Spenser Road, London, SE24
Apartment · 1 bed
Supports major UK property portals
Suggested Offer Range
Already 34.8% below the comparable sales mean — limited negotiation margin. Strong value at current asking price.
Property Details
- Asking Price
- £400,000
- Property Type
- Apartment
- Bedrooms
- 1
- Bathrooms
- N/A
- Est. Floor Area
- 732 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 — 2/10Behavioural signals: Below market value
💸 Mortgage & Financing
| Recommended LTV | 75.0% |
| Indicative Rate | 4.99% |
| Monthly IO Payment | £1,248 |
| ICR (actual) | 1.5x |
| Feasibility | MARGINAL |
| Notes: Rental coverage 107% — below standard 145% threshold, may need larger deposit | |
| 💲 Total Cash Required | |
| Purchase Price | £400,000 |
| Deposit (25% — 75% LTV) | £100,000 |
| SDLT (additional property, 5% surcharge) | £30,000 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £132,999 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £400,000 | Loan (75% LTV) | £300,000 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £1,375 |
| Rent needed (1.5×) | £2,062/mo | Estimated rent | £1,878/mo |
| Stress ratio | 1.37× (need ≥ 1.5×) £184 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 | £1,485 |
| SA net/mo | £1,157 |
| BTL est./mo | £1,877 |
| SA vs BTL uplift | £-392/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £430,756 | +£30,756 | £116,133 | +£16,133 (4.0%) |
| 5 years | £452,563 | +£52,563 | £132,380 | +£32,380 (8.1%) |
| 7 years | £475,474 | +£75,474 | £149,448 | +£49,448 (12.4%) |
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 | £22,520 | £412,000 | £15,769 | £769 | £12,769 | 9.5% |
| Yr 3 | £23,660 | £437,091 | £16,590 | £3,534 | £40,625 | 30.3% |
| Yr 5 | £24,858 | £463,710 | £17,453 | £8,003 | £71,713 | 53.5% |
| Yr 10 | £28,124 | £537,567 | £19,805 | £27,206 | £164,773 | 122.9% |
| Yr 15 | £31,820 | £623,187 | £22,466 | £59,080 | £282,267 | 210.5% |
| Yr 20 | £36,002 | £722,444 | £25,476 | £105,291 | £427,736 | 319.0% |
| Yr 25 | £40,733 | £837,511 | £28,882 | £167,723 | £605,234 | 451.3% |
| Yr 30 | £46,085 | £970,905 | £32,736 | £248,506 | £819,411 | 611.0% |
ROI on Total Cash Invested (deposit + SDLT + acquisition costs). Assumes IO mortgage, no tax, no refinancing. Actual returns will vary.
🌎 Area Profile — SE24 0 ⓘ What are deciles?
📊 Investment Skill Analysis
Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,596 | 4.8% | 3.0% | £-624 | -13.2% |
| Conservative | £1,747 | 5.2% | 3.6% | £-190 | -2.1% |
| Base | £1,878 | 5.6% | 3.9% | £65 | 2.7% |
| Optimistic | £2,028 | 6.1% | 4.4% | £339 | 8.1% |
| Bull | £2,216 | 6.6% | 4.9% | £647 | 14.9% |
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●5.63% |
| Net Yield | ●3.95% |
| Net Annual Income | £15,781 |
| Deductions: void 8% (−£1,802) · mgmt 10% (−£2,252) · maint 10% (−£2,252) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £1,248 |
| Monthly Cashflow (IO) | ●£67 |
| Cash-on-Cash Return | ●0.58% |
| 5-Year IRR | ●2.7% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £30,000 |
| SDLT Effective Rate | 7.5% |
| SDLT (Company) | £30,000 |
| Section 24 Extra Tax/yr (higher rate) | £3,000 |
| SPV Annual Saving | £4,017 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £463,710 |
| Less: Purchase Price | −£400,000 |
| Less: Buying Costs (SDLT + legal) | −£32,600 |
| Less: Selling Costs (est. 2.5%) | −£11,593 |
| = CGT Net Gain (5yr) | £19,517 |
| CGT at 24% | £3,964 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,596 | 4.8% | 3.0% | £-624 | -13.2% |
| Conservative | £1,747 | 5.2% | 3.6% | £-190 | -2.1% |
| Base | £1,878 | 5.6% | 3.9% | £65 | 2.7% |
| Optimistic | £2,028 | 6.1% | 4.4% | £339 | 8.1% |
| Bull | £2,216 | 6.6% | 4.9% | £647 | 14.9% |