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Year 5 disposal
BMV -9%
⊞ View all 18
33/ 100
Weak
6.53% return before costs — market rent unverified, verify rent + comps locally.
Why it works
- Priced below market -9% vs 12 nearby sold (last 12 mo) — instant equity
Why to be cautious
- Monthly profit −£168/mo — mildly negative — equity build may cover
- -1.5% 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.
- 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
−£168/mo
You top up £168/mo
Price vs market
Below market value
-9% vs 12 sold · interior unseen
Return · IRR
-1.5%/yr
Loses money over 5 years
Cash left in
£88K
Stays in after refinancing at value
Price £225KCash to buy £105KReturn before costs on price 6.53%5-yr return on cash -4%Rent est. £1,224 (£1,324–£1,132)
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: £1,324–£1,132/mo · n=21
Financing
DepositYour cash in — the rest is the mortgage25% · £56,249
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 (£21,813–£40,718 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £168,746.25 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
-£168
after mortgage, operating costs & tax
Rent in£1,224/mo gross
£1,177/mo collected · £47/mo lost to voids
Where it goes
£914Mortgage£430Costs
Outgoings exceed rent — you top up £168/mo
Mortgage£914
Costs£430
Management£122
Maintenance£100
Insurance£28
CapEx reserve£61
Voids + council tax£6
Ltd co. accounts£104
Selective licensing£9
Tax—
Shortfall−£168
Returns
Return before costs on price6.53%
Cash return on cash-1.92%
Gross margin£746
Cash needed£104,658
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 | £14,688 | £5,165 | £10,969 | £0 | £0 | -£1,446 | -£1,446 |
| Year 2 | £15,129 | £5,320 | £10,969 | £0 | £0 | -£1,160 | -£2,606 |
| Year 3 | £15,582 | £5,480 | £10,969 | £0 | £0 | -£866 | -£3,471 |
| Year 4 | £16,050 | £5,644 | £10,969 | £0 | £0 | -£563 | -£4,034 |
| Year 5 | £16,531 | £5,813 | £10,969 | £0 | £0 | -£251 | -£4,285 |
Disposal gain (gross)-£26,827
CGT£0
Net Disposal proceeds£242,202
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 cohortDH6 1QU · 3 bed
Primary profile
Family let
Nearest university
for student-let assessment
Northumbria · 23.6 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 history5d on marketno cuts yet
Strategy matrix
Refurb & refinance wins — -£159/mo · £9/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 | 6.53% | -£168 | £104,658 | -4.1% | Low | Feasible |
| Housing-benefit rent | 2.53% | -£805 | £104,658 | -43.5% | Med | Feasible |
| Council lease | 2.53% | -£700 | £104,658 | -39.4% | Low | Feasible |
| ⭐ Refurb & refinance | 6.53% | -£159 | £127,542 | -2.9% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£232 | £280,663 | -3% | Med | Feasible |
| Rent by the room | 8.30% | -£508 | £104,658 | -20.3% | — | Feasible |
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
Rent by the room conversion upside
+£197/mo cash flow vs Rent it out if converted to Rent by the room
12.80% Return before costs on price converted vs 6.53% as-is
As-is Rent it out
Monthly profit-£88
Return before costs on price6.53%
Cash needed£68,147
If converted to Rent by the room
Monthly profit+£108
Return before costs on price12.80%
Cash needed£84,147
Δ vs Rent it out Monthly profit+£197
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 · 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
£51,300–£92,715full refurb + room split
What's in this cost
- Kitchen£8,820–£17,640
- 1 × bathroom£5,850–£10,725
- Rewire£3,960–£6,930
- Replumb£2,970–£5,940
- Windows£9,900–£17,820
- Paint + decor£7,920–£12,870
- Flooring£11,880–£20,790
Comparables
sold within 0.5 miWide · CV 15.2%Med confidence
Loading nearby sold…
Location & area intelligence
Transport score100 / 100
On the map
- Registered HMOs
- Approved HMO conversions
- Pending HMO applications
Local HMO policy & concentration
≈0.0% within 100 m vs 10% policy
Schools & catchment4 schools nearby
Nearby schoolsOfsted-rated, nearest first4 of 5
- GoodElemore Hall SchoolNot applicable · Community special school · DH6 1QD
- Not ratedLudworth Primary SchoolPrimary · Community school · DH6 1LZ
- Not ratedPittington Primary SchoolPrimary · Community school · DH6 1AF
- Not ratedSherburn Primary SchoolPrimary · Community school · DH6 1DU
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£14,688
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£2,011
Exit costs
Projected sale price (5y · 2%/yr growth)£248,413
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-£4,285
Rates as of Oct 2024
Acquisition costs
£104,658cash neededPurchase price£224,995
Deposit (25%)£56,249
Stamp duty+5% additional-property surcharge£13,250
Refurb£29,084
Legal + survey£1,700
Mortgage fees£4,375
Total cash neededdeposit + costs (loan covers the rest)£104,658
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
Elite Estates welcome to the open market this spacious three bedroom home, perfectly positioned on a superb corner plot within a highly sought-after development. Offering fantastic potential throughout, the property is in need of updating, which is fully reflected within the asking price, making it an exciting opportunity for buyers looking to create their ideal home.
The accommodation is generously proportioned and further benefits from an integral garage, adding practicali…
Floor plans
Nearby active comparables1 rental · 5 deals
Comparable rentals
DH6 · same beds + typeMedian nearby: £995/mo · 1 of 1 already let-£229 vs our est
- Philip Avenue, Bowburn, DurhamLet3b£995/moMay 2026
Listing metarightmove · Elite Estates & Lettings
About this listing
5 days · RightmovePrice history
5-year price trend
Monthly profit
−£168
Cash needed
£105K
Return after costs
-1.92%
IRR
-1.48%
Listed 5d ago
Church Wynd, Sherburn Villa, Durham, DH6
detached · 3 bed · 1 bath
£224,995
est £1,224 · 6.53% gross
Priced below market
1 / 18
33/100
Marginal
6.53% — verify the rent + comps locally.
Priced below market -9% vs 12 nearby sold (last 12 mo)
Price
£225K
9% below sold comps
Return before costs
6.53%
est rent £1,224/monot enough comparables
Bedrooms
3
1 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: £1,324–£1,132/mo · n=21
Financing
DepositYour cash in — the rest is the mortgage25% · £56,249
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 (£21,813–£40,718 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,100 legal + £600 survey
Mortgage fees (£)
2% product fee on £168,746.25 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
-£168
after mortgage, operating costs & tax
Rent in£1,224/mo gross
£1,177/mo collected · £47/mo lost to voids
Where it goes
£914Mortgage£430Costs
Outgoings exceed rent — you top up £168/mo
Mortgage£914
Costs£430
Management£122
Maintenance£100
Insurance£28
CapEx reserve£61
Voids + council tax£6
Ltd co. accounts£104
Selective licensing£9
Tax—
Shortfall−£168
Returns
Return before costs on price6.53%
Cash return on cash-1.92%
Gross margin£746
Cash needed£104,658
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)
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 | £14,688 | £5,165 | £10,969 | £0 | £0 | -£1,446 | -£1,446 |
| Year 2 | £15,129 | £5,320 | £10,969 | £0 | £0 | -£1,160 | -£2,606 |
| Year 3 | £15,582 | £5,480 | £10,969 | £0 | £0 | -£866 | -£3,471 |
| Year 4 | £16,050 | £5,644 | £10,969 | £0 | £0 | -£563 | -£4,034 |
| Year 5 | £16,531 | £5,813 | £10,969 | £0 | £0 | -£251 | -£4,285 |
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 miWide · CV 15.2%Med confidence
Loading nearby sold…
Location & transport
Tax & exit
Tax bandLtd Co 25%
Mortgage-interest tax rule credit£2,194
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£4,285
Acquisition costs
25% deposit£56,249
Stamp duty£13,250
Refurb£29,084
Legal + survey£1,700
Mortgage + broker£4,375
Cash needed£104,658
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
Elite Estates welcome to the open market this spacious three bedroom home, perfectly positioned on a superb corner plot within a highly sought-after development. Offering fantastic potential throughout, the property is in need of updating, which is fully reflected within the asking price, making it an exciting opportunity for buyers looking to create their ideal home.
The accommodation is generously proportioned and further benefits from an integral garage, adding practicali…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice