The Avenue, Southampton, Hampshire, SO17
Flat · 1 bed
Supports major UK property portals
Suggested Offer Range
Already 26.8% below the comparable sales mean — limited negotiation margin. Strong value at current asking price.
Property Details
- Asking Price
- £140,000
- Property Type
- Flat
- Bedrooms
- 1
- Bathrooms
- N/A
- Est. Floor Area
- 646 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 | £437 |
| ICR (actual) | 1.99x |
| Feasibility | MARGINAL |
| Notes: Rental coverage 142% — below standard 145% threshold, may need larger deposit | |
| 💲 Total Cash Required | |
| Purchase Price | £140,000 |
| Deposit (25% — 75% LTV) | £35,000 |
| SDLT (additional property, 5% surcharge) | £7,300 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £45,299 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £140,000 | Loan (75% LTV) | £105,000 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £481 |
| Rent needed (1.5×) | £722/mo | Estimated rent | £870/mo |
| Stress ratio | 1.81× (need ≥ 1.5×) +£148 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 | £1,161 |
| SA net/mo | £872 |
| BTL est./mo | £870 |
| SA vs BTL uplift | +£291/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £150,765 | +£10,765 | £40,140 | +£5,140 (3.7%) |
| 5 years | £158,397 | +£18,397 | £45,826 | +£10,826 (7.7%) |
| 7 years | £166,416 | +£26,416 | £51,800 | +£16,800 (12.0%) |
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 | £10,444 | £144,200 | £7,075 | £1,825 | £6,025 | 13.0% |
| Yr 3 | £10,973 | £152,982 | £7,455 | £6,043 | £19,024 | 41.0% |
| Yr 5 | £11,528 | £162,298 | £7,855 | £11,051 | £33,349 | 71.9% |
| Yr 10 | £13,043 | £188,148 | £8,946 | £27,296 | £75,444 | 162.6% |
| Yr 15 | £14,757 | £218,115 | £10,180 | £49,417 | £127,533 | 274.9% |
| Yr 20 | £16,696 | £252,856 | £11,576 | £78,188 | £191,043 | 411.7% |
| Yr 25 | £18,890 | £293,129 | £13,156 | £114,480 | £267,609 | 576.7% |
| Yr 30 | £21,373 | £339,817 | £14,943 | £159,284 | £359,101 | 773.9% |
ROI on Total Cash Invested (deposit + SDLT + acquisition costs). Assumes IO mortgage, no tax, no refinancing. Actual returns will vary.
🌎 Area Profile — SO17 1 ⓘ What are deciles?
📊 Investment Skill Analysis
Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £740 | 6.3% | 3.8% | £-125 | -8.9% |
| Conservative | £809 | 6.9% | 4.5% | £48 | 1.8% |
| Base | £870 | 7.5% | 5.1% | £152 | 6.3% |
| Optimistic | £940 | 8.1% | 5.6% | £264 | 11.5% |
| Bull | £1,027 | 8.8% | 6.4% | £393 | 18.0% |
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●7.46% |
| Net Yield | ●5.05% |
| Net Annual Income | £7,072 |
| Deductions: void 8% (−£836) · mgmt 10% (−£1,044) · maint 10% (−£1,044) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £437 |
| Monthly Cashflow (IO) | ●£152 |
| Cash-on-Cash Return | ●3.93% |
| 5-Year IRR | ●6.3% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £7,300 |
| SDLT Effective Rate | 5.21% |
| SDLT (Company) | £7,300 |
| Section 24 Extra Tax/yr (higher rate) | £1,050 |
| SPV Annual Saving | £1,835 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £162,298 |
| Less: Purchase Price | −£140,000 |
| Less: Buying Costs (SDLT + legal) | −£9,900 |
| Less: Selling Costs (est. 2.5%) | −£4,057 |
| = CGT Net Gain (5yr) | £8,341 |
| CGT at 24% | £1,282 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £740 | 6.3% | 3.8% | £-125 | -8.9% |
| Conservative | £809 | 6.9% | 4.5% | £48 | 1.8% |
| Base | £870 | 7.5% | 5.1% | £152 | 6.3% |
| Optimistic | £940 | 8.1% | 5.6% | £264 | 11.5% |
| Bull | £1,027 | 8.8% | 6.4% | £393 | 18.0% |