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Year 5 disposal
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0/ 100
Weak
5.03% return before costs — market rent unverified, verify rent + comps locally.
Why it works
Why to be cautious
- EPC D — must hit C by 2030 (~£3,000–£7,000)
- Monthly profit −£772/mo — heavily negative — needs monthly capital injection
- -4.5% 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
−£772/mo
You top up £772/mo
Price
£780K
No local sold comps to compare
Return · IRR
-4.5%/yr
Loses money over 5 years
Cash to get in
£280K
Deposit + fees + refurb
Return before costs on price 5.03%5-yr return on cash -11%Rent est. £3,267 (£3,298–£3,236)
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: £3,298–£3,236/mo · n=12
Financing
DepositYour cash in — the rest is the mortgage25% · £195,000
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 (£1,013–£1,890 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £585,000 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 £400K+
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£772
after mortgage, operating costs & tax
Rent in£3,267/mo gross
£3,141/mo collected · £126/mo lost to voids
Where it goes
£3,169Mortgage£745Costs
Outgoings exceed rent — you top up £772/mo
Mortgage£3,169
Costs£745
Management£327
Maintenance£100
Insurance£40
CapEx reserve£163
Voids + council tax£11
Ltd co. accounts£104
Tax—
Shortfall−£772
Returns
Return before costs on price5.03%
Cash return on cash-3.31%
Gross margin£2,396
Cash needed£279,950
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.99
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 | £39,204 | £8,941 | £38,025 | £0 | £0 | -£7,762 | -£7,762 |
| Year 2 | £40,380 | £9,209 | £38,025 | £0 | £0 | -£6,854 | -£14,616 |
| Year 3 | £41,592 | £9,486 | £38,025 | £0 | £0 | -£5,919 | -£20,535 |
| Year 4 | £42,839 | £9,770 | £38,025 | £0 | £0 | -£4,956 | -£25,491 |
| Year 5 | £44,124 | £10,063 | £38,025 | £0 | £0 | -£3,964 | -£29,455 |
Disposal gain (gross)-£12,597
CGT£0
Net Disposal proceeds£839,653
What we verified
What we verified
51065 ok · 1 caution · 0 fail · 6 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
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 ratingD
EPC& 2030 deadlineEPC register
▼
ABCDEFG
Current rating
Address-matched (ground truth)Band D
MEES 2030 compliance
C required for new tenancies
FAIL
Upgrade to C
estimated cost
£3k–£7k
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 cohortRH1 3HQ · 4 bed
Primary profile
Family let
Secondary profile
HMO / sharers
Nearest university
for student-let assessment
Imperial College · 27.6 km
Reason
4-bed house in a suburban area — family-let demand dominates; larger property may also work as a sharer HMO.
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
4-bed · 2-bath · 1170 sqft
£32k–£62k
£ per sqft
building cost only
£27–£53
Per-item breakdown (4 lines)
- Kitchen · Full unit replacement£3,840–£8,640
- 2 × bathroom · Full strip + retile£6,650–£13,300
- Paint + decor£8,190–£15,210
- Flooring · Carpet on bedrooms + LVT/laminate downstairs£12,870–£24,570
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 history3d on market1 price change
Sale price historythis address, HM Land RegistryPrice-Paid Data
Asking vs last sale
£360,000 in 2010 → £780,000 asking
+116.7%in 16y
- 2010£360,000+51.6% in 7y
- 2003£237,500—
HM Land Registry · Price-Paid Data (Open Government Licence). Growth percentages are nominal — not adjusted for inflation or local market movement.
Strategy matrix
Rent it out wins — -£772/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 | 5.03% | -£772 | £279,950 | -10.5% | Low | Feasible |
| Housing-benefit rent | 2.68% | -£2,121 | £279,950 | -41.0% | Med | Feasible |
| Council lease | 2.68% | -£1,755 | £279,950 | -35.7% | Low | Feasible |
| Refurb & refinance | 5.03% | -£772 | £319,490 | -9.2% | Med | Feasible |
| Short-stay let / Airbnb | — | — | — | — | — | Disabledno local short-let data |
| Buy, improve & sell | 0.00% | -£244 | £852,790 | 8% | Med | Feasible |
| Rent by the room | 3.69% | -£2,409 | £279,950 | -46.3% | — | Feasible |
Housing-benefit (LHA) scheme detailBRMA Crawley & Reigate · cap £1,745/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Crawley & Reigate
- LHA monthly cap:
- £1,745
- Scheme type:
- other
- Premium:
- +0% premium over LHA cap
- Management:
- landlord pays agent (typical 10%)
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
-£1,436/mo cash flow vs Rent it out if converted to Rent by the room
3.69% Return before costs on price converted vs 5.03% as-is
🔓 +1 bedroom potential
medium confidence4 → 5 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
EPC shows 6 habitable rooms (4 beds + 2 reception(s)) in 138 m²; convert 1 spare room(s) to bedrooms, keeping one reception as the lounge → up to 5 lettable rooms; sized to Reigate and Banstead adopted standard (6.51/10.22 m²; Licensing of HMOs webpage (council applies statutory prescribed licence conditions)); loft conversion may add 1-2 further rooms (subject to head height/planning — not counted); mandatory HMO licence (5+ persons, England)
🔒 Room-add markup · Pro
Pro members see the floorplan with every convertible room outlined in green. Verify room sizes before offering.
4 → 5 bed HMO
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-£598
Return before costs on price5.03%
Cash needed£206,898
If converted to Rent by the room
Monthly profit-£2,034
Return before costs on price3.69%
Cash needed£222,898
Δ vs Rent it out Monthly profit-£1,436
Show conversion detail
Conversion cost estimate
£26,000
Range: £20,000 – £34,000
Fire safety, plumbing, partitioning, licensing.
Rates as of Apr 2026
£60,990–£114,230full refurb + room split
What's in this cost
- Kitchen£8,640–£17,280
- 2 × bathroom£11,400–£20,900
- Rewire£4,680–£8,190
- Replumb£3,510–£7,020
- Windows£11,700–£21,060
- Paint + decor£8,190–£15,210
- Flooring£12,870–£24,570
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
Schools & catchment5 schools nearby
Nearby schoolsOfsted-rated, nearest first5 of 5
- OutstandingLime Tree Primary School and NurseryPrimary · Academy sponsor led · RH1 3LH
- GoodFurzefield Primary AcademyPrimary · Academy converter · RH1 3PA
- GoodMerstham Primary SchoolPrimary · Academy converter · RH1 3AZ
- Not ratedAurora Chaldon SchoolNot applicable · Other independent special school · RH1 3DB
- Not ratedWoodfield SchoolNot applicable · Community special school · RH1 3PR
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£39,204
Section 24 credit£0
Annual tax due£0
Post-tax Monthly profit annual-£9,270
Exit costs
Projected sale price (5y · 2%/yr growth)£861,183
Capital gain (pre-CGT)£81,183
Sale costs (~2.5%)£21,530
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-£29,455
Rates as of Oct 2024
Acquisition costs
£279,950cash neededPurchase price£780,000
Deposit (25%)£195,000
Stamp duty+5% additional-property surcharge£68,000
Refurb£1,350
Legal + survey£2,900
Mortgage fees£12,700
Total cash neededdeposit + costs (loan covers the rest)£279,950
Green = verified data. Amber = market typical. Red = our estimate — verify before offering.
About this propertydescription · rightmove
Description& agent copyRightmove
A four bedroom detached property which has been thoughtfully refurbished and upgraded by the current owners and offered to the market with off street parking, landscaped rear garden and studio/office/workshop. The accommodation includes fully fitted 19' x 14' kitchen/dining room, 13' x 11' family room, 12' x 11' sitting room, downstairs shower room, utility room, bi-fold doors giving access to rear garden and four piece suite family bathroom. The property is situated in a sem…
Floor plans
Listing metarightmove · Thomas & May
About this listing
3 days · RightmovePrice history
5-year price trend
Monthly profit
−£772
Cash needed
£280K
Return after costs
-3.31%
IRR
-4.47%
Listed 3d ago
16, MILL LANE, MERSTHAM, REDHILL, RH1 3HQ
✓ Verified address
detached · 4 bed · 2 bath · 1,485 sqft (EPC)
£780,000
est £3,267 · 5.03% gross
EPC D
1 / 20
0/100
Marginal
5.03% — verify the rent + comps locally.
Energy rating D — must hit C by 2030 (~£3,000–£7,000)
Price
£780K
Return before costs
5.03%
est rent £3,267/monot enough comparables
Bedrooms
4
2 bath
Energy rating
D
Energy rating
Deal flags1 issue
EPC D — upgrade by 2030
Must reach EPC C by 2030 to let on a new tenancy
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: £3,298–£3,236/mo · n=12
Financing
DepositYour cash in — the rest is the mortgage25% · £195,000
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 (£1,013–£1,890 range), VAT-inclusive
Legal + survey (£)
Standard house — £1,900 legal + £1,000 survey
Mortgage fees (£)
2% product fee on £585,000 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 £400K+
Maintenance (£/mo)
Detached: £100/mo proxy (more roof + grounds)
Leasehold costs
Result · Rent it out
Monthly profit
-£772
after mortgage, operating costs & tax
Rent in£3,267/mo gross
£3,141/mo collected · £126/mo lost to voids
Where it goes
£3,169Mortgage£745Costs
Outgoings exceed rent — you top up £772/mo
Mortgage£3,169
Costs£745
Management£327
Maintenance£100
Insurance£40
CapEx reserve£163
Voids + council tax£11
Ltd co. accounts£104
Tax—
Shortfall−£772
Returns
Return before costs on price5.03%
Cash return on cash-3.31%
Gross margin£2,396
Cash needed£279,950
Monthly profit paybackn/a (monthly loss)
Data confidence
Lender stress test
Rent-covers-mortgage check @ stress0.99
Rent-covers-mortgage check FAIL · stress 6.5% (need ≥ 1.45)
Housing-benefit (LHA) scheme detailBRMA Crawley & Reigate · cap £1,745/mo
Housing-benefit rent scheme detail
- Rental Market Area (BRMA):
- Crawley & Reigate
- LHA monthly cap:
- £1,745
- Scheme type:
- other
- Premium:
- +0% premium over LHA cap
- Management:
- landlord pays agent (typical 10%)
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 | £39,204 | £8,941 | £38,025 | £0 | £0 | -£7,762 | -£7,762 |
| Year 2 | £40,380 | £9,209 | £38,025 | £0 | £0 | -£6,854 | -£14,616 |
| Year 3 | £41,592 | £9,486 | £38,025 | £0 | £0 | -£5,919 | -£20,535 |
| Year 4 | £42,839 | £9,770 | £38,025 | £0 | £0 | -£4,956 | -£25,491 |
| Year 5 | £44,124 | £10,063 | £38,025 | £0 | £0 | -£3,964 | -£29,455 |
Rent by the room upside
What we verified
5106
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▾
EPC~£3,000–£7,000 to upgrade to CD
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£7,605
Annual rental tax£0
CGT yr 5£0 · company level
5y net total-£29,455
Acquisition costs
25% deposit£195,000
Stamp duty£68,000
Refurb£1,350
Legal + survey£2,900
Mortgage + broker£12,700
Cash needed£279,950
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
A four bedroom detached property which has been thoughtfully refurbished and upgraded by the current owners and offered to the market with off street parking, landscaped rear garden and studio/office/workshop. The accommodation includes fully fitted 19' x 14' kitchen/dining room, 13' x 11' family room, 12' x 11' sitting room, downstairs shower room, utility room, bi-fold doors giving access to rear garden and four piece suite family bathroom. The property is situated in a sem…
Floor plans
Listing
Sources: Rightmove · HM Land Registry · Ofsted · EA Flood Zones
Estimates not financial advice
Estimates not financial advice