Rented normally, you'd make about £40 a month.

Will it pay?Calculator

£40 of every £713 is yours to keep, each month

You keep 6p of every pound of rent. The mortgage takes 46p.

+£713−£325−£338−£9£40

Rent inMortgageRunning costsTaxProfit

Rent £713, modelled from 6 nearby lettings

◧ market rent £713 · 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£40/mo

All-in cash£38,664

Payback80.3 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

£27,900 + refurb costs

£7,900 of that never comes back — stamp duty, solicitor and lender fees.

£27,900 to buy it

~£10,764

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 £79,999 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 £37,000 in 2018

Nothing nearby is comparable, but asking is 116% more than the £37,000 paid for it in 2018.

□ 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 21% 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 £686 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £686PRA-style test

Is it a good location?Open the map

Burnley, BB10 1UL

2 of 4 schools in this postcode area rated Good or Outstanding and flood risk checking… — open for the map, the schools and the rest.

Article 4Planning permission required to let by the room

■ 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 · 1 came back clear · 4 we could not check · 2 do not apply to this property

■ from council licensing registerlisting last seen 18 Sep 2026

Which strategy wins?The ways to run it

Short-stay let beats Standard rental by £433 a month

Short-stay let also ties up the least cash, £38,664.

Short-stay let+£473 · £38,664 in

4 nearby short-lets within 20 km · low confidence

Standard rental+£40 · £38,664 in

Housing-benefit rent−£194 · £38,664 in

Each row: money kept a month, then the cash it ties up. Not compared: Rent by the room (only 2 bedrooms) · 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)

◧ 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

−£2,406 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 £38,664 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£38,664+£96,050−£2,401−£59,999+£2,608−£2,406

Cash you put inSale valueSelling costsMortgageRent keptYou are down

◧ 2.0%/yr growth assumed