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Year 5 disposal
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85/ 100
Strong
Strong investment fundamentals.
Why it works
- 13.16% return before costs — above-market
- Stress Rent-covers-mortgage check PASS at 6.5% rate stress — lender-friendly
Why to be cautious
- No rent comparables — estimate is a rule-of-thumb fallback, not market data. Verify the rent locally before offering.
- 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
+£181/mo
Barely breaks even each month
Price vs market
Above comparable sales
+54% vs 12 sold
Return · IRR
2.9%/yr
Modest annualised return
Cash to get in
£89K
Deposit + fees + refurb
Price £220KReturn before costs on price 13.16%5-yr return on cash 21%Rent est. £2,412 (£2,138–£2,721)
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: £2,138–£2,721/mo · n=24
Financing
DepositYour cash in — the rest is the mortgage25% · £55,000
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 (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £165,000 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£181
after mortgage, operating costs & tax
Rent in£2,412/mo gross
£2,319/mo collected · £93/mo lost to voids
Where it goes
£894Mortgage£1,202Costs
£181/mo left as profit · 8% of rent kept
Mortgage£894
Costs£1,202
Management£241
Maintenance£67
Insurance£28
CapEx reserve£121
Voids + council tax£10
Service charge + ground rent£631
Ltd co. accounts£104
Tax£42
Profit+£181
Returns
Return before costs on price13.16%
Cash return on cash2.43%
Gross margin£1,117
Cash needed£89,311
Monthly profit payback41y 2m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.59
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 | £28,944 | £14,425 | £10,725 | £0 | £721 | £3,073 | £3,073 |
| Year 2 | £29,812 | £14,858 | £10,725 | £0 | £804 | £3,425 | £6,498 |
| Year 3 | £30,707 | £15,304 | £10,725 | £0 | £889 | £3,789 | £10,287 |
| Year 4 | £31,628 | £15,763 | £10,725 | £0 | £977 | £4,163 | £14,451 |
| Year 5 | £32,577 | £16,236 | £10,725 | £0 | £1,067 | £4,549 | £19,000 |
Disposal gain (gross)-£13,186
CGT£0
Net Disposal proceeds£236,825
What we verified
What we verified
32073 ok · 2 caution · 0 fail · 7 unknown
Legal & planning
LeaseholdLeasehold
Tenure & planningLeasehold
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
Likely approvable71% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
- 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 40 m vs 10% policy
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
EWS1& cladding statusListing signal
OKInfoVerifyCritical
Severity
Inferred from listing text
Critical
Lender impact
Top-floor / penthouse listing — building almost certainly > 11 m. Must have EWS1 or PAS 9980 to be mortgageable; verify with vendor.
Most lenders refuse
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 cohortSO14 3FY · 3 bed
Primary profile
Mixed demand
Nearest university
for student-let assessment
University of Southampton · 4.3 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
3-bed · 2-bath · 990 sqft
£28k–£56k
£ per sqft
building cost only
£29–£56
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- 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 history31d on marketno cuts yet
Sale price historythis address, HM Land RegistryPrice-Paid Data
Asking vs last sale
£349,950 in 2004 → £220,000 asking
-37.1%in 22y
- 2004£349,950—
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 — +£460/mo · £279/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 | 13.16% | +£181 | £89,311 | 21.3% | Low | Feasible |
| Housing-benefit rent | 5.85% | -£937 | £89,311 | -57.2% | Med | Feasible |
| ⭐ Council lease | 13.16% | +£460 | £89,311 | 35.8% | Low | Feasible |
| Refurb & refinance | 13.16% | +£181 | £106,355 | 17.9% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£830 | £256,055 | 2% | Med | Feasible |
| Rent by the room | 10.64% | -£821 | £89,311 | -44.1% | — | Feasible |
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £1,072/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £1,072
- 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
-£601/mo cash flow vs Rent it out if converted to Rent by the room
13.09% Return before costs on price converted vs 13.16% as-is
As-is Rent it out
Monthly profit+£725
Return before costs on price13.16%
Cash needed£66,898
If converted to Rent by the room
Monthly profit+£124
Return before costs on price13.09%
Cash needed£82,898
Δ vs Rent it out Monthly profit-£601
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
Likely approvable · 71% likely
low confidence
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 40m (below threshold)
- local council HMO approval rate 71% (187 decisions)
≈0.0% within 40 m vs 10% policy
£54,690–£102,530full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 2 × bathroom£11,400–£20,900
- Rewire£3,960–£6,930
- Replumb£2,970–£5,940
- Windows£9,900–£17,820
- Paint + decor£6,930–£12,870
- Flooring£10,890–£20,790
Comparables
sold within 0.5 miWide · CV 37.1%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Southampton City-wide HMO Article 4
≈0.0% within 40 m vs 10% policy
Tax treatment
Annual gross rent£28,944
Section 24 credit£0
Annual tax due£721
Post-tax Monthly profit annual£1,960
Exit costs
Projected sale price (5y · 2%/yr growth)£242,898
Capital gain (pre-CGT)£22,898
Sale costs (~2.5%)£6,072
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£19,000
Rates as of Oct 2024
Acquisition costs
£89,311cash neededPurchase price£220,000
Deposit (25%)£55,000
Stamp duty+5% additional-property surcharge£12,900
Refurb£15,111
Legal + survey£2,000
Mortgage fees£4,300
Total cash neededdeposit + costs (loan covers the rest)£89,311
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
CHAIN FREE Duplex Penthouse Apartment Ocean Village Location Three Balconies Three Bedrooms Under Croft Parking
Set within the highly sought-after Charter House development on the fringes of Ocean Village, this exceptionally spacious three-bedroom penthouse apartment offers an impressive arrangement of accommodation across both the sixth and seventh floors, enjoying elevated southerly views towards Southampton waterside.
Upon entering the property, you are welcomed b…
Floor plans
Nearby active comparables15 rentals · 5 deals
Comparable rentals
SO14 · same beds + typeMedian nearby: £1,550/mo · 15 of 15 already let-£862 vs our est
- Ocean Way, Southampton, SO14Let3b£2,700/moMay 2026
- Cranbury Avenue,SouthamptonLet3b£1,350/moMay 2026
- The Hawkins Tower, Admirals Quay, Oce…Let3b£2,950/moMay 2026
- The CorranadesLet3b£1,550/moMay 2026
- The CarronadesLet3b£1,550/moMay 2026
- Bellevue Terrace, Southampton, SO14Let3b£1,575/moMay 2026
- Oxford Street, Southampton, Hampshire…Let3b£1,350/moDec 2025
- Alma Road, SouthamptonLet3b£1,500/moDec 2025
- Denzil Avenue, Southampton, Hampshire…Let3b£1,100/moMay 2026
- New Road, Southampton SO14Let3b£1,550/moMay 2026
- Oxford Street, Southampton, Hampshire…Let3b£1,350/moDec 2025
- Charter House, Canute Road, Southampt…Let3b£2,500/moJun 2025
- 128 Bevois Valley Road, Portswood, So…Let3b£1,250/moJun 2025
- York Close, Southampton SO14Let3b£1,200/moJun 2025
- High Street, Southampton SO14Let3b£1,850/moJun 2025
Listing metarightmove · Morris Dibben
About this listing
31 days · RightmovePrice history
5-year price trend
Monthly profit
+£181
Cash needed
£89K
Return after costs
2.43%
IRR
2.91%
Listed 31d ago
Charter House, 85 Canute Road, Southampton, Hampshire, SO14
flat · 3 bed · 2 bath
£220,000
est £2,412 · 13.16% gross
Chain free
1 / 18
85/100
Strong
Real 13.16% — fundamentals work.
Stress Rent-covers-mortgage check PASS at 6.5% rate stress
13.16% Return before costs — above-market
Chain free
Price
£220K
54% above sold comps
Return before costs
13.16%
est rent £2,412/monot enough comparablesRange £2,138–£2,721/mo (Q1–Q3)
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: £2,138–£2,721/mo · n=24
Financing
DepositYour cash in — the rest is the mortgage25% · £55,000
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 (£11,333–£21,155 range), VAT-inclusive
Legal + survey (£)
Leasehold flat — £1,500 legal + £500 survey
Mortgage fees (£)
2% product fee on £165,000 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 £200K–£400K
Maintenance (£/mo)
Semi/flat: £67/mo proxy
Leasehold costs
Result · Rent it out
Monthly profit
+£181
after mortgage, operating costs & tax
Rent in£2,412/mo gross
£2,319/mo collected · £93/mo lost to voids
Where it goes
£894Mortgage£1,202Costs
£181/mo left as profit · 8% of rent kept
Mortgage£894
Costs£1,202
Management£241
Maintenance£67
Insurance£28
CapEx reserve£121
Voids + council tax£10
Service charge + ground rent£631
Ltd co. accounts£104
Tax£42
Profit+£181
Returns
Return before costs on price13.16%
Cash return on cash2.43%
Gross margin£1,117
Cash needed£89,311
Monthly profit payback41y 2m
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress2.59
Rent-covers-mortgage check PASS · stress 6.5% (target 1.45)
Housing-benefit (LHA) scheme detailBRMA Southampton · cap £1,072/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Southampton
- LHA monthly cap:
- £1,072
- 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 | £28,944 | £14,425 | £10,725 | £0 | £721 | £3,073 | £3,073 |
| Year 2 | £29,812 | £14,858 | £10,725 | £0 | £804 | £3,425 | £6,498 |
| Year 3 | £30,707 | £15,304 | £10,725 | £0 | £889 | £3,789 | £10,287 |
| Year 4 | £31,628 | £15,763 | £10,725 | £0 | £977 | £4,163 | £14,451 |
| Year 5 | £32,577 | £16,236 | £10,725 | £0 | £1,067 | £4,549 | £19,000 |
Rent by the room upside
What we verified
5207
Legal & planning▾
Article 4HMO restriction lookupUnknown
Rent by the room licensingMandatory if 5+ unrelatedCheck LPA
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
Service chargeReduces net yield£7,224.5/yr
Ground rentDoubling clauses kill mortgageability£350/yr
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 37.1%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,145
Annual rental tax£509
CGT yr 5£0 · company level
5y net total£19,000
Acquisition costs
25% deposit£55,000
Stamp duty£12,900
Refurb£15,111
Legal + survey£2,000
Mortgage + broker£4,300
Cash needed£89,311
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
CHAIN FREE Duplex Penthouse Apartment Ocean Village Location Three Balconies Three Bedrooms Under Croft Parking
Set within the highly sought-after Charter House development on the fringes of Ocean Village, this exceptionally spacious three-bedroom penthouse apartment offers an impressive arrangement of accommodation across both the sixth and seventh floors, enjoying elevated southerly views towards Southampton waterside.
Upon entering the property, you are welcomed b…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice