Scarsdale Way, Grantham
Ground Flat · 2 bed
Supports major UK property portals
Suggested Offer Range
Already 18.2% below the comparable sales mean — limited negotiation margin. Strong value at current asking price.
Property Details
- Asking Price
- £90,000
- Property Type
- Ground Flat
- Bedrooms
- 2
- Bathrooms
- N/A
- Est. Floor Area
- 678 sqft (est.)
- Article 4 Area
- ✓ No restriction — SA permitted under PD rights
This listing is priced below the postcode sector benchmark.
Motivated Seller Analysis
Watch — 5/10Behavioural signals: Below market value
Matched signals:
💸 Mortgage & Financing
| Recommended LTV | 75.0% |
| Indicative Rate | 4.99% |
| Monthly IO Payment | £281 |
| ICR (actual) | 2.65x |
| Feasibility | PASS |
| 💲 Total Cash Required | |
| Purchase Price | £90,000 |
| Deposit (25% — 75% LTV) | £22,500 |
| SDLT (additional property, 5% surcharge) | £4,500 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £29,999 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £90,000 | Loan (75% LTV) | £67,500 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £309 |
| Rent needed (1.5×) | £464/mo | Estimated rent | £745/mo |
| Stress ratio | 2.41× (need ≥ 1.5×) +£281 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 | £1,643 |
| SA net/mo | £1,296 |
| BTL est./mo | £745 |
| SA vs BTL uplift | +£898/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £96,920 | +£6,920 | £25,526 | +£3,026 (3.4%) |
| 5 years | £101,827 | +£11,827 | £29,181 | +£6,681 (7.4%) |
| 7 years | £106,982 | +£16,982 | £33,021 | +£10,521 (11.7%) |
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 | £8,937 | £92,700 | £5,990 | £2,615 | £5,315 | 17.1% |
| Yr 3 | £9,389 | £98,345 | £6,315 | £8,331 | £16,676 | 53.6% |
| Yr 5 | £9,865 | £104,335 | £6,658 | £14,723 | £29,057 | 93.4% |
| Yr 10 | £11,161 | £120,952 | £7,591 | £33,890 | £64,842 | 208.5% |
| Yr 15 | £12,628 | £140,217 | £8,647 | £58,085 | £108,303 | 348.2% |
| Yr 20 | £14,287 | £162,550 | £9,842 | £87,971 | £160,521 | 516.1% |
| Yr 25 | £16,165 | £188,440 | £11,194 | £124,293 | £222,733 | 716.2% |
| Yr 30 | £18,289 | £218,454 | £12,723 | £167,898 | £296,352 | 952.9% |
ROI on Total Cash Invested (deposit + SDLT + acquisition costs). Assumes IO mortgage, no tax, no refinancing. Actual returns will vary.
🌎 Area Profile — NG31 8 ⓘ What are deciles?
📊 Investment Skill Analysis
Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £633 | 8.4% | 5.0% | £9 | -3.9% |
| Conservative | £693 | 9.2% | 6.0% | £139 | 5.8% |
| Base | £745 | 9.9% | 6.7% | £218 | 10.0% |
| Optimistic | £805 | 10.7% | 7.4% | £305 | 14.8% |
| Bull | £879 | 11.7% | 8.4% | £406 | 20.9% |
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●9.93% |
| Net Yield | ●6.66% |
| Net Annual Income | £5,992 |
| Deductions: void 8% (−£715) · mgmt 10% (−£894) · maint 10% (−£894) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £281 |
| Monthly Cashflow (IO) | ●£218 |
| Cash-on-Cash Return | ●8.41% |
| 5-Year IRR | ●10.0% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £4,500 |
| SDLT Effective Rate | 5.0% |
| SDLT (Company) | £4,500 |
| Section 24 Extra Tax/yr (higher rate) | £675 |
| SPV Annual Saving | £1,532 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £104,335 |
| Less: Purchase Price | −£90,000 |
| Less: Buying Costs (SDLT + legal) | −£7,100 |
| Less: Selling Costs (est. 2.5%) | −£2,608 |
| = CGT Net Gain (5yr) | £4,627 |
| CGT at 24% | £390 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £633 | 8.4% | 5.0% | £9 | -3.9% |
| Conservative | £693 | 9.2% | 6.0% | £139 | 5.8% |
| Base | £745 | 9.9% | 6.7% | £218 | 10.0% |
| Optimistic | £805 | 10.7% | 7.4% | £305 | 14.8% |
| Bull | £879 | 11.7% | 8.4% | £406 | 20.9% |