Northbrook Road, Southampton, Hampshire, SO14
Terraced · 5 bed
Supports major UK property portals
Suggested Offer Range
Already 34.2% below the comparable sales mean — limited negotiation margin. Strong value at current asking price.
Property Details
- Asking Price
- £270,000
- Property Type
- Terraced
- Bedrooms
- 5
- Bathrooms
- N/A
- Est. Floor Area
- 1216 sqft (est.)
- Article 4 Area
- ✓ No restriction — SA permitted under PD rights
This listing is priced below the postcode sector benchmark.
Motivated Seller Analysis
Urgent — 8/10Behavioural signals: 153 days on marketBelow market value
Matched signals:
💸 Mortgage & Financing
| Recommended LTV | 75.0% |
| Indicative Rate | 4.99% |
| Monthly IO Payment | £842 |
| ICR (actual) | 1.48x |
| Feasibility | MARGINAL |
| Notes: Rental coverage 105% — below standard 145% threshold, may need larger deposit | |
| 💲 Total Cash Required | |
| Purchase Price | £270,000 |
| Deposit (25% — 75% LTV) | £67,500 |
| SDLT (additional property, 5% surcharge) | £17,000 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £87,499 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £270,000 | Loan (75% LTV) | £202,500 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £928 |
| Rent needed (1.5×) | £1,392/mo | Estimated rent | £1,243/mo |
| Stress ratio | 1.34× (need ≥ 1.5×) £149 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 | £950 |
| SA net/mo | £686 |
| BTL est./mo | £1,242 |
| SA vs BTL uplift | £-292/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £290,760 | +£20,760 | £78,137 | +£10,637 (3.9%) |
| 5 years | £305,480 | +£35,480 | £89,103 | +£21,603 (8.0%) |
| 7 years | £320,945 | +£50,945 | £100,624 | +£33,124 (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 | £14,904 | £278,100 | £10,286 | £161 | £8,261 | 9.3% |
| Yr 3 | £15,659 | £295,036 | £10,829 | £1,294 | £26,330 | 29.7% |
| Yr 5 | £16,451 | £313,004 | £11,400 | £3,555 | £46,559 | 52.5% |
| Yr 10 | £18,613 | £362,857 | £12,956 | £14,522 | £107,380 | 121.2% |
| Yr 15 | £21,059 | £420,651 | £14,717 | £33,875 | £184,527 | 208.3% |
| Yr 20 | £23,826 | £487,650 | £16,710 | £62,717 | £280,367 | 316.4% |
| Yr 25 | £26,957 | £565,320 | £18,964 | £102,293 | £397,613 | 448.8% |
| Yr 30 | £30,500 | £655,361 | £21,515 | £154,015 | £539,376 | 608.8% |
ROI on Total Cash Invested (deposit + SDLT + acquisition costs). Assumes IO mortgage, no tax, no refinancing. Actual returns will vary.
🌎 Area Profile — SO14 3 ⓘ What are deciles?
📊 Investment Skill Analysis
Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,057 | 4.7% | 2.9% | £-447 | -13.3% |
| Conservative | £1,156 | 5.1% | 3.4% | £-156 | -2.0% |
| Base | £1,243 | 5.5% | 3.8% | £14 | 2.8% |
| Optimistic | £1,342 | 6.0% | 4.3% | £197 | 8.3% |
| Bull | £1,467 | 6.5% | 4.8% | £403 | 15.1% |
⚠ Condition Flags
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●5.52% |
| Net Yield | ●3.81% |
| Net Annual Income | £10,295 |
| Deductions: void 8% (−£1,192) · mgmt 10% (−£1,490) · maint 10% (−£1,490) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £842 |
| Monthly Cashflow (IO) | ●£16 |
| Cash-on-Cash Return | ●0.19% |
| 5-Year IRR | ●2.8% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £17,000 |
| SDLT Effective Rate | 6.3% |
| SDLT (Company) | £17,000 |
| Section 24 Extra Tax/yr (higher rate) | £2,025 |
| SPV Annual Saving | £2,706 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £313,004 |
| Less: Purchase Price | −£270,000 |
| Less: Buying Costs (SDLT + legal) | −£19,600 |
| Less: Selling Costs (est. 2.5%) | −£7,825 |
| = CGT Net Gain (5yr) | £15,579 |
| CGT at 24% | £3,019 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,057 | 4.7% | 2.9% | £-447 | -13.3% |
| Conservative | £1,156 | 5.1% | 3.4% | £-156 | -2.0% |
| Base | £1,243 | 5.5% | 3.8% | £14 | 2.8% |
| Optimistic | £1,342 | 6.0% | 4.3% | £197 | 8.3% |
| Bull | £1,467 | 6.5% | 4.8% | £403 | 15.1% |