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Year 5 disposal
BMV -7%
⊞ View all 14
28/ 100
Weak
7.02% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 7.02% return before costs — above-market
- Priced below market -7% vs 12 nearby sold (last 12 mo) — instant equity
- Long lease (116 yrs) — no short-lease drag
- EPC C — MEES compliant
Why to be cautious
- Monthly profit −£252/mo — significantly negative — real recurring drain
- -3.2% 5y IRR — capital outlay disproportionate to returns
Property research tool — not a regulated financial service. Numbers are point-in-time estimates; how we decide →
Monthly cashflow
−£252/mo
You top up £252/mo
Price vs market
Below market value
-7% vs 12 sold · interior unseen
Return · IRR
-3.2%/yr
Loses money over 5 years
Cash left in
£75K
Stays in after refinancing at value
Price £235KCash to buy £89KReturn before costs on price 7.02%5-yr return on cash -10%Rent est. £1,374 (£1,299–£1,453)
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: £1,299–£1,453/mo · n=115
Financing
DepositYour cash in — the rest is the mortgage25% · £58,750
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 (£7,487–£13,975 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £176,250 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)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£252
after mortgage, operating costs & tax
Rent in£1,374/mo gross
£1,321/mo collected · £53/mo lost to voids
Where it goes
£955Mortgage£619Costs
Outgoings exceed rent — you top up £252/mo
Mortgage£955
Costs£619
Management£137
Maintenance£67
Insurance£28
CapEx reserve£69
Voids + council tax£8
Service charge + ground rent£192
Ltd co. accounts£104
Selective licensing£14
Tax—
Shortfall−£252
Returns
Return before costs on price7.02%
Cash return on cash-3.39%
Gross margin£702
Cash needed£89,207
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.38
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 | £16,488 | £7,425 | £11,456 | £0 | £0 | -£2,393 | -£2,393 |
| Year 2 | £16,983 | £7,648 | £11,456 | £0 | £0 | -£2,122 | -£4,515 |
| Year 3 | £17,492 | £7,877 | £11,456 | £0 | £0 | -£1,842 | -£6,357 |
| Year 4 | £18,017 | £8,114 | £11,456 | £0 | £0 | -£1,553 | -£7,910 |
| Year 5 | £18,557 | £8,357 | £11,456 | £0 | £0 | -£1,256 | -£9,166 |
Disposal gain (gross)-£7,959
CGT£0
Net Disposal proceeds£252,973
What we verified
What we verified
51055 ok · 1 caution · 0 fail · 5 unknown
Legal & planning
Leasehold116 yr
Leaseholdmaterial factsListing extract
Lease remaining
Mortgageable ≥80yr
116 yr
Ground rent
Doubling = lender risk
£300/yr
Extracted from listing description · verify with solicitor
Tenure & planning116 yr
Legal & planning
2 checks- TenureUnknown
- Lease lengthUnknown
Building condition
Energy ratingC
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
From listing descriptionBand C
MEES 2030 compliance
C required for new tenancies
PASS
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 cohortRM1 3FD · 1 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
Queen Mary · 16.7 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 · 735 sqft · London ×1.4
£26k–£51k
£ per sqft
building cost only
£36–£70
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£4,640–£10,440
- 1 × bathroom · Full strip + retile£4,200–£8,400
- Paint + decor£7,350–£13,230
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£10,290–£19,110
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 history98d on marketno cuts yet
Sale price historythis address, HM Land RegistryPrice-Paid Data
Asking vs last sale
£275,000 in 2016 → £235,000 asking
-14.5%in 10y
- 2016£275,000—
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 — -£192/mo · £46/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 | 7.02% | -£252 | £89,207 | -10.3% | Low | Feasible |
| Housing-benefit rent | 5.09% | -£620 | £89,207 | -34.8% | Med | Feasible |
| ⭐ Council lease | 7.02% | -£192 | £89,207 | -9.7% | Low | Feasible |
| Refurb & refinance | 7.02% | -£238 | £104,950 | -7.9% | Med | Feasible |
| Short-stay let / Airbnb | 6.61% | -£654 | £89,207 | -42.5% | High | Feasible |
| Buy, improve & sell | 0.00% | -£391 | £264,925 | 5% | Med | Feasible |
| Rent by the room | — | — | — | — | — | Disabledneeds 3+ beds |
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Outer North East London · cap £997/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Outer North East London
- LHA monthly cap:
- £997
- 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
Local lettings demandby strategyLive area data
Short-stay let25% occupancy
£173/night ADR
Based on 3 short-let comps nearby
Rent by the room conversion upside
+£83/mo cash flow vs Rent it out if converted to Rent by the room
12.26% Return before costs on price converted vs 7.02% as-is
As-is Rent it out
Monthly profit-£6
Return before costs on price7.02%
Cash needed£70,648
If converted to Rent by the room
Monthly profit+£77
Return before costs on price12.26%
Cash needed£86,648
Δ vs Rent it out Monthly profit+£83
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.
Comparables
sold within 0.5 miWide · CV 24.0%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment1 school nearby
Nearby schoolsOfsted-rated, nearest first1 of 5
- Not ratedBep AcademyNot applicable · Other independent school · RM1 3LP
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£16,488
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£3,028
Exit costs
Projected sale price (5y · 2%/yr growth)£259,459
Capital gain (pre-CGT)£24,459
Sale costs (~2.5%)£6,486
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-£9,166
Rates as of Oct 2024
Acquisition costs
£89,207cash neededPurchase price£235,000
Deposit (25%)£58,750
Stamp duty+5% additional-property surcharge£13,950
Refurb£9,982
Legal + survey£2,000
Mortgage fees£4,525
Total cash neededdeposit + costs (loan covers the rest)£89,207
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
OFFERS OVER £240,000
Located in the heart of the town centre, this beautifully presented two bedroom apartment offers modern living with unbeatable convenience. Situated on the first floor of a well-maintained development, the property features an open-plan kitchen and living area, perfect for both relaxing and entertaining. The property benefits from a video entry system, lift access and a concierge service for added security and convenience. Enjoy easy access to everyth…
Floor plans
Nearby active comparables18 rentals
Comparable rentals
RM1 · same beds + typeMedian nearby: £1,463/mo · 11 of 18 already let+£89 vs our est
- The Maltings, Romford, RM1Let1b£1,500/moMay 2026
- The Maltings, Romford, RM1Let1b£1,500/moMay 2026
- Mercury Gardens, Romford1b£1,500/moMay 2026
- Eastern Road, Romford, RM1Let1b£1,600/moMay 2026
- Steelway Apartments, a South Street,…Let1b£1,400/moMay 2026
- Nayland Court, Market Place, Romford,…1b£1,425/moMay 2026
- The Gatehouse, High Street, Romford,…1b£1,500/moMay 2026
- Rushdon Close, Romford, RM11b£1,250/moMay 2026
- South Street, Romford, RM11b£1,550/moMay 2026
- St Georges Court, George Street Romfo…Let1b£1,350/moMay 2026
- Eastern Avenue East, Romford, London,…1b£1,250/moMay 2026
- Flat , Southmill Court, a South Stree…Let1b£1,350/moMay 2026
- Flat , Southmill Court, a South Stree…Let1b£1,350/moMay 2026
- Flat , Southmill Court, a South Stree…Let1b£1,350/moMay 2026
- Scimitar House, 23 Eastern Road Romfo…Let1b£1,600/moMay 2026
- Eastern Road, Romford, RM1Let1b£1,600/moMay 2026
- North Street, RomfordLet1b£1,500/moMay 2026
- 363 South Street, Romford, RM11b£1,250/moJun 2025
Other deals nearby
RM1 · ±25% priceNo other nearby investment deals matched on postcode prefix + bedrooms.
Listing metarightmove · YOUR MOVE Stewart & Co
About this listing
98 days · RightmovePrice history
5-year price trend
Monthly profit
−£252
Cash needed
£89K
Return after costs
-3.39%
IRR
-3.24%
Listed 98d ago
Mercury Gardens, Romford, RM1
flat · 1 bed · 1 bath
£235,000
est £1,374 · 7.02% gross
Leasehold 116yrEPC C
Priced below market
1 / 14
28/100
Marginal
7.02% — verify the rent + comps locally.
Priced below market -7% vs 12 nearby sold (last 12 mo)
7.02% Return before costs — above-market
Price
£235K
7% below sold comps
Return before costs
7.02%
est rent £1,374/mo115 comps within 1 kmRange £1,299–£1,453/mo (Q1–Q3)
Bedrooms
1
1 bath
Energy rating
C
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: £1,299–£1,453/mo · n=115
Financing
DepositYour cash in — the rest is the mortgage25% · £58,750
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 (£7,487–£13,975 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £176,250 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)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
-£252
after mortgage, operating costs & tax
Rent in£1,374/mo gross
£1,321/mo collected · £53/mo lost to voids
Where it goes
£955Mortgage£619Costs
Outgoings exceed rent — you top up £252/mo
Mortgage£955
Costs£619
Management£137
Maintenance£67
Insurance£28
CapEx reserve£69
Voids + council tax£8
Service charge + ground rent£192
Ltd co. accounts£104
Selective licensing£14
Tax—
Shortfall−£252
Returns
Return before costs on price7.02%
Cash return on cash-3.39%
Gross margin£702
Cash needed£89,207
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.38
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Short-let (SA) context243 active short-lets nearby
Short-let market context
- 243 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Outer North East London · cap £997/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Outer North East London
- LHA monthly cap:
- £997
- 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 | £16,488 | £7,425 | £11,456 | £0 | £0 | -£2,393 | -£2,393 |
| Year 2 | £16,983 | £7,648 | £11,456 | £0 | £0 | -£2,122 | -£4,515 |
| Year 3 | £17,492 | £7,877 | £11,456 | £0 | £0 | -£1,842 | -£6,357 |
| Year 4 | £18,017 | £8,114 | £11,456 | £0 | £0 | -£1,553 | -£7,910 |
| Year 5 | £18,557 | £8,357 | £11,456 | £0 | £0 | -£1,256 | -£9,166 |
Rent by the room upside
What we verified
6206
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedN/A
TenureLeasehold years remaining116 yr
HeritageListed building / conservation areaNot stated on the listing
Building condition▾
EPCEnergy efficiency ratingC
EWS1External wall safety (cladding)Not stated on the listing
Refurb costBased on beds + baths + sqftEstimate available
Service chargeReduces net yield£2,000/yr
Ground rentDoubling clauses kill mortgageability£300/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 miWide · CV 24.0%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,291
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£9,166
Acquisition costs
25% deposit£58,750
Stamp duty£13,950
Refurb£9,982
Legal + survey£2,000
Mortgage + broker£4,525
Cash needed£89,207
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
OFFERS OVER £240,000
Located in the heart of the town centre, this beautifully presented two bedroom apartment offers modern living with unbeatable convenience. Situated on the first floor of a well-maintained development, the property features an open-plan kitchen and living area, perfect for both relaxing and entertaining. The property benefits from a video entry system, lift access and a concierge service for added security and convenience. Enjoy easy access to everyth…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice