The model
Move it, and watch it break.
A 3-bed terrace in Leeds, modelled live on the same engine as the product.
Live model3-bed terrace · Leeds LS6
£185,000
£90,000£400,000
£1,295
£450£2,400
5.25%
2.00%10.00%
70%
0%85%
2 weeks
0 weeks12 weeks
Slider ranges are bounded by what UK lending and letting markets have historically produced, so the worst case stays credible.
Monthly cashflow
£425
£5,104 per year
Net yield
6.43%
8.40% gross
Lender ICR
218%
Passes the 145% test at 5.50%
Cash required
£69,645
Deposit £55,500 · SDLT £10,450
Net cashflow, five years
Y1Y2Y3Y4Y5
Value at year five
£214,466
at 3% growth, from £185,000
Break-even rate
9.19%
394 bps of headroom
Verdict · Holds
Cashflow survives to 9.19%, giving 394 basis points of headroom. Over five years the deal returns £54,376 on £69,645 invested, including the modelled sale.
Indicative and illustrative only. Assumes interest-only borrowing, 10% management, 8% maintenance, £350 insurance, 3% rent, cost and capital growth, 2% selling costs on the year-five value, and England additional-property stamp duty including the 5% surcharge.