Rented normally, it costs you £321 a month. That is £3,851 a year, every year you hold it.

Will it pay?Calculator

You top up £321 a month — the mortgage takes 86p of every pound of rent

Borrowing £59,241 less would close that shortfall — which is £59,241 more cash at the start, on top of the deposit.

+£2,136−£1,828−£629−£321

Rent inMortgageRunning costsShort by

The rent covers £2,136 of that — you cover £321

◧ market rent £2,136 · 9 comps2 empty weeks a year assumed

What if I change my assumptions?The dials

At the asking price, 25% deposit, 6.50% charged

Change any of these 16 and every card on this page changes with it. The 6.50% is the 5.75% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£157,400 + refurb costs

And about £19,253 more over five years, because it loses £321 every month you hold it — before any repair. That already assumes the rent never falls.

£157,400 to buy it

~£45,241

deposit · stamp duty · solicitor · feeswe haven’t been inside

□ works not inspected

What would have to be true?The working

£75,000 off and it stops losing money

At the asking price you feed it £321 a month. At £370,986 the rent covers everything — leaving stamp duty of £27,099 at that price.

offer £370,986

asked £450,000

◧ worked back from the rent■ stamp duty 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 £226,631 of the £337,500 loan

That £110,869 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 £74,608. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£3,059 needed

more than the £2,054 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £2,054PRA-style test

How big is it, really?The plan

The rooms are on the plan; the total is not

The plan is on file; the floor area is not.

□ no floor area published

Is it a good location?Open the map

Croydon, CR0 2UG

2 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 · 5 we could not check · 1 does not apply to this property

■ from council licensing registerlisting last seen 13 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Standard rental loses least, at £321 a month

Let it to the council: £2,712 a year less, but they keep paying when it is empty.

Standard rental−£321 · £202,641 in

Rent by the room−£422 · £228,641 in

Guaranteed council rent−£547 · £202,641 in

Housing-benefit rent−£930 · £202,641 in

Short-stay let−£1,222 · £202,641 in

43 nearby short-lets within 11.1 km · medium confidence

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

−£44,926 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 28% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £202,641 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£202,641+£529,304−£13,233−£337,500−£20,856−£44,926

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed