Cheadle Avenue, Wallsend, NE28
End of Terrace · 3 bed
Supports major UK property portals
Suggested Offer Range
Already 15.9% below the comparable sales mean — limited negotiation margin. Strong value at current asking price.
Property Details
- Asking Price
- £140,000
- Property Type
- End of Terrace
- Bedrooms
- 3
- Bathrooms
- N/A
- Est. Floor Area
- 893 sqft (est.)
- Article 4 Area
- ✓ No restriction — SA permitted under PD rights
This listing is priced below the postcode sector benchmark.
💸 Mortgage & Financing
| Recommended LTV | 75.0% |
| Indicative Rate | 4.99% |
| Monthly IO Payment | £437 |
| ICR (actual) | 2.0x |
| Feasibility | MARGINAL |
| Notes: Rental coverage 143% — below standard 145% threshold, may need larger deposit | |
| 💲 Total Cash Required | |
| Purchase Price | £140,000 |
| Deposit (25% — 75% LTV) | £35,000 |
| SDLT (additional property, 5% surcharge) | £7,300 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £45,299 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £140,000 | Loan (75% LTV) | £105,000 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £481 |
| Rent needed (1.5×) | £722/mo | Estimated rent | £872/mo |
| Stress ratio | 1.81× (need ≥ 1.5×) +£150 surplus | ||
Assumptions: 75% LTV · 5.5% interest only · 1.5× rent coverage (standard lender requirement). Actual lender criteria vary — verify with your broker.
Exit Strategy
Capital appreciation projections at 2.5% pa (local Land Registry HPI). Assumes 75% LTV interest-only mortgage redeemed on sale. Excludes rental income.
| Est. reno cost | Unknown — score listing |
| Cash left in deal | Unknown |
| SA gross/mo | £966 |
| SA net/mo | £700 |
| BTL est./mo | £872 |
| SA vs BTL uplift | +£94/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £150,765 | +£10,765 | £40,140 | +£5,140 (3.7%) |
| 5 years | £158,397 | +£18,397 | £45,826 | +£10,826 (7.7%) |
| 7 years | £166,416 | +£26,416 | £51,800 | +£16,800 (12.0%) |
Projections: 2.5% pa HPI, 75% LTV IO mortgage redeemed at sale, 1.5% EA, £1,500 legal, 24% CGT above £3k allowance. Not financial advice.
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📈 Rental Yield & ROI Forecast
Compound-growth projection: 2.5% annual rent growth + 3% capital growth. IO mortgage throughout. For illustration only.
| Year | Est. Rent/yr | Est. Value | Net Income/yr | Cum. Cashflow | Total Return | ROI on Cash Invested |
|---|---|---|---|---|---|---|
| Yr 1 | £10,458 | £144,200 | £7,085 | £1,835 | £6,035 | 13.0% |
| Yr 3 | £10,987 | £152,982 | £7,466 | £6,074 | £19,055 | 41.1% |
| Yr 5 | £11,544 | £162,298 | £7,866 | £11,104 | £33,402 | 72.0% |
| Yr 10 | £13,061 | £188,148 | £8,959 | £27,409 | £75,557 | 162.8% |
| Yr 15 | £14,777 | £218,115 | £10,194 | £49,598 | £127,714 | 275.2% |
| Yr 20 | £16,719 | £252,856 | £11,592 | £78,445 | £191,301 | 412.3% |
| Yr 25 | £18,916 | £293,129 | £13,174 | £114,825 | £267,954 | 577.5% |
| Yr 30 | £21,401 | £339,817 | £14,964 | £159,727 | £359,544 | 774.9% |
ROI on Total Cash Invested (deposit + SDLT + acquisition costs). Assumes IO mortgage, no tax, no refinancing. Actual returns will vary.
🌎 Area Profile — NE28 9 ⓘ What are deciles?
📊 Investment Skill Analysis
Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £741 | 6.4% | 3.8% | £-124 | -8.8% |
| Conservative | £811 | 7.0% | 4.5% | £49 | 1.8% |
| Base | £872 | 7.5% | 5.1% | £153 | 6.3% |
| Optimistic | £942 | 8.1% | 5.7% | £266 | 11.5% |
| Bull | £1,029 | 8.8% | 6.4% | £395 | 18.0% |
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●7.47% |
| Net Yield | ●5.06% |
| Net Annual Income | £7,089 |
| Deductions: void 8% (−£837) · mgmt 10% (−£1,046) · maint 10% (−£1,046) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £437 |
| Monthly Cashflow (IO) | ●£154 |
| Cash-on-Cash Return | ●3.96% |
| 5-Year IRR | ●6.3% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £7,300 |
| SDLT Effective Rate | 5.21% |
| SDLT (Company) | £7,300 |
| Section 24 Extra Tax/yr (higher rate) | £1,050 |
| SPV Annual Saving | £1,838 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £162,298 |
| Less: Purchase Price | −£140,000 |
| Less: Buying Costs (SDLT + legal) | −£9,900 |
| Less: Selling Costs (est. 2.5%) | −£4,057 |
| = CGT Net Gain (5yr) | £8,341 |
| CGT at 24% | £1,282 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £741 | 6.4% | 3.8% | £-124 | -8.8% |
| Conservative | £811 | 7.0% | 4.5% | £49 | 1.8% |
| Base | £872 | 7.5% | 5.1% | £153 | 6.3% |
| Optimistic | £942 | 8.1% | 5.7% | £266 | 11.5% |
| Bull | £1,029 | 8.8% | 6.4% | £395 | 18.0% |