Rented normally, it costs you £334 a month. That is £4,003 a year, every year you hold it.

Will it pay?Calculator

You top up £334 a month — the mortgage takes 87p of every pound of rent

Borrowing £61,586 less would close that shortfall — which is £61,586 more cash at the start, on top of the deposit.

+£2,217−£1,930−£621−£334

Rent inMortgageRunning costsShort by

The rent covers £2,217 of that — you cover £334

◧ market rent £2,217 · 15 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-£334/mo

All-in cash£189,703

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

£166,525 + refurb costs

And about £20,015 more over five years, because it loses £334 every month you hold it — before any repair. That already assumes the rent never falls.

£166,525 to buy it

deposit · stamp duty · solicitor · fees~£23,178, unseen

□ works not inspected

What would have to be true?The working

£80,000 off and it stops losing money

At the asking price you feed it £334 a month. At £392,849 the rent covers everything — leaving stamp duty of £29,285 at that price.

offer £392,849

asked £475,000

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

Can we trust the rent?Rent evidence

Nearby lettings back this rent

We hold too few nearby asking rents to cross-check this figure, so nothing here confirms it a second way.

+5 more

our bar: 10 within 500 m

our own middle half£2,044–£2,405/mo

■ 15 lettings within 1 km□ no nearby asks to cross-checkAdvertised rents, not signed tenancies

What will the rent borrow?Lender test

The rent carries £235,225 of the £356,250 loan

That £121,025 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 gap is £83,388. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£3,229 needed

more than the £2,132 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £2,132PRA-style test

How big is it, really?The plan

The plan and the advert, side by side 1,054 sq ft

Two figures for this house, and neither is a survey. Open for both.

AdvertFloorplan

1k sq ft1k sq ft1.1k sq ft

1,023 sq ft1,064 sq ft

neither is a survey — a tape measure settles it

□ area off the floorplan — not a survey

Is it a good location?Open the map

Ilford, IG1 2HR

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 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 · 5 we could not check · 1 does not apply to this property

■ from the Renters’ Rights Act 2025listing last seen 19 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £334 a month

Let it to the council: £3,564 a year less, but they keep paying when it is empty.

Standard rental−£334 · £189,703 in

Short-stay let−£625 · £189,703 in

17 nearby short-lets within 5.5 km · low confidence

Guaranteed council rent−£631 · £189,703 in

Rent by the room−£671 · £215,703 in

Housing-benefit rent−£1,015 · £189,703 in

Each row: money kept a month, then the cash it ties up. Not compared: Do it up, then remortgage (pays back at the remortgage) · Buy, improve & sell (pays out on sale)

◧ 5 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

−£40,090 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 25% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £189,703 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£189,703+£541,072−£13,527−£356,250−£21,682−£40,090

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed