Clausentum Road, Southampton, SO14
Terraced · 3 bed
Supports major UK property portals
Suggested Offer Range
Already 31.7% below the comparable sales mean — limited negotiation margin. Strong value at current asking price.
Property Details
- Asking Price
- £280,000
- Property Type
- Terraced
- Bedrooms
- 3
- 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
Standard — 1/10Behavioural signals: 84 days on market
💸 Mortgage & Financing
| Recommended LTV | 75.0% |
| Indicative Rate | 4.99% |
| Monthly IO Payment | £873 |
| ICR (actual) | 1.53x |
| Feasibility | MARGINAL |
| Notes: Rental coverage 109% — below standard 145% threshold, may need larger deposit | |
| 💲 Total Cash Required | |
| Purchase Price | £280,000 |
| Deposit (25% — 75% LTV) | £70,000 |
| SDLT (additional property, 5% surcharge) | £18,000 |
| Legal fees (est.) | £1,500 |
| Survey (est.) | £500 |
| Arrangement fee (est.) | £999 |
| Total cash required | £90,999 |
Legal and survey fees are estimates. SDLT applies 5% additional-property surcharge (Oct 2024 Budget). Not financial advice.
🔄 BRR Refinance Stress Test
| Purchase price | £280,000 | Loan (75% LTV) | £210,000 |
| Rate (IO) | 5.5% p.a. | Monthly interest | £962 |
| Rent needed (1.5×) | £1,444/mo | Estimated rent | £1,339/mo |
| Stress ratio | 1.39× (need ≥ 1.5×) £105 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 | £1,339 |
| SA vs BTL uplift | £-389/mo |
| Hold Period | Est. Sale Price | Capital Gain | Net Proceeds | Total Return |
|---|---|---|---|---|
| 3 years | £301,529 | +£21,529 | £81,059 | +£11,059 (3.9%) |
| 5 years | £316,794 | +£36,794 | £92,432 | +£22,432 (8.0%) |
| 7 years | £332,832 | +£52,832 | £104,380 | +£34,380 (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 | £16,072 | £288,400 | £11,127 | £627 | £9,027 | 9.8% |
| Yr 3 | £16,886 | £305,964 | £11,713 | £2,756 | £28,719 | 31.2% |
| Yr 5 | £17,740 | £324,597 | £12,328 | £6,100 | £50,697 | 55.0% |
| Yr 10 | £20,072 | £376,297 | £14,007 | £20,194 | £116,490 | 126.5% |
| Yr 15 | £22,709 | £436,231 | £15,906 | £43,330 | £199,561 | 216.7% |
| Yr 20 | £25,694 | £505,711 | £18,054 | £76,699 | £302,410 | 328.3% |
| Yr 25 | £29,070 | £586,258 | £20,485 | £121,643 | £427,901 | 464.6% |
| Yr 30 | £32,890 | £679,633 | £23,236 | £179,685 | £579,319 | 629.0% |
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 | £1,138 | 4.9% | 3.0% | £-435 | -12.8% |
| Conservative | £1,245 | 5.3% | 3.6% | £-128 | -1.6% |
| Base | £1,339 | 5.7% | 4.0% | £52 | 3.2% |
| Optimistic | £1,446 | 6.2% | 4.4% | £246 | 8.7% |
| Bull | £1,580 | 6.8% | 5.0% | £464 | 15.5% |
Detailed Analysis
💸 Yield & Returns
| Gross Yield | ●5.74% |
| Net Yield | ●3.97% |
| Net Annual Income | £11,124 |
| Deductions: void 8% (−£1,286) · mgmt 10% (−£1,607) · maint 10% (−£1,607) · fixed costs ins.+gas+EPC (−£445) | |
| Monthly IO Mortgage | £873 |
| Monthly Cashflow (IO) | ●£54 |
| Cash-on-Cash Return | ●0.68% |
| 5-Year IRR | ●3.2% |
● Above benchmark ● Near benchmark ● Below benchmark
💰 Tax Analysis
| SDLT (Additional Property) | £18,000 |
| SDLT Effective Rate | 6.43% |
| SDLT (Company) | £18,000 |
| Section 24 Extra Tax/yr (higher rate) | £2,100 |
| SPV Annual Saving | £2,886 |
| SPV Breakeven | — yrs |
| CGT Projected Sale (5yr) | £324,597 |
| Less: Purchase Price | −£280,000 |
| Less: Buying Costs (SDLT + legal) | −£20,600 |
| Less: Selling Costs (est. 2.5%) | −£8,115 |
| = CGT Net Gain (5yr) | £15,882 |
| CGT at 24% | £3,092 |
📈 Scenario Analysis
| Scenario | Monthly Rent | Gross Yield | Net Yield | Cashflow/mo | IRR 5yr |
|---|---|---|---|---|---|
| Bear | £1,138 | 4.9% | 3.0% | £-435 | -12.8% |
| Conservative | £1,245 | 5.3% | 3.6% | £-128 | -1.6% |
| Base | £1,339 | 5.7% | 4.0% | £52 | 3.2% |
| Optimistic | £1,446 | 6.2% | 4.4% | £246 | 8.7% |
| Bull | £1,580 | 6.8% | 5.0% | £464 | 15.5% |