Grove Road, Romford, RM6
Terraced · 2 bed
Supports major UK property portals
Suggested Offer Range
Already 30.1% below the comparable sales mean — limited negotiation margin. Strong value at current asking price. Note: listed as "Offers Over" — vendor expects full asking price or above.
Property Details
- Asking Price
- £340,000
- Property Type
- Terraced
- Bedrooms
- 2
- Bathrooms
- N/A
- Est. Floor Area
- 926 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: 86 days on marketBelow market value
💸 Mortgage & Financing
| Recommended LTV | 75.0% |
| Indicative Rate | 4.99% |
| Monthly IO Payment | £1,060 |
| ICR (actual) | 1.58x |
| Feasibility | MARGINAL |
| Notes: Rental coverage 112% — below standard 145% threshold, may need larger deposit | |
| 💲 Total Cash Required | |
| Purchase Price | £340,000 |
| Deposit (25% — 75% LTV) | £85,000 |
| SDLT (additional property, 5% surcharge) | £24,000 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £111,999 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £340,000 | Loan (75% LTV) | £255,000 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £1,169 |
| Rent needed (1.5×) | £1,753/mo | Estimated rent | £1,671/mo |
| Stress ratio | 1.43× (need ≥ 1.5×) £82 shortfall | ||
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 | £1,210 |
| SA net/mo | £915 |
| BTL est./mo | £1,672 |
| SA vs BTL uplift | £-462/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £366,143 | +£26,143 | £98,596 | +£13,596 (4.0%) |
| 5 years | £384,679 | +£44,679 | £112,406 | +£27,406 (8.1%) |
| 7 years | £404,153 | +£64,153 | £126,914 | +£41,914 (12.3%) |
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 | £20,060 | £350,200 | £13,998 | £1,248 | £11,448 | 10.1% |
| Yr 3 | £21,076 | £371,527 | £14,729 | £4,837 | £36,364 | 32.2% |
| Yr 5 | £22,142 | £394,153 | £15,498 | £9,943 | £64,096 | 56.7% |
| Yr 10 | £25,052 | £456,932 | £17,593 | £29,863 | £146,794 | 129.8% |
| Yr 15 | £28,344 | £529,709 | £19,963 | £61,069 | £250,778 | 221.7% |
| Yr 20 | £32,069 | £614,078 | £22,645 | £105,047 | £379,124 | 335.2% |
| Yr 25 | £36,283 | £711,884 | £25,679 | £163,472 | £535,357 | 473.3% |
| Yr 30 | £41,051 | £825,269 | £29,112 | £238,246 | £723,515 | 639.7% |
ROI on Total Cash Invested (deposit + SDLT + acquisition costs). Assumes IO mortgage, no tax, no refinancing. Actual returns will vary.
🌎 Area Profile — RM6 5 ⓘ What are deciles?
📊 Investment Skill Analysis
Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,420 | 5.0% | 3.1% | £-495 | -12.4% |
| Conservative | £1,554 | 5.5% | 3.7% | £-118 | -1.4% |
| Base | £1,671 | 5.9% | 4.1% | £104 | 3.4% |
| Optimistic | £1,805 | 6.4% | 4.6% | £342 | 8.8% |
| Bull | £1,972 | 7.0% | 5.2% | £611 | 15.5% |
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●5.9% |
| Net Yield | ●4.12% |
| Net Annual Income | £13,992 |
| Deductions: void 8% (−£1,605) · mgmt 10% (−£2,006) · maint 10% (−£2,006) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £1,060 |
| Monthly Cashflow (IO) | ●£106 |
| Cash-on-Cash Return | ●1.1% |
| 5-Year IRR | ●3.4% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £24,000 |
| SDLT Effective Rate | 7.06% |
| SDLT (Company) | £24,000 |
| Section 24 Extra Tax/yr (higher rate) | £2,550 |
| SPV Annual Saving | £3,557 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £394,153 |
| Less: Purchase Price | −£340,000 |
| Less: Buying Costs (SDLT + legal) | −£26,600 |
| Less: Selling Costs (est. 2.5%) | −£9,854 |
| = CGT Net Gain (5yr) | £17,699 |
| CGT at 24% | £3,528 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,420 | 5.0% | 3.1% | £-495 | -12.4% |
| Conservative | £1,554 | 5.5% | 3.7% | £-118 | -1.4% |
| Base | £1,671 | 5.9% | 4.1% | £104 | 3.4% |
| Optimistic | £1,805 | 6.4% | 4.6% | £342 | 8.8% |
| Bull | £1,972 | 7.0% | 5.2% | £611 | 15.5% |