Rented normally, it costs you £34 a month. That is £409 a year, every year you hold it.

Will it pay?Calculator

You top up £34 a month — the mortgage takes 51p of every pound of rent

Borrowing £6,292 less would close that shortfall — which is £6,292 more cash at the start, on top of the deposit.

+£1,126−£569−£591−£34

Rent inMortgageRunning costsShort by

The rent covers £1,126 of that — you cover £34

□ service charge not published2 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-£34/mo

All-in cash£56,369

PaybackNever

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

£47,100 + refurb costs

And about £2,045 more over five years, because it loses £34 every month you hold it — before any repair. That already assumes the rent never falls.

£47,100 to buy it

deposit · stamp duty · solicitor · fees~£9,269, unseen

□ works not inspected

What would have to be true?The working

£5,000 off and it stops losing money

At the asking price you feed it £34 a month. At £131,605 the rent covers everything — leaving land transaction tax of £6,580 at that price.

offer £131,605

asked £140,000

◧ worked back from the rent■ land transaction tax re-bandedrounded down to £5,000 — the rent it works back from is an estimate

What will the rent borrow?Lender test

The rent carries the whole loan — it could fall 12% 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.

£952 needed

of £1,083 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £1,083PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 505 sq ft

Only the agent’s figure exists for this house. Open for what that means.

□ area unchecked — agent’s own

Is it a good location?Open the map

No school rated Good or better in this postcode area

5 schools in this postcode area, none rated Good or better 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 · 2 came back clear · 4 we could not check · 2 do not apply to this property

■ from the Renters’ Rights Act 2025listing last seen 24 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £34 a month

Standard rental also ties up the least cash, £56,369.

Standard rental−£34 · £56,369 in

Housing-benefit rent−£566 · £56,369 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) · Guaranteed council rent (no scheme in this borough) · Buy, improve & sell (pays out on sale)

◧ 2 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

−£6,392 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 26% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £56,369 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£56,369+£161,223−£4,031−£105,000−£2,215−£6,392

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed