Lynmouth Avenue, Morden, SM4
Terraced · 4 bed
Supports major UK property portals
Suggested Offer Range
Already 13.1% below the comparable sales mean — some negotiation possible but limited margin. Note: listed as "Offers Over" — vendor expects full asking price or above.
Property Details
- Asking Price
- £500,000
- Property Type
- Terraced
- Bedrooms
- 4
- Bathrooms
- N/A
- Est. Floor Area
- 936 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 | £1,559 |
| ICR (actual) | 2.02x |
| Feasibility | MARGINAL |
| Notes: Rental coverage 144% — below standard 145% threshold, may need larger deposit | |
| 💲 Total Cash Required | |
| Purchase Price | £500,000 |
| Deposit (25% — 75% LTV) | £125,000 |
| SDLT (additional property, 5% surcharge) | £40,000 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £167,999 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £500,000 | Loan (75% LTV) | £375,000 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £1,719 |
| Rent needed (1.5×) | £2,578/mo | Estimated rent | £3,151/mo |
| Stress ratio | 1.83× (need ≥ 1.5×) +£573 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 | £1,288 |
| SA net/mo | £983 |
| BTL est./mo | £3,150 |
| SA vs BTL uplift | £-1,862/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £538,445 | +£38,445 | £145,362 | +£20,362 (4.1%) |
| 5 years | £565,704 | +£65,704 | £165,670 | +£40,670 (8.1%) |
| 7 years | £594,343 | +£94,343 | £187,005 | +£62,005 (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 | £37,800 | £515,000 | £26,771 | £8,021 | £23,021 | 13.6% |
| Yr 3 | £39,714 | £546,364 | £28,149 | £26,121 | £72,485 | 42.9% |
| Yr 5 | £41,724 | £579,637 | £29,596 | £47,081 | £126,718 | 74.9% |
| Yr 10 | £47,207 | £671,958 | £33,544 | £112,961 | £284,919 | 168.5% |
| Yr 15 | £53,410 | £778,984 | £38,010 | £200,110 | £479,094 | 283.3% |
| Yr 20 | £60,429 | £903,056 | £43,064 | £311,323 | £714,379 | 422.5% |
| Yr 25 | £68,370 | £1,046,889 | £48,781 | £449,763 | £996,652 | 589.4% |
| Yr 30 | £77,354 | £1,213,631 | £55,250 | £619,006 | £1,332,637 | 788.1% |
ROI on Total Cash Invested (deposit + SDLT + acquisition costs). Assumes IO mortgage, no tax, no refinancing. Actual returns will vary.
🌎 Area Profile — SM4 4 ⓘ What are deciles?
📊 Investment Skill Analysis
Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £2,678 | 6.4% | 4.1% | £-327 | -8.1% |
| Conservative | £2,930 | 7.0% | 4.8% | £295 | 2.0% |
| Base | £3,151 | 7.6% | 5.4% | £669 | 6.5% |
| Optimistic | £3,403 | 8.2% | 6.0% | £1,075 | 11.6% |
| Bull | £3,718 | 8.9% | 6.7% | £1,539 | 18.1% |
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●7.56% |
| Net Yield | ●5.36% |
| Net Annual Income | £26,780 |
| Deductions: void 8% (−£3,024) · mgmt 10% (−£3,780) · maint 10% (−£3,780) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £1,559 |
| Monthly Cashflow (IO) | ●£673 |
| Cash-on-Cash Return | ●4.75% |
| 5-Year IRR | ●6.5% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £40,000 |
| SDLT Effective Rate | 8.0% |
| SDLT (Company) | £40,000 |
| Section 24 Extra Tax/yr (higher rate) | £3,750 |
| SPV Annual Saving | £6,342 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £579,637 |
| Less: Purchase Price | −£500,000 |
| Less: Buying Costs (SDLT + legal) | −£42,600 |
| Less: Selling Costs (est. 2.5%) | −£14,491 |
| = CGT Net Gain (5yr) | £22,546 |
| CGT at 24% | £4,691 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £2,678 | 6.4% | 4.1% | £-327 | -8.1% |
| Conservative | £2,930 | 7.0% | 4.8% | £295 | 2.0% |
| Base | £3,151 | 7.6% | 5.4% | £669 | 6.5% |
| Optimistic | £3,403 | 8.2% | 6.0% | £1,075 | 11.6% |
| Bull | £3,718 | 8.9% | 6.7% | £1,539 | 18.1% |