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Year 5 disposal
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Weak
4.63% Rent by the room return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- 2.61% return — below most lender Rent-covers-mortgage checks
- Monthly profit −£1,054/mo — heavily negative — needs monthly capital injection
- -9.5% 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
−£1K/mo
You top up £1K/mo
Price vs market
Above comparable sales
+35% vs 12 sold
Return · IRR
-9.5%/yr
Loses money over 5 years
Cash to get in
£143K
Deposit + fees + refurb
Price £350KReturn before costs on price · Rent by the room 4.63%5-yr return on cash -42%Rent est. £760 (£689–£838)
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: £689–£838/mo · n=116
Financing
DepositYour cash in — the rest is the mortgage25% · £87,500
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 (£16,391–£30,597 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £262,500 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 £200K–£400K
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£1,054
after mortgage, operating costs & tax
Rent in£760/mo gross
£731/mo collected · £29/mo lost to voids
Where it goes
£1,422Mortgage£363Costs
Outgoings exceed rent — you top up £1,054/mo
Mortgage£1,422
Costs£363
Management£76
Maintenance£100
Insurance£28
CapEx reserve£38
Voids + council tax£11
Ltd co. accounts£104
Selective licensing£6
Tax—
Shortfall−£1,054
Returns
Return before costs on price2.61%
Cash return on cash-8.86%
Gross margin£367
Cash needed£142,755
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.51
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 | £9,120 | £4,360 | £17,063 | £0 | £0 | -£12,302 | -£12,302 |
| Year 2 | £9,394 | £4,490 | £17,063 | £0 | £0 | -£12,159 | -£24,461 |
| Year 3 | £9,675 | £4,625 | £17,063 | £0 | £0 | -£12,012 | -£36,473 |
| Year 4 | £9,966 | £4,764 | £17,063 | £0 | £0 | -£11,861 | -£48,334 |
| Year 5 | £10,265 | £4,907 | £17,063 | £0 | £0 | -£11,705 | -£60,038 |
Disposal gain (gross)-£22,237
CGT£0
Net Disposal proceeds£376,768
What we verified
What we verified
50075 ok · 0 caution · 0 fail · 7 unknown
Legal & planning
LeaseholdFreehold
Tenure & planningFreehold
Legal & planning
2 checks- TenureUnknown
- Lease lengthUnknown
Council planning restrictionUnknown
Council planning restrictionRent by the room conversion gatePlanning data
Conversion approvability
Per-property planning assessment
Uncertain43% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- sparse local HMO decisions (3) — limited history
- this council refuses HMOs that would sandwich a family home between two HMOs — check both adjoining properties
- NO HMO concentration data for this council: neither a licensed register nor granted change-of-use decisions nearby. This is ABSENCE OF DATA, not absence of HMOs — verify with the council before relying on it
Rent by the room concentration nearby
≈0.0% within 100 m vs 10% policy
Rent by the room restriction
C3 to C4 conversion
Unknown
Confidence
low
Source
No LPA data for this prefix
⚠️ Selective Licensing in scope
Selective scheme — 103 designated areas (~29k properties)
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 cohortDH4 6HQ · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
Northumbria · 14.5 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 · 2-bath · 1593 sqft
£39k–£76k
£ per sqft
building cost only
£25–£48
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£11,151–£20,709
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£17,523–£33,453
Guide rates · UK May 2026
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 history87d on marketno cuts yet
Sale price historythis address, HM Land RegistryPrice-Paid Data
Asking vs last sale
£230,000 in 2013 → £350,000 asking
+52.2%in 13y
- 2013£230,000—
HM Land Registry · Price-Paid Data (Open Government Licence). Growth percentages are nominal — not adjusted for inflation or local market movement.
Strategy matrix
Short-stay let / Airbnb wins — -£1,023/mo · £26/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 | 2.61% | -£1,054 | £142,755 | -42.1% | Low | Feasible |
| Housing-benefit rent | 1.63% | -£1,323 | £142,755 | -53.7% | Med | Feasible |
| Council lease | 1.63% | -£1,208 | £142,755 | -50.2% | Low | Feasible |
| Refurb & refinance | 2.61% | -£1,048 | £168,997 | -35.3% | Med | Feasible |
| ⭐ Short-stay let / Airbnb | 4.27% | -£1,023 | £142,755 | -41.7% | High | Feasible |
| Buy, improve & sell | 0.00% | -£232 | £407,747 | 3% | Med | Feasible |
| Rent by the room | 4.63% | -£1,715 | £168,755 | -57.6% | — | Feasible |
Short-let (SA) context536 active short-lets nearby
Short-let market context
- 536 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Durham · cap £474/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Durham
- LHA monthly cap:
- £474
- Scheme type:
- leasing
- Premium:
- +0% 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
Local lettings demandby strategyLive area data
Short-stay let36% occupancy
£114/night ADR
Based on 33 short-let comps nearby
Rent by the room conversion upside
+£599/mo cash flow vs Rent it out if converted to Rent by the room
8.23% Return before costs on price converted vs 2.61% as-is
Room mix (3 lettable rooms)
3× Double @ £450/mo
≈ £1,350/mo gross room income
As-is Rent it out
Monthly profit-£953
Return before costs on price2.61%
Cash needed£99,398
If converted to Rent by the room
Monthly profit-£354
Return before costs on price8.23%
Cash needed£115,398
Δ vs Rent it out Monthly profit+£599
Show conversion detail
Conversion cost estimate
£44,000
Range: £38,000 – £52,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Uncertain · 43% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- sparse local HMO decisions (3) — limited history
≈0.0% within 100 m vs 10% policy
£79,461–£142,635full refurb + room split
What's in this cost
- Kitchen£8,820–£17,640
- 2 × bathroom£11,700–£21,450
- Rewire£6,372–£11,151
- Replumb£4,779–£9,558
- Windows£15,930–£28,674
- Paint + decor£12,744–£20,709
- Flooring£19,116–£33,453
Based on 4 HMO comps within 4.2 km
Comparables
sold within 0.5 miMed · CV 11.6%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Citywide Article 4 (County Durham)
≈0.0% within 100 m vs 10% policy
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- Not ratedBournmoor Primary SchoolPrimary · Community school · DH4 6HF
- Not ratedDubmire PrimaryPrimary · Academy sponsor led · DH4 6HL
- Not ratedWest Rainton Primary SchoolPrimary · Community school · DH4 6RN
- Not ratedWoodlea Primary SchoolPrimary · Academy converter · DH4 6AR
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£9,120
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£12,653
Exit costs
Projected sale price (5y · 2%/yr growth)£386,428
Capital gain (pre-CGT)£36,428
Sale costs (~2.5%)£9,661
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-£60,038
Rates as of Oct 2024
Acquisition costs
£142,755cash neededPurchase price£350,000
Deposit (25%)£87,500
Stamp duty+5% additional-property surcharge£25,000
Refurb£21,855
Legal + survey£2,150
Mortgage fees£6,250
Total cash neededdeposit + costs (loan covers the rest)£142,755
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
Enjoying a large plot secluded by stone walls and fencing this bespoke Detached Family Home offers extensive accommodation on two floors.
A spacious Hallway with useful Cloakroom/WC guides you into the full length Lounge/Dining Room which enjoys a feature fireplace and duel aspects. This is further complemented by a adjoining Conservatory that has direct access into the Rear Gardens.
Both reception rooms are very well served by sociable Breakfast Kitchen and an Inner Lobby…
Floor plans
Listing metarightmove · YOUR MOVE Chris Stonock
About this listing
87 days · RightmovePrice history
5-year price trend
Monthly profit
−£1,054
Cash needed
£143K
Return after costs
-8.86%
IRR
-9.50%
Listed 87d ago
Church Close, Chester Road, Bournmoor, Houghton Le Spring, Durham, DH4
detached · 3 bed · 2 bath · 1,593 sqft
£350,000
est £760 · 2.61% gross
1 / 18
0/100
Marginal
4.63% Rent by the room strategy — market rent unverified, verify locally.
2.61% Return before costs — around the area average for this property type.
Monthly profit −£1,054/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£350K
35% above sold comps
Return before costs (best)
4.63%
Rent by the room
Bedrooms
3
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: £689–£838/mo · n=116
Financing
DepositYour cash in — the rest is the mortgage25% · £87,500
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 (£16,391–£30,597 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,400 legal + £750 survey
Mortgage fees (£)
2% product fee on £262,500 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 £200K–£400K
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£1,054
after mortgage, operating costs & tax
Rent in£760/mo gross
£731/mo collected · £29/mo lost to voids
Where it goes
£1,422Mortgage£363Costs
Outgoings exceed rent — you top up £1,054/mo
Mortgage£1,422
Costs£363
Management£76
Maintenance£100
Insurance£28
CapEx reserve£38
Voids + council tax£11
Ltd co. accounts£104
Selective licensing£6
Tax—
Shortfall−£1,054
Returns
Return before costs on price2.61%
Cash return on cash-8.86%
Gross margin£367
Cash needed£142,755
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.51
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Short-let (SA) context536 active short-lets nearby
Short-let market context
- 536 active short-let listings in this postcode
Housing-benefit (LHA) scheme detailBRMA Durham · cap £474/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Durham
- LHA monthly cap:
- £474
- Scheme type:
- leasing
- Premium:
- +0% 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 | £9,120 | £4,360 | £17,063 | £0 | £0 | -£12,302 | -£12,302 |
| Year 2 | £9,394 | £4,490 | £17,063 | £0 | £0 | -£12,159 | -£24,461 |
| Year 3 | £9,675 | £4,625 | £17,063 | £0 | £0 | -£12,012 | -£36,473 |
| Year 4 | £9,966 | £4,764 | £17,063 | £0 | £0 | -£11,861 | -£48,334 |
| Year 5 | £10,265 | £4,907 | £17,063 | £0 | £0 | -£11,705 | -£60,038 |
Rent by the room upside
What we verified
5007
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 · 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 miMed · CV 11.6%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£3,413
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£60,038
Acquisition costs
25% deposit£87,500
Stamp duty£25,000
Refurb£21,855
Legal + survey£2,150
Mortgage + broker£6,250
Cash needed£142,755
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
Enjoying a large plot secluded by stone walls and fencing this bespoke Detached Family Home offers extensive accommodation on two floors.
A spacious Hallway with useful Cloakroom/WC guides you into the full length Lounge/Dining Room which enjoys a feature fireplace and duel aspects. This is further complemented by a adjoining Conservatory that has direct access into the Rear Gardens.
Both reception rooms are very well served by sociable Breakfast Kitchen and an Inner Lobby…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice