Rented normally, you'd make about £150 a month.

Will it pay?Calculator

£150 of every £2,643 is yours to keep, each month

You keep 6p of every pound of rent. The mortgage takes 65p.

+£2,643−£1,706−£751−£35£150

Rent inMortgageRunning costsTaxProfit

Rent £2,643, modelled from 6 nearby lettings

◧ market rent £2,643 · 6 comps2 empty weeks a year assumed

What if I change my assumptions?The dials

At the asking price, 25% deposit, 6.50% charged

Change any of these 16 and every card on this page changes with it. The 6.50% is the 5.75% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£146,450 + refurb costs

£41,450 of that never comes back — stamp duty, solicitor and lender fees.

£146,450 to buy it

~£54,855

deposit · stamp duty · solicitor · feeswe haven’t been inside

□ works not inspected

What would have to be true?

Nothing — it works at the asking price

The rent covers the mortgage, the running costs and the tax at the £420,000 asked, so there is no discount this card has to name. A lower price would be upside, not a condition.

◧ worked back from the rent

What will the rent borrow?Lender test

The rent carries £280,424 of the £315,000 loan

That £34,576 is yours to find on top of the deposit. Tested at 125% instead of 145% — a company or a basic-rate taxpayer usually is — the rent carries the whole loan. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£2,855 needed

more than the £2,541 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £2,541PRA-style test

How big is it, really?The plan

The rooms are on the plan; the total is not

The plan is on file; the floor area is not.

□ no floor area published

Is it a good location?Open the map

Croydon, CR0

No schools in this postcode area and flood risk checking… — open for the map, the schools and the rest.

Article 4Not assessed for this address

■ postcode area, not this address

What to know before you offerThe checks

Every tenancy here is periodic, with no Section 21 to end it

Tenancies are now periodic, with no Section 21 — budget a longer void.

1 problem found · 1 came back clear · 6 we could not check · 1 does not apply to this property

■ from the Renters’ Rights Act 2025listing last seen 28 Aug 2026

Which strategy wins?The ways to run it

Rent by the room beats Standard rental by £116 a month

Rent by the room needs £23,645 more cash than the others.

Rent by the room+£266 · £224,950 in

Standard rental+£150 · £201,305 in

Housing-benefit rent−£1,142 · £201,305 in

Short-stay let−£1,154 · £201,305 in

16 nearby short-lets within 11.1 km · low confidence

Each row: money kept a month, then the cash it ties up. Not compared: Do it up, then remortgage (pays back at the remortgage) · Guaranteed council rent (no scheme in this borough) · Buy, improve & sell (pays out on sale)

◧ 4 ways, one measureranked on money kept each month, at the asking price

What would you walk away with, after 5 years?The five-year sums

−£16,032 after five years on the cash you put in, before tax on the sale

Less than the same cash would have made in a savings account, after tax on the interest. The savings account’s capital is not at risk; the property’s is. A fall of about 29% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £201,305 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£201,305+£503,081−£12,577−£315,000+£9,770−£16,032

Cash you put inSale valueSelling costsMortgageRent keptYou are down

◧ 2.0%/yr growth assumed