Property planning guides

Understand the numbers behind a rental-property plan.

What does 75% LTV mean?

Loan-to-value is the mortgage divided by the property value. A £150,000 loan on a £200,000 property has 75% LTV and £50,000 equity. Purchase fees and refurbishment require additional cash; they are not covered by that deposit calculation.

Model deposits and buying costs.

Yield is different from cash flow

Gross yield compares annual rent with property value. It leaves out costs. Net operating yield deducts running costs; monthly cash flow also deducts mortgage payments. Two properties with the same gross yield can have very different cash flow.

Calculate rental yield or work through monthly cash flow.

How much cash does a purchase need?

Add the deposit, Stamp Duty, legal and mortgage fees, survey and refurbishment budget. Keep a separate reserve for unexpected bills or empty periods. The calculator does not automatically release equity to fund another purchase.

Estimate the Stamp Duty component.

How many rentals might support an income target?

Start with dependable cash flow per property rather than headline rent. Account for existing income, then test what happens with higher costs or lower rent. A target reached in one forecast month may not remain affordable in later months.

Explore retirement income scenarios and include your existing portfolio.