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Year 5 disposal
84/ 100
Strong
15.87% Rent by the room return before costs — market rent unverified, verify rent + comps locally.
Why it works
- 9.70% return before costs — above-market
- 15.9% Rent by the room return before costs (net 8.07% after CapEx + bills) — conversion play
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- 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
+£134/mo
Barely breaks even each month
Price
£130K
No local sold comps to compare
Return · IRR
3.2%/yr
Modest annualised return
Cash to get in
£61K
Deposit + fees + refurb
Return before costs on price · Rent by the room 15.87%5-yr return on cash 20%Rent est. £1,051 (£901–£1,226)
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
Buy-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: £901–£1,226/mo · n=89
Financing
DepositYour cash in — the rest is the mortgage25% · £32,500
Standard 75% LTV for BTL
Mortgage rate5y fixed5.5%
5-year fixed (market average) — 5.50% (as of 2026-05).
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 (£13,223–£24,682 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £97,500 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
+£134
after mortgage, operating costs & tax
Rent in£1,051/mo gross
£1,011/mo collected · £40/mo lost to voids
Where it goes
£508Mortgage£337Costs
£134/mo left as profit · 13% of rent kept
Mortgage£508
Costs£337
Management£105
Maintenance£50
Insurance£20
CapEx reserve£53
Voids + council tax£5
Ltd co. accounts£104
Tax£32
Profit+£134
Returns
Return before costs on price9.70%
Cash return on cash2.63%
Gross margin£674
Cash needed£61,380
Monthly profit payback38y 1m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.91
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 | £12,612 | £4,040 | £6,094 | £0 | £471 | £2,007 | £2,007 |
| Year 2 | £12,990 | £4,162 | £6,094 | £0 | £520 | £2,215 | £4,222 |
| Year 3 | £13,380 | £4,286 | £6,094 | £0 | £570 | £2,430 | £6,652 |
| Year 4 | £13,781 | £4,415 | £6,094 | £0 | £622 | £2,651 | £9,303 |
| Year 5 | £14,195 | £4,547 | £6,094 | £0 | £675 | £2,879 | £12,182 |
Disposal gain (gross)-£15,988
CGT£0
Net Disposal proceeds£139,942
What we verified
What we verified
40074 ok · 0 caution · 0 fail · 7 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
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
HeritageNot stated on the listing
Area
Flood riskNo location
Crime riskNo location
SchoolsNo postcode
Investor
Tenant profileUnknown
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
Price & sale history89d on marketno cuts yet
Strategy matrix
Rent it out wins — +£134/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 | 9.70% | +£134 | £61,380 | 19.8% | Low | Feasible |
| Housing-benefit rent | 5.47% | -£245 | £61,380 | -17.6% | Med | Feasible |
| Council lease | 0.00% | -£682 | £61,380 | -67.7% | Low | Feasible |
| Refurb & refinance | 9.70% | +£134 | £74,932 | 16.3% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£174 | £162,982 | -3% | Med | Feasible |
| Rent by the room | 15.87% | -£555 | £79,750 | -31.4% | — | Feasible |
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
+£294/mo cash flow vs Rent it out if converted to Rent by the room
22.15% Return before costs on price converted vs 9.70% as-is
£130k → 4-bed HMO @ ~£539/room: £2,152 pcm gross, ~£1,232 pcm net (9.9% net on £149k all-in incl. ~£10k works)
medium confidence
Unlocks ~£6,876/yr extra rent
3 → 4 lettable rooms
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 (1 double, 0 single); sized to Wigan adopted standard (6.51/10.22 m²; Wigan Council HMO Licensing Standards v1.1, June 2025); kitchen 6.5 m² is below the ~7.0 m² standard for 4 occupants — extend/relocate kitchen within the works; adds ~£573/mo; loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); Article 4 — planning permission needed
🔒 Room-add markup · Pro
Pro members see the floorplan with every convertible room outlined in green. Verify room sizes before offering.
3 → 4 bed HMO+1 double
Sized to Wigan's adopted HMO standards
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)
2× Double @ £564/mo1× En-suite @ £591/mo
≈ £1,719/mo gross room income
As-is Rent it out
Monthly profit+£115
Return before costs on price9.70%
Cash needed£44,398
If converted to Rent by the room
Monthly profit+£409
Return before costs on price22.15%
Cash needed£60,398
Δ vs Rent it out Monthly profit+£294
+1 room (4 total)
Monthly profit+£346
Return before costs on price21.16%
Cash needed£70,398
Extra rent+£573/mo
Show conversion detail
Conversion cost estimate
£48,000
Range: £42,000 – £56,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Uncertain · 38% 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 34% (41 decisions)
≈0.0% within 100 m vs 10% policy
Council HMO policy not curated — assessed against a 10% / 100 m default; a low/absent count reflects register coverage, not zero nearby HMOs.
£41,499–£78,000full refurb + room split
⚠️ Capped at 60% of £130,000 asking (£78,000). Raw model: £48,990–£92,080. Verify with a surveyor before offering.
What's in this cost
- Kitchen£7,319–£14,638
- 1 × bathroom£4,828–£8,852
- Rewire£3,354–£5,870
- Replumb£2,516–£5,032
- Windows£8,386–£15,095
- Paint + decor£5,870–£10,902
- Flooring£9,225–£17,611
Based on 164 HMO comps within 231 m
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
No coordinates available — verify address with the agent.
Transport score100 / 100
Wigan City-wide HMO Article 4
≈0.0% within 100 m vs 10% policy
Council HMO policy not curated — assessed against a 10% / 100 m default; a low/absent count reflects register coverage, not zero nearby HMOs.
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- GoodBeech Hill Community Primary SchoolPrimary · Community school · WN6 7PT
- Requires improvementWigan St Andrew's CofE Junior and Infant SchoolPrimary · Voluntary aided school · WN6 7AU
- Not ratedSacred Heart Catholic Primary SchoolPrimary · Voluntary aided school · WN6 7RH
- Not ratedSt John Fisher Catholic High SchoolSecondary · Voluntary aided school · WN6 7RN
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£12,612
Section 24 credit£0
Annual tax due£471
Post-tax Monthly profit annual£1,522
Exit costs
Projected sale price (5y · 2%/yr growth)£143,531
Capital gain (pre-CGT)£13,531
Sale costs (~2.5%)£3,588
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£12,182
Rates as of Oct 2024
Acquisition costs
£61,380cash neededPurchase price£130,000
Deposit (25%)£32,500
Stamp duty+5% additional-property surcharge£6,600
Refurb£17,630
Legal + survey£1,700
Mortgage fees£2,950
Total cash neededdeposit + costs (loan covers the rest)£61,380
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
The Property Situated in a popular residential location, this well-presented mid-terrace family home offers spacious and well-proportioned accommodation throughout, making it an ideal purchase for first-time buyers, growing families or buy-to-let investors.
The property is entered via a welcoming entrance porch, providing a practical space for coats and shoes before leading into the main living accommodation. The bright and comfortable lounge is positioned to the front of th…
Listing metarightmove · Purplebricks
About this listing
89 days · RightmovePrice history
No price history available.
Monthly profit
+£134
Cash needed
£61K
Return after costs
2.63%
IRR
3.16%
Listed 89d ago
3 bedroom terraced house for sale
terraced · 3 bed · 1 bath
£130,000
est £1,051 · 9.70% gross
84/100
Strong
15.87% Rent by the room strategy — market rent unverified, verify locally.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
9.70% Return before costs — above-market
15.9% Rent by the room Return before costs — conversion play
Price
£130K
Return before costs (best)
15.87%
Rent by the room
Bedrooms
3
1 bath
Energy rating
—
Energy rating
Run the numbers
What-if calculator
Buy-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: £901–£1,226/mo · n=89
Financing
DepositYour cash in — the rest is the mortgage25% · £32,500
Standard 75% LTV for BTL
Mortgage rate5y fixed5.5%
5-year fixed (market average) — 5.50% (as of 2026-05).
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 (£13,223–£24,682 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £97,500 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)
Terraced: £50/mo proxy (shared structure)
Leasehold costs
Result · Rent it out
Monthly profit
+£134
after mortgage, operating costs & tax
Rent in£1,051/mo gross
£1,011/mo collected · £40/mo lost to voids
Where it goes
£508Mortgage£337Costs
£134/mo left as profit · 13% of rent kept
Mortgage£508
Costs£337
Management£105
Maintenance£50
Insurance£20
CapEx reserve£53
Voids + council tax£5
Ltd co. accounts£104
Tax£32
Profit+£134
Returns
Return before costs on price9.70%
Cash return on cash2.63%
Gross margin£674
Cash needed£61,380
Monthly profit payback38y 1m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.91
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 | £12,612 | £4,040 | £6,094 | £0 | £471 | £2,007 | £2,007 |
| Year 2 | £12,990 | £4,162 | £6,094 | £0 | £520 | £2,215 | £4,222 |
| Year 3 | £13,380 | £4,286 | £6,094 | £0 | £570 | £2,430 | £6,652 |
| Year 4 | £13,781 | £4,415 | £6,094 | £0 | £622 | £2,651 | £9,303 |
| Year 5 | £14,195 | £4,547 | £6,094 | £0 | £675 | £2,879 | £12,182 |
Rent by the room upside
What we verified
4005
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▾
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 · monthlyNo location
SchoolsGIAS · OfstedNo postcode
FloodEA Flood Map · England onlyNo location
Investor profile▾
Tenant profileBeds + postcode heuristicUnknown
Rent by the room feasibilityMin 3 beds for C4 routeFeasible
Comparables
sold within 0.5 miLoading nearby sold…
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£1,219
Annual rental tax£379
CGT yr 5£0 · company level
5y net total£12,182
Acquisition costs
25% deposit£32,500
Stamp duty£6,600
Refurb£17,630
Legal + survey£1,700
Mortgage + broker£2,950
Cash needed£61,380
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
The Property Situated in a popular residential location, this well-presented mid-terrace family home offers spacious and well-proportioned accommodation throughout, making it an ideal purchase for first-time buyers, growing families or buy-to-let investors.
The property is entered via a welcoming entrance porch, providing a practical space for coats and shoes before leading into the main living accommodation. The bright and comfortable lounge is positioned to the front of th…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice