Register as Investor Get Criteria Pack
Home About Services Deal Examples Investor Registration Criteria Pack FAQ Contact Register as Investor Get Criteria Pack

Deal Examples

How we model, stress-test, and present deals.

The following are illustrative examples for educational and qualification purposes unless explicitly marked as real completed deals. They are based on stated assumptions and are not guarantees of future performance.

How to read these numbers

Every deal is presented with the same cost structure so you can compare like-for-like. Key terms used throughout:

Void allowance% of annual rent assumed as lost income to cover empty periods
Maintenance allowanceAnnual provision for repairs and upkeep
Management costsLetting and management fees as % of collected rent
Stress testInterest rate increased to evaluate cashflow resilience
Yield on cash remainingNet cashflow after finance divided by capital left in deal post-refinance

Example Deal 1 – Buy, Refurbish, Refinance, Hold

Illustrative

Capital & Refinance

Purchase price£120,000
Refurb cost£18,000
Purchase + legal + stamp + broker costs£7,500
Total cash invested upfront£145,500
Refinance valuation after works£170,000
Refinance at 75% LTV£127,500
Deposit returned after refinance£90,000
Cash remaining in the deal£55,500
Equity position at refinance£42,500
Monthly rent£1,150
Annual gross rent£13,800

Operating Assumptions

Void allowance (5%)£690
Maintenance allowance (8%)£1,104
Management (10% + VAT, ~12%)£1,656
Finance: interest-only £127,500 at 5.8%£7,395/yr

Net Income & Yield

Net operating income before finance£10,350
Net cashflow after finance£2,955/yr
Yield on cash remaining5.32%
Interest stress test (7.2%): annual finance cost rises to £9,180; net cashflow reduces to £1,170/year; stressed yield on cash remaining falls to 2.11%.
Downside scenario: if refinance valuation lands at £160,000 (not £170,000), the new loan at 75% LTV is £120,000, cash returned reduces by £7,500, cash remaining rises to £63,000, and at base cashflow of £2,955 the yield on cash remaining drops to 4.69%.

Example Deal 2 – Buy and Hold

Illustrative

Capital & Refinance

Purchase price£95,000
Refurb cost£10,000
Purchase + legal + stamp + broker costs£6,000
Total cash invested upfront£111,000
Refinance valuation after stabilisation£125,000
Refinance at 75% LTV£93,750
Deposit returned after refinance£66,000
Cash remaining in the deal£45,000
Equity position at refinance£31,250
Monthly rent£995
Annual gross rent£11,940

Operating Assumptions

Void allowance (6%)£716
Maintenance allowance (10%)£1,194
Management (10% + VAT, ~12%)£1,433
Finance: interest-only £93,750 at 6.1%£5,719/yr

Net Income & Yield

Net operating income before finance£8,597
Net cashflow after finance£2,878/yr
Yield on cash remaining6.40%
Interest stress test (7.5%): annual finance cost rises to £7,031; net cashflow reduces to £1,566/year; stressed yield on cash remaining falls to 3.48%.
Downside scenario: if rent settles at £925/month instead of £995/month, annual gross rent falls to £11,100, recalculated net cashflow after finance is £2,139/year, and yield on cash remaining falls to 4.75%.

Side-by-side comparison

MetricDeal 1 (BRRH)Deal 2 (Buy & Hold)
Total cash in upfront£145,500£111,000
Cash remaining post-refinance£55,500£45,000
Net annual cashflow£2,955£2,878
Yield on cash remaining5.32%6.40%
Stressed yield2.11%3.48%
Equity at refinance£42,500£31,250

A deal can still be viable under stress if it remains cashflow positive and aligned with long-term strategy, but suitability depends on your risk tolerance, liquidity buffer, and financing constraints. These examples are not offers or recommendations.

Register as an Investor