Rented normally, you'd make about £159 a month.

Will it pay?Calculator

£159 of every £877 is yours to keep, each month

You keep 18p of every pound of rent. The mortgage takes 37p.

+£877−£325−£356−£37£159

Rent inMortgageRunning costsTaxProfit

Rent £877, modelled from 6 nearby lettings

◧ market rent £877 · 6 comps2 empty weeks a year assumed

What if I change my assumptions?The dials

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

Try your own numbersLive

You keep£159/mo

All-in cash£35,057

Payback18.4 yrs

Offer−+

Deposit−+

Mortgage rate−+

Rent−+

Worked at 6.50% — 5.75% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£28,640 + refurb costs

£8,640 of that never comes back — stamp duty, solicitor and lender fees.

£28,640 to buy it

deposit · stamp duty · solicitor · fees~£6,417, unseen

□ 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 £80,000 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

Is the price right?The deeds

Last sold for £79,950 in 2004

Nothing nearby is comparable, and it is asking about what it fetched in 2004.

□ this address’s own deeds, no comparable saleHM Land Registry Price Paid Data

What will the rent borrow?Lender test

The rent carries the whole loan — it could fall 36% and still cover it

Your deposit is what limits this one, not the rent. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£544 needed

of £843 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £843PRA-style test

How big is it, really?The plan

Measured off the plan, not by a surveyor 388 sq ft

The area comes off the plan, not a survey. Open for what that means.

□ area off the floorplan — not a survey

Is it a good location?Open the map

Peterborough, PE8 6BZ

3 of 5 schools in this postcode area rated Good or Outstanding 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 could kill thisThe checks

You would need a licence from the council first

Letting without the council’s licence is an offence, and the fee is in no figure here.

2 problems found · 2 came back clear · 2 we could not check · 3 do not apply to this property

■ from council licensing registerlisting last seen 15 Sep 2026

Which strategy wins?The ways to run it

Nothing here beats a plain let

Let it to the council: £1,068 a year less, but they keep paying when it is empty.

Standard rental+£159 · £35,057 in

Guaranteed council rent+£70 · £35,057 in

Housing-benefit rent−£85 · £35,057 in

Each row: money kept a month, then the cash it ties up. Not compared: Rent by the room (only 1 bedroom) · Do it up, then remortgage (pays back at the remortgage) · Short-stay let (no local short-let data) · Buy, improve & sell (pays out on sale)

◧ 3 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

+£5,886 after five years on the cash you put in, before tax on the sale

More 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 27% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £35,057 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£35,057+£92,932−£2,323−£60,000+£10,335+£5,886

Cash you put inSale valueSelling costsMortgageRent keptYou walk with

◧ 2.0%/yr growth assumed