Rented normally, you'd make about £680 a month, if it can be let.

Will it pay?Calculator

£680 of every £2,094 is yours to keep, each month

You keep 32p of every pound of rent. The mortgage takes 31p.

+£2,094−£650−£605−£160£680

Rent inMortgageRunning costsTaxProfit

Rent £2,094, modelled from 5 nearby lettings

◧ market rent £2,094 · 5 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£680/mo

All-in cash£73,258

Payback9.0 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

£53,800 + refurb costs

£13,800 of that never comes back — stamp duty, solicitor and lender fees.

£53,800 to buy it

~£19,458

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 £160,000 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

What will the rent borrow?Lender test

The rent carries the whole loan — it could fall 46% 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.

£1,088 needed

of £2,013 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £2,013PRA-style test

Is it a good location?Open the map

Luton, LU1 3EY

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 · 1 came back clear · 6 we could not check

■ from council licensing registerlisting last seen 18 Sep 2026

Which strategy wins?The ways to run it

Nothing here beats a plain let

Let it to the council: £2,760 a year less, but they keep paying when it is empty.

Standard rental+£680 · £73,258 in

Rent by the room+£617 · £107,258 in

Guaranteed council rent+£450 · £73,258 in

Housing-benefit rent+£125 · £73,258 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) · Short-stay let (no local short-let data) · Buy, improve & sell (pays out on sale)

◧ 4 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

+£36,779 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 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 £73,258 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£73,258+£190,617−£4,765−£120,000+£44,185+£36,779

Cash you put inSale valueSelling costsMortgageRent keptYou walk with

◧ 2.0%/yr growth assumed