Rented normally, it costs you £118 a month. That is £1,419 a year, every year you hold it.

Will it pay?Calculator

You top up £118 a month — the mortgage takes 45p of every pound of rent

Borrowing £21,829 less would close that shortfall — which is £21,829 more cash at the start, on top of the deposit.

+£728−£325−£521−£118

Rent inMortgageRunning costsShort by

The rent covers £728 of that — you cover £118

□ 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-£118/mo

All-in cash£33,872

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

£28,200 + refurb costs

And about £7,094 more over five years, because it loses £118 every month you hold it — before any repair. That already assumes the rent never falls.

£28,200 to buy it

deposit · stamp duty · solicitor · fees~£5,672, unseen

□ works not inspected

What would have to be true?The working

£25,000 off and it stops losing money

At the asking price you feed it £118 a month. At £50,891 the rent covers everything — leaving stamp duty of £2,545 at that price.

offer £50,891

asked £80,000

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

Is the price right?The deeds

Last sold for £47,500 in 2019

Nothing nearby is comparable, but asking is 68% more than the £47,500 paid for it in 2019.

□ 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 22% 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 £700 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £700PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 290 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

Leicester City, LE2 1AB

1 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 14 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £118 a month

Let it to the council: £240 a year less, but they keep paying when it is empty.

Standard rental−£118 · £33,872 in

Guaranteed council rent−£138 · £33,872 in

Housing-benefit rent−£304 · £33,872 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

−£11,470 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 £33,872 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£33,872+£92,397−£2,310−£60,000−£7,685−£11,470

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed