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Year 5 disposal
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26/ 100
Weak
6.56% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- Auction lot — bridging-only finance, 28-day completion
- Monthly profit −£120/mo — mildly negative — equity build may cover
- -1.2% 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
−£120/mo
You top up £120/mo
Price
£225K
No local sold comps to compare
Return · IRR
-1.2%/yr
Loses money over 5 years
Cash to get in
£93K
Deposit + fees + refurb
Return before costs on price 6.56%5-yr return on cash -2%Rent est. £1,230 (£1,155–£1,310)
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: £1,155–£1,310/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £56,250
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 £168,750 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
-£120
after mortgage, operating costs & tax
Rent in£1,230/mo gross
£1,183/mo collected · £47/mo lost to voids
Where it goes
£879Mortgage£424Costs
Outgoings exceed rent — you top up £120/mo
Mortgage£879
Costs£424
Management£123
Maintenance£100
Insurance£28
CapEx reserve£62
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£120
Returns
Return before costs on price6.56%
Cash return on cash-1.55%
Gross margin£759
Cash needed£93,205
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.29
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 | £14,760 | £5,088 | £10,547 | £0 | £0 | -£874 | -£874 |
| Year 2 | £15,203 | £5,240 | £10,547 | £0 | £0 | -£584 | -£1,459 |
| Year 3 | £15,659 | £5,397 | £10,547 | £0 | £0 | -£285 | -£1,744 |
| Year 4 | £16,129 | £5,559 | £10,547 | £0 | £4 | £19 | -£1,725 |
| Year 5 | £16,613 | £5,726 | £10,547 | £0 | £65 | £275 | -£1,451 |
Disposal gain (gross)-£15,372
CGT£0
Net Disposal proceeds£242,208
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
Uncertain50% likely
Confidence: low
- Article 4 direction applies — planning permission required for C3->C4 HMO
- no known HMOs within 100m (below threshold)
- local council HMO approval rate 40% (10 decisions)
- NOTE: council HMO concentration policy not curated — the modal English policy (10% within 100m) is shown as an indication, not this council's adopted threshold
- 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
Council HMO policy not curated — assessed against a 10% / 100 m default; a low/absent count reflects register coverage, not zero nearby HMOs.
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 cohortWS8 6DU · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
Birmingham City · 17.1 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 history18d on marketno cuts yet
Strategy matrix
Rent it out wins — -£120/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 | 6.56% | -£120 | £93,205 | -1.6% | Low | Feasible |
| Housing-benefit rent | 4.92% | -£431 | £93,205 | -21.1% | Med | Feasible |
| Council lease | 0.00% | -£1,111 | £93,205 | -72.4% | Low | Feasible |
| Refurb & refinance | 6.56% | -£120 | £111,507 | -1.3% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£232 | £264,632 | 2% | Med | Feasible |
| Rent by the room | 9.60% | -£279 | £93,205 | -6.1% | — | 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
+£192/mo cash flow vs Rent it out if converted to Rent by the room
12.80% Return before costs on price converted vs 6.56% as-is
🔓 +3 bedrooms potential
medium confidence3 → 6 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 7 habitable rooms (3 beds + 4 reception(s)); convert 3 spare room(s) to bedrooms, keeping one reception as the lounge → up to 6 lettable rooms (incl. the garage — convertible to a bedroom or the communal area); sized to Walsall adopted standard (6.51/11 m²; Minimum HMO Standards Walsall (February 2018)); loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); mandatory HMO licence (5+ persons, England); 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 → 6 bed HMO+3 singles
HMO licence
Sized to Walsall'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.
As-is Rent it out
Monthly profit-£84
Return before costs on price6.56%
Cash needed£68,148
If converted to Rent by the room
Monthly profit+£108
Return before costs on price12.80%
Cash needed£84,148
Δ vs Rent it out Monthly profit+£192
Show conversion detail
Conversion cost estimate
£52,800
Range: £46,200 – £61,600
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
Planning approval likelihood
Uncertain · 50% 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 40% (10 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.
£56,030–£105,535full refurb + room split
What's in this cost
- Kitchen£9,180–£18,360
- 1 × bathroom£6,150–£11,275
- Rewire£4,400–£7,700
- Replumb£3,300–£6,600
- Windows£11,000–£19,800
- Paint + decor£8,800–£16,500
- Flooring£13,200–£25,300
Comparables
sold within 0.5 miLoading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Walsall 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
- GoodSt Bernadette's Catholic Primary SchoolPrimary · Academy sponsor led · WS8 6HX
- Not ratedOgley Hay Nursery SchoolNursery · Local authority nursery school · WS8 6AU
- Not ratedMillfield Primary SchoolPrimary · Community school · WS8 6BN
- Not ratedSt James AcademyPrimary · Academy converter · WS8 6AE
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£14,760
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£1,442
Exit costs
Projected sale price (5y · 2%/yr growth)£248,418
Capital gain (pre-CGT)£23,418
Sale costs (~2.5%)£6,210
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-£1,451
Rates as of Oct 2024
Acquisition costs
£93,205cash neededPurchase price£225,000
Deposit (25%)£56,250
Stamp duty+5% additional-property surcharge£13,250
Refurb£17,630
Legal + survey£1,700
Mortgage fees£4,375
Total cash neededdeposit + costs (loan covers the rest)£93,205
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
Auction House Birmingham are proud to present this for sale this lovely, three-bedroom detached house, offering generously proportioned living and dining spaces, off-road parking, and a beautifully maintained rear garden. With scope for modernisation, this is an appealing opportunity for buyers looking to shape a home around their own tastes and requirements.
The living and dining rooms offer inviting spaces for everyday relaxation, family gatherings and entertaining. The ex…
Floor plans
Listing metarightmove · Auction House Birmingham & Black Country, Aldridge.
About this listing
18 days · RightmovePrice history
5-year price trend
Monthly profit
−£120
Cash needed
£93K
Return after costs
-1.55%
IRR
-1.20%
Listed 18d ago
Chester Road, Walsall
detached · 3 bed · 1 bath
£225,000
est £1,230 · 6.56% gross
1 / 28
26/100
Marginal
6.56% — verify the rent + comps locally.
6.56% Return before costs — around the area average for this property type.
Monthly profit −£120/mo at the default 25% deposit @ 5.5% — open the calculator to stress-test.
Price
£225K
Return before costs
6.56%
est rent £1,230/monot enough comparablesRange £1,155–£1,310/mo (Q1–Q3)
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: £1,155–£1,310/mo · n=8
Financing
DepositYour cash in — the rest is the mortgage25% · £56,250
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 £168,750 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
-£120
after mortgage, operating costs & tax
Rent in£1,230/mo gross
£1,183/mo collected · £47/mo lost to voids
Where it goes
£879Mortgage£424Costs
Outgoings exceed rent — you top up £120/mo
Mortgage£879
Costs£424
Management£123
Maintenance£100
Insurance£28
CapEx reserve£62
Voids + council tax£7
Ltd co. accounts£104
Tax—
Shortfall−£120
Returns
Return before costs on price6.56%
Cash return on cash-1.55%
Gross margin£759
Cash needed£93,205
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress1.29
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 | £14,760 | £5,088 | £10,547 | £0 | £0 | -£874 | -£874 |
| Year 2 | £15,203 | £5,240 | £10,547 | £0 | £0 | -£584 | -£1,459 |
| Year 3 | £15,659 | £5,397 | £10,547 | £0 | £0 | -£285 | -£1,744 |
| Year 4 | £16,129 | £5,559 | £10,547 | £0 | £4 | £19 | -£1,725 |
| Year 5 | £16,613 | £5,726 | £10,547 | £0 | £65 | £275 | -£1,451 |
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 miLoading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,109
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£1,451
Acquisition costs
25% deposit£56,250
Stamp duty£13,250
Refurb£17,630
Legal + survey£1,700
Mortgage + broker£4,375
Cash needed£93,205
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
Auction House Birmingham are proud to present this for sale this lovely, three-bedroom detached house, offering generously proportioned living and dining spaces, off-road parking, and a beautifully maintained rear garden. With scope for modernisation, this is an appealing opportunity for buyers looking to shape a home around their own tastes and requirements.
The living and dining rooms offer inviting spaces for everyday relaxation, family gatherings and entertaining. The ex…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice