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Year 5 disposal
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55/ 100
Caution
11.31% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 11.31% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- Service charge unknown — could swing £100-300/mo
- Monthly profit −£38/mo — mildly negative — equity build may cover
- -1.1% 5y IRR — capital outlay disproportionate to returns
- EPC band not stated — verify the certificate before offering (2030 MEES minimum is band C).
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£38/mo
You top up £38/mo
Price
£90K
No local sold comps to compare
Return · IRR
-1.1%/yr
Loses money over 5 years
Cash to get in
£42K
Deposit + fees + refurb
Return before costs on price 11.31%5-yr return on cash 2%Rent est. £848 (£806–£892)
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: £806–£892/mo · n=88
Financing
DepositYour cash in — the rest is the mortgage25% · £22,500
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 (£7,710–£14,392 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £67,500 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 sub-£200K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£38
after mortgage, operating costs & tax
Rent in£848/mo gross
£815/mo collected · £33/mo lost to voids
Where it goes
£366Mortgage£488Costs
Outgoings exceed rent — you top up £38/mo
Mortgage£366
Costs£488
Management£85
Maintenance£67
Insurance£20
CapEx reserve£42
Voids + council tax£6
Service charge + ground rent£163
Ltd co. accounts£104
Tax—
Shortfall−£38
Returns
Return before costs on price11.31%
Cash return on cash-1.09%
Gross margin£328
Cash needed£41,630
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.23
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 | £10,176 | £5,851 | £4,388 | £0 | £0 | -£62 | -£62 |
| Year 2 | £10,481 | £6,026 | £4,388 | £0 | £13 | £54 | -£8 |
| Year 3 | £10,796 | £6,207 | £4,388 | £0 | £38 | £163 | £155 |
| Year 4 | £11,120 | £6,393 | £4,388 | £0 | £64 | £275 | £430 |
| Year 5 | £11,453 | £6,585 | £4,388 | £0 | £91 | £389 | £819 |
Disposal gain (gross)-£9,897
CGT£0
Net Disposal proceeds£96,883
What we verified
What we verified
23062 ok · 3 caution · 0 fail · 6 unknown
Legal & planning
LeaseholdLeasehold
Tenure & planningLeasehold
Legal & planning
2 checks- TenureUnknown
- 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 cohortDE21 4TR · 2 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University of Nottingham · 18.4 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 · 661 sqft
£22k–£44k
£ per sqft
building cost only
£34–£67
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£4,627–£8,593
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£7,271–£13,881
Guide rates · UK May 2026
Tier-based bands — get a builder quote before exchanging.
Rent by the room licensingN/A
Price & sale history102d on marketno cuts yet
Sale price historythis address, HM Land RegistryPrice-Paid Data
Asking vs last sale
£130,000 in 2008 → £90,000 asking
-30.8%in 18y
- 2008£130,000—
HM Land Registry · Price-Paid Data (Open Government Licence). Growth percentages are nominal — not adjusted for inflation or local market movement.
Strategy matrix
Council lease wins — +£69/mo · £107/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 | 11.31% | -£38 | £41,630 | 2.0% | Low | Feasible |
| Housing-benefit rent | 7.91% | -£286 | £41,630 | -33.5% | Med | Feasible |
| ⭐ Council lease | 11.31% | +£69 | £41,630 | 13.3% | Low | Feasible |
| Refurb & refinance | 11.31% | -£38 | £50,242 | 1.6% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£354 | £110,892 | -3% | 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
+£427/mo cash flow vs Rent it out if converted to Rent by the room
32.00% Return before costs on price converted vs 11.31% as-is
As-is Rent it out
Monthly profit+£108
Return before costs on price11.31%
Cash needed£34,398
If converted to Rent by the room
Monthly profit+£536
Return before costs on price32.00%
Cash needed£50,398
Δ vs Rent it out Monthly profit+£427
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
£28,732–£54,000full refurb + room split
⚠️ Capped at 60% of £90,000 asking (£54,000). Raw model: £43,175–£81,145. Verify with a surveyor before offering.
What's in this cost
- Kitchen£5,750–£11,499
- 2 × bathroom£7,586–£13,908
- Rewire£1,760–£3,079
- Replumb£1,320–£2,639
- Windows£4,399–£7,918
- Paint + decor£3,079–£5,718
- Flooring£4,839–£9,237
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
- GoodBreadsall Hill Top Primary SchoolPrimary · Academy sponsor led · DE21 4ET
- GoodCavendish Close Junior AcademyPrimary · Academy sponsor led · DE21 4RJ
- GoodRoe Farm Primary SchoolPrimary · Community school · DE21 4HG
- Not ratedSt Andrew's AcademyNot applicable · Academy special converter · DE21 4EW
- Not ratedCavendish Close Infant SchoolPrimary · Community school · DE21 4LY
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£10,176
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£454
Exit costs
Projected sale price (5y · 2%/yr growth)£99,367
Capital gain (pre-CGT)£9,367
Sale costs (~2.5%)£2,484
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£819
Rates as of Oct 2024
Acquisition costs
£41,630cash neededPurchase price£90,000
Deposit (25%)£22,500
Stamp duty+5% additional-property surcharge£4,500
Refurb£10,280
Legal + survey£2,000
Mortgage fees£2,350
Total cash neededdeposit + costs (loan covers the rest)£41,630
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
Located within the popular Magnus Court development in the sought-after Darley Abbey area of Derby, this attractive two-bedroom apartment offers spacious and well-appointed accommodation, ideal for first-time buyers, professionals, downsizers, or investors.
The property comprises a bright and airy living/dining room, a fitted kitchen with ample storage, two generously proportioned bedrooms, and a modern family bathroom. The principal bedroom benefits from a private en-suite…
Floor plans
Listing metarightmove · Leaders Sales
About this listing
102 days · RightmovePrice history
5-year price trend
Monthly profit
−£38
Cash needed
£42K
Return after costs
-1.09%
IRR
-1.05%
Listed 102d ago
Magnus Court, Derby, Derbyshire
flat · 2 bed · 2 bath · 661 sqft
£90,000
est £848 · 11.31% gross
1 / 9
55/100
Caution
11.31% — verify the rent + comps locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
11.31% Return before costs — above-market
Price
£90K
Return before costs
11.31%
est rent £848/mo88 comps within 1.5 kmRange £806–£892/mo (Q1–Q3)
Bedrooms
2
2 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: £806–£892/mo · n=88
Financing
DepositYour cash in — the rest is the mortgage25% · £22,500
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 (£7,710–£14,392 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £67,500 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 sub-£200K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£38
after mortgage, operating costs & tax
Rent in£848/mo gross
£815/mo collected · £33/mo lost to voids
Where it goes
£366Mortgage£488Costs
Outgoings exceed rent — you top up £38/mo
Mortgage£366
Costs£488
Management£85
Maintenance£67
Insurance£20
CapEx reserve£42
Voids + council tax£6
Service charge + ground rent£163
Ltd co. accounts£104
Tax—
Shortfall−£38
Returns
Return before costs on price11.31%
Cash return on cash-1.09%
Gross margin£328
Cash needed£41,630
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.23
Rent-covers-mortgage check PASS · stress 6.5% (target 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 | £10,176 | £5,851 | £4,388 | £0 | £0 | -£62 | -£62 |
| Year 2 | £10,481 | £6,026 | £4,388 | £0 | £13 | £54 | -£8 |
| Year 3 | £10,796 | £6,207 | £4,388 | £0 | £38 | £163 | £155 |
| Year 4 | £11,120 | £6,393 | £4,388 | £0 | £64 | £275 | £430 |
| Year 5 | £11,453 | £6,585 | £4,388 | £0 | £91 | £389 | £819 |
Rent by the room upside
What we verified
3307
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureTenure typeLeasehold
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
Ground rentDoubling clauses kill mortgageability£150/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£878
Annual rental tax£0
CGT yr 5£0 · company level
5y net total£819
Acquisition costs
25% deposit£22,500
Stamp duty£4,500
Refurb£10,280
Legal + survey£2,000
Mortgage + broker£2,350
Cash needed£41,630
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 copyRightmove
Located within the popular Magnus Court development in the sought-after Darley Abbey area of Derby, this attractive two-bedroom apartment offers spacious and well-appointed accommodation, ideal for first-time buyers, professionals, downsizers, or investors.
The property comprises a bright and airy living/dining room, a fitted kitchen with ample storage, two generously proportioned bedrooms, and a modern family bathroom. The principal bedroom benefits from a private en-suite…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice