the room with natural light. An open…
Floor plans
Listing metazoopla · Fox & Sons - Southampton
About this listing
ZooplaPrice history
5-year price trend
Monthly profit
−£75
Cash needed
£48K
Return after costs
-1.87%
IRR
-1.69%
Kern Close, Southampton SO16
flat · 1 bed · 1 bath
£122,500
est £936 · 9.17% gross
Leasehold 64yr
1 / 13
0/100
Marginal
9.17% — verify the rent + comps locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
9.17% Return before costs — above-market
Lease 64 yrs — mortgage risk
Price
£123K
Return before costs
9.17%
est rent £936/monot enough comparablesRange £876–£1,000/mo (Q1–Q3)
Bedrooms
1
1 bath
Energy rating
—
Energy rating
Deal flags1 issue
Lease — 64 yrs
Below 80 yrs — extend before remortgage or exit
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: £876–£1,000/mo · n=133
Financing
DepositYour cash in — the rest is the mortgage25% · £30,625
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 (£4,813–£8,984 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £91,875 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 sub-£200K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£75
after mortgage, operating costs & tax
Rent in£936/mo gross
£900/mo collected · £36/mo lost to voids
Where it goes
£498Mortgage£477Costs
Outgoings exceed rent — you top up £75/mo
Mortgage£498
Costs£477
Management£94
Maintenance£67
Insurance£20
CapEx reserve£47
Voids + council tax£6
Service charge + ground rent£140
Ltd co. accounts£104
Tax—
Shortfall−£75
Returns
Return before costs on price9.17%
Cash return on cash-1.87%
Gross margin£423
Cash needed£48,005
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.81
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £698/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £698
- 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 | £11,232 | £5,725 | £5,972 | £0 | £0 | -£465 | -£465 |
| Year 2 | £11,569 | £5,897 | £5,972 | £0 | £0 | -£299 | -£764 |
| Year 3 | £11,916 | £6,073 | £5,972 | £0 | £0 | -£129 | -£893 |
| Year 4 | £12,274 | £6,256 | £5,972 | £0 | £9 | £37 | -£856 |
| Year 5 | £12,642 | £6,443 | £5,972 | £0 | £43 | £184 | -£673 |
Rent by the room upside
What we verified
4217
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining64 yr
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
Service chargeReduces net yield£1,260/yr
Ground rentDoubling clauses kill mortgageability£424/yr
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£1,194
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£673
Acquisition costs
25% deposit£30,625
Stamp duty£6,125
Refurb£6,417
Legal + survey£2,000
Mortgage + broker£2,838
Cash needed£48,005
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 An ideal opportunity for first-time buyers or investors, this beautifully presented ground-floor one-bedroom apartment is set within a quiet residential development in Kern Close, Southampton.
Description The home opens into a welcoming entrance hall that provides useful built-in storage. The bright and cozy reception room is finished with neutral decor and soft carpeted flooring, featuring a large double-glazed window that floods the room with natural light. An open…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice