Rowanberry Road, Longbenton, NE12
Terraced · 4 bed
Supports major UK property portals
Suggested Offer Range
Already 27.9% below the comparable sales mean — limited negotiation margin. Strong value at current asking price.
Property Details
- Asking Price
- £170,000
- Property Type
- Terraced
- Bedrooms
- 4
- Bathrooms
- N/A
- Est. Floor Area
- 883 sqft (est.)
- Article 4 Area
- ✓ No restriction — SA permitted under PD rights
This listing is priced below the postcode sector benchmark.
Motivated Seller Analysis
Standard — 3/10Behavioural signals: 94 days on market
Matched signals:
💸 Mortgage & Financing
| Recommended LTV | 75.0% |
| Indicative Rate | 4.99% |
| Monthly IO Payment | £530 |
| ICR (actual) | 2.23x |
| Feasibility | PASS |
| 💲 Total Cash Required | |
| Purchase Price | £170,000 |
| Deposit (25% — 75% LTV) | £42,500 |
| SDLT (additional property, 5% surcharge) | £9,400 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £54,899 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £170,000 | Loan (75% LTV) | £127,500 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £584 |
| Rent needed (1.5×) | £877/mo | Estimated rent | £1,185/mo |
| Stress ratio | 2.03× (need ≥ 1.5×) +£308 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 | £1,504 |
| SA net/mo | £1,174 |
| BTL est./mo | £1,184 |
| SA vs BTL uplift | +£320/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £183,071 | +£13,071 | £48,908 | +£6,408 (3.8%) |
| 5 years | £192,339 | +£22,339 | £55,813 | +£13,313 (7.8%) |
| 7 years | £202,077 | +£32,077 | £63,067 | +£20,567 (12.1%) |
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 | £14,212 | £175,100 | £9,788 | £3,413 | £8,513 | 15.2% |
| Yr 3 | £14,931 | £185,764 | £10,306 | £11,012 | £26,775 | 47.8% |
| Yr 5 | £15,687 | £197,077 | £10,850 | £19,686 | £46,763 | 83.5% |
| Yr 10 | £17,749 | £228,466 | £12,334 | £46,440 | £104,906 | 187.3% |
| Yr 15 | £20,081 | £264,854 | £14,013 | £81,191 | £176,045 | 314.4% |
| Yr 20 | £22,720 | £307,039 | £15,913 | £124,989 | £262,028 | 467.9% |
| Yr 25 | £25,706 | £355,942 | £18,063 | £179,024 | £364,966 | 651.7% |
| Yr 30 | £29,084 | £412,635 | £20,495 | £244,641 | £487,275 | 870.1% |
ROI on Total Cash Invested (deposit + SDLT + acquisition costs). Assumes IO mortgage, no tax, no refinancing. Actual returns will vary.
🌎 Area Profile — NE12 8 ⓘ What are deciles?
📊 Investment Skill Analysis
Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,007 | 7.1% | 4.4% | £-73 | -6.1% |
| Conservative | £1,102 | 7.8% | 5.2% | £150 | 4.0% |
| Base | £1,185 | 8.4% | 5.8% | £285 | 8.5% |
| Optimistic | £1,280 | 9.0% | 6.4% | £432 | 13.5% |
| Bull | £1,398 | 9.9% | 7.2% | £601 | 19.9% |
⚠ Condition Flags
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●8.36% |
| Net Yield | ●5.76% |
| Net Annual Income | £9,793 |
| Deductions: void 8% (−£1,137) · mgmt 10% (−£1,421) · maint 10% (−£1,421) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £530 |
| Monthly Cashflow (IO) | ●£286 |
| Cash-on-Cash Return | ●6.1% |
| 5-Year IRR | ●8.5% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £9,400 |
| SDLT Effective Rate | 5.53% |
| SDLT (Company) | £9,400 |
| Section 24 Extra Tax/yr (higher rate) | £1,275 |
| SPV Annual Saving | £2,421 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £197,077 |
| Less: Purchase Price | −£170,000 |
| Less: Buying Costs (SDLT + legal) | −£12,000 |
| Less: Selling Costs (est. 2.5%) | −£4,927 |
| = CGT Net Gain (5yr) | £10,150 |
| CGT at 24% | £1,716 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,007 | 7.1% | 4.4% | £-73 | -6.1% |
| Conservative | £1,102 | 7.8% | 5.2% | £150 | 4.0% |
| Base | £1,185 | 8.4% | 5.8% | £285 | 8.5% |
| Optimistic | £1,280 | 9.0% | 6.4% | £432 | 13.5% |
| Bull | £1,398 | 9.9% | 7.2% | £601 | 19.9% |