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Year 5 disposal
BMV -54%
⊞ View all 7
20/ 100
Weak
14.53% Rent by the room return before costs — verify the rent + comps locally.
Why it works
- 9.94% return before costs — above-market
- 14.5% Rent by the room return before costs (net 7.48% after CapEx + bills) — conversion play
- Priced below market -54% vs 12 nearby sold (last 12 mo) — instant equity
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- Lease 48 yrs — mortgageability risk
- Service charge unknown — could swing £100-300/mo
- Monthly profit −£33/mo — mildly negative — equity build may cover
- 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
−£33/mo
You top up £33/mo
Price vs market
Below market value
-54% vs 12 sold · interior unseen
Return · IRR
0.3%/yr
Modest annualised return
Cash left in
£0
Fully recycled — pull all your cash back out
Price £140KCash to buy £105KReturn before costs on price · Rent by the room 14.53%5-yr return on cash 2%Rent est. £1,160 (£1,053–£1,278)
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: £1,053–£1,278/mo · n=11
Financing
DepositYour cash in — the rest is the mortgage25% · £35,000
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 (£43,548–£81,290 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £105,000 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 sub-£200K
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£33
after mortgage, operating costs & tax
Rent in£1,160/mo gross
£1,115/mo collected · £45/mo lost to voids
Where it goes
£569Mortgage£580Costs
Outgoings exceed rent — you top up £33/mo
Mortgage£569
Costs£580
Management£116
Maintenance£100
Insurance£20
CapEx reserve£58
Voids + council tax£6
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£33
Returns
Return before costs on price9.94%
Cash return on cash-0.37%
Gross margin£536
Cash needed£105,464
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.96
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 | £13,920 | £6,954 | £6,825 | £0 | £27 | £114 | £114 |
| Year 2 | £14,338 | £7,163 | £6,825 | £0 | £66 | £284 | £398 |
| Year 3 | £14,768 | £7,377 | £6,825 | £0 | £107 | £458 | £856 |
| Year 4 | £15,211 | £7,599 | £6,825 | £0 | £150 | £637 | £1,493 |
| Year 5 | £15,667 | £7,827 | £6,825 | £0 | £193 | £822 | £2,315 |
Disposal gain (gross)-£56,657
CGT£0
Net Disposal proceeds£150,707
What we verified
What we verified
30273 ok · 0 caution · 2 fail · 7 unknown
Legal & planning
Leasehold48 yr
Leaseholdmaterial factsListing extract
Lease remaining
Mortgageable ≥80yr
48 yr
Short lease — 48 years remaining
Most BTL lenders refuse leases under 80 years. Statutory lease extension typically costs £8k–£20k+ and adds 3–6 months to completion.
Extracted from listing description · verify with solicitor
Tenure & planning48 yr
Legal & planning
2 checks- TenureUnknown
- Lease lengthUnknown
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
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 cohortDE24 3DA · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
University of Nottingham · 21.4 km
Reason
3-bed house in a suburban area — family-let demand dominates; check local school catchment ratings.
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
3-bed · 1-bath · 990 sqft
£25k–£49k
£ per sqft
building cost only
£25–£49
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 1 × bathroom · Full strip + retile£3,325–£6,650
- Paint + decor£6,930–£12,870
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£10,890–£20,790
Guide rates · UK May 2026 · sqft auto-estimated from beds
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 history94d on marketno cuts yet
Strategy matrix
Rent it out wins — -£33/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 | 9.94% | -£33 | £105,464 | 2.2% | Low | Feasible |
| Housing-benefit rent | 5.98% | -£455 | £105,464 | -22.2% | Med | Feasible |
| Council lease | 5.98% | -£305 | £105,464 | -16.4% | Low | Feasible |
| Refurb & refinance | 9.94% | -£33 | £135,690 | 1.7% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£399 | £230,590 | -27% | Med | Feasible |
| Rent by the room | 14.53% | -£869 | £131,464 | -34.1% | — | Feasible |
Housing-benefit (LHA) scheme detailBRMA Derby · cap £698/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Derby
- LHA monthly cap:
- £698
- Scheme type:
- other
- 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
+£222/mo cash flow vs Rent it out if converted to Rent by the room
20.57% Return before costs on price converted vs 9.94% as-is
🔓 +1 bedroom potential
medium confidenceUnlocks ~£6,780/yr extra rent
3 → 4 lettable rooms · ~8.9% gross at max
Potential, not guaranteed (subject to planning + regs). Estimate from the floorplan (kitchen size assumed) — verify room sizes against the floorplan before offering.
How we calculated this
floorplan shows 5 habitable rooms (3 beds + 2 reception(s)) in 76 m²; convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 4 lettable rooms; sized to South Derbyshire adopted standard (6.51/10.22 m²; House in multiple occupation (HMO) pages (how to apply, ch.3); Fees and Charges - Housing 2025/26 & 2026/27); adds ~£565/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted)
🔒 Room-add markup · Pro
Pro members see the floorplan with every convertible room outlined in green. Verify room sizes before offering.
3 → 4 bed HMOuplift 9.94% → 8.95%
Projections use documented assumptions (local room rates, typical conversion costs, 75% LTV at 5.5%, indicative regional valuation yields) and each council’s published HMO standards. Not financial advice. Verify room sizes, licensing and planning with the council and a surveyor before purchase.
Room mix (3 lettable rooms)
1× Double @ £574/mo1× Single @ £567/mo1× En-suite @ £554/mo
≈ £1,695/mo gross room income
As-is Rent it out
Monthly profit+£155
Return before costs on price9.94%
Cash needed£46,898
If converted to Rent by the room
Monthly profit+£377
Return before costs on price20.57%
Cash needed£62,898
Δ vs Rent it out Monthly profit+£222
+1 room (4 total)
Monthly profit+£295
Return before costs on price19.37%
Cash needed£72,898
Extra rent+£565/mo
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£44,691–£84,000full refurb + room split
⚠️ Capped at 60% of £140,000 asking (£84,000). Raw model: £48,990–£92,080. Verify with a surveyor before offering.
What's in this cost
- Kitchen£7,882–£15,764
- 1 × bathroom£5,200–£9,533
- Rewire£3,613–£6,322
- Replumb£2,709–£5,419
- Windows£9,031–£16,256
- Paint + decor£6,322–£11,741
- Flooring£9,934–£18,966
Based on 2323 HMO comps within 4.7 km
Comparables
sold within 0.5 miWide · CV 18.3%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Schools & catchment3 schools nearby
Nearby schoolsOfsted-rated, nearest first3 of 5
- GoodAsh Croft Primary AcademyPrimary · Academy converter · DE24 3HF
- GoodStenson Fields Primary Community SchoolPrimary · Community school · DE24 3BW
- Requires improvementCity of Derby AcademySecondary · Academy sponsor led · DE24 3AR
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£13,920
Section 24 credit£0
Annual tax due£27
Post-tax Monthly profit annual-£421
Exit costs
Projected sale price (5y · 2%/yr growth)£154,571
Capital gain (pre-CGT)£14,571
Sale costs (~2.5%)£3,864
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£2,315
Rates as of Oct 2024
Acquisition costs
£105,464cash neededPurchase price£140,000
Deposit (25%)£35,000
Stamp duty+5% additional-property surcharge£7,300
Refurb£58,064
Legal + survey£2,000
Mortgage fees£3,100
Total cash neededdeposit + costs (loan covers the rest)£105,464
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
* INVESTMENT OPPORTUNITY * LINK DETACHED PROPERTY REQUIRING MODERNISATION * In brief the property offers a hall, lounge, kitchen, three bedrooms, bathroom, garden, drive & garage. This property is leasehold with 48 years remaining.
Hall - Entranced door into the hall with stairs to the first floor.
Lounge - Windows to the front and rear, radiator.
Kitchen - Fitted units, sink unit, windows to the rear and side, door onto the garden.
First Floor Landing - Doors to -
Bedro…
Floor plans
Listing metarightmove · Abode
About this listing
94 days · RightmovePrice history
5-year price trend
Monthly profit
−£33
Cash needed
£105K
Return after costs
-0.37%
IRR
0.35%
Listed 94d ago
Outram Way, Stenson Fields, Derby
detached · 3 bed · 1 bath
£140,000
est £1,160 · 9.94% gross
Leasehold 48yr
Priced below market
1 / 7
20/100
Marginal
14.53% — verify the rent + comps locally.
Priced below market -54% vs 12 nearby sold (last 12 mo)
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
9.94% Return before costs — above-market
14.5% Rent by the room Return before costs — conversion play
Lease 48 yrs — mortgage risk
Price
£140K
54% below sold comps
Return before costs (best)
14.53%
Rent by the room
Bedrooms
3
1 bath
Energy rating
—
Energy rating
Deal flags1 issue
Short lease — 48 yrs
Most lenders refuse below 60 yrs; extension cost likely £20k+
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: £1,053–£1,278/mo · n=11
Financing
DepositYour cash in — the rest is the mortgage25% · £35,000
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 (£43,548–£81,290 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £105,000 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 sub-£200K
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£33
after mortgage, operating costs & tax
Rent in£1,160/mo gross
£1,115/mo collected · £45/mo lost to voids
Where it goes
£569Mortgage£580Costs
Outgoings exceed rent — you top up £33/mo
Mortgage£569
Costs£580
Management£116
Maintenance£100
Insurance£20
CapEx reserve£58
Voids + council tax£6
Service charge + ground rent£175
Ltd co. accounts£104
Tax—
Shortfall−£33
Returns
Return before costs on price9.94%
Cash return on cash-0.37%
Gross margin£536
Cash needed£105,464
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.96
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Derby · cap £698/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Derby
- LHA monthly cap:
- £698
- Scheme type:
- other
- 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 | £13,920 | £6,954 | £6,825 | £0 | £27 | £114 | £114 |
| Year 2 | £14,338 | £7,163 | £6,825 | £0 | £66 | £284 | £398 |
| Year 3 | £14,768 | £7,377 | £6,825 | £0 | £107 | £458 | £856 |
| Year 4 | £15,211 | £7,599 | £6,825 | £0 | £150 | £637 | £1,493 |
| Year 5 | £15,667 | £7,827 | £6,825 | £0 | £193 | £822 | £2,315 |
Rent by the room upside
What we verified
4017
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
TenureLeasehold years remaining48 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
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 miWide · CV 18.3%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,365
Annual rental tax£0
CGT yr 5£0 · company level
5y net total£2,315
Acquisition costs
25% deposit£35,000
Stamp duty£7,300
Refurb£58,064
Legal + survey£2,000
Mortgage + broker£3,100
Cash needed£105,464
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
* INVESTMENT OPPORTUNITY * LINK DETACHED PROPERTY REQUIRING MODERNISATION * In brief the property offers a hall, lounge, kitchen, three bedrooms, bathroom, garden, drive & garage. This property is leasehold with 48 years remaining.
Hall - Entranced door into the hall with stairs to the first floor.
Lounge - Windows to the front and rear, radiator.
Kitchen - Fitted units, sink unit, windows to the rear and side, door onto the garden.
First Floor Landing - Doors to -
Bedro…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice