UK DatabaseListingsMarlborough Street North, South Shields, NE33
Yield Trap Advisory: High CapEx Risk (Sub-£100k Regional)

Properties listed under £100,000 boasting 33% gross yields frequently require substantial capital expenditure (£15,000 to £30,000+) in structural repairs, heating modernization, and EPC C energy efficiency retrofits to become lettable. Compare the raw asking metrics against all-in underwriting below.

Est. CapEx: +£21,000
Marlborough Street North, South Shields, NE33
33% Gross YieldNE33 ClusterLeasehold (Leasehold)
NE33Flat

Marlborough Street North, South Shields, NE33

Asking Price
£40,000
High Rental Yield Ranking
Net Cashflow+£838/mo
Est. Gross Rent£1,100/mo
25% Deposit£10,000
2026 SDLT£2,000
First Home 95% Mortgage£2,000 deposit (5%) • £0 FTB Stamp Duty
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BTL Capital

Purchase Price£40,000
25% Cash Deposit£10,000
2026 5% SDLT£2,000
Legal & Survey Est.£1,500
Total Upfront Cash£13,500

First Home (95%)

FTB Route
5% Cash Deposit£2,000
FTB Stamp Duty£0 (£0 Relief)
30yr Repayment (5%)£204/mo
4.5× Income Needed£8,444/yr
Vs Local RentSAVE £896/MO

Operating Cashflow

Gross Monthly Rent+£1,100
75% Mortgage (5.2%)-£130
Agency & Void Buffer-£132
Estimated Net Annual£10,056/yr
Cash-on-Cash ROCE74.5% Return

Bank Stress Test (ICR)

PRA Stress Rate5.50%
Stress Interest Due£138/mo
Actual Rental Cover797% ICR
SPV / Ltd Co (125%)CLEARANCE PASS
Personal (145%)CLEARANCE PASS
CapEx, Refurbishment & EPC C Underwriting

True All-In Financial Underwriting

Real-world stress testing accounting for cosmetic refurbishment, structural wear, 10% contingency, and proposed 2028–2030 MEES EPC C compliance.

High CapEx Trap Check
Acquisition Cost
Asking: £40,000
£61,000
+£21,000 Refurb & EPC Budget
Gross Rental Yield
Headline: 33%
21.64% All-In
Based on £1,100/mo (£13,200/yr)
Total Cash Required
Raw Cash: £13,500
£34,500
Deposit + SDLT + Legal + Total Works
Net Annual ROCE
Raw ROCE: 74.5%
29.15% True
Net Rent / Total Cash Out-of-Pocket

Itemized CapEx Allocation

Base Refurbishment (MEDIUM REFURB)£15,000
10% Unforeseen Contingency Buffer+£1,500
EPC C Retrofit Allowance (Band D Baseline)+£4,500
Total Capital Expenditure Reserve£21,000

Includes loft insulation top-up, smart controls/TRVs, heating commissioning, and localized cosmetic upgrades.

BRRR Refinance & Equity Model (25% Uplift)

Target Gross Development Value (GDV)~£76,250
75% LTV Refinance Mortgage£57,188
Estimated Capital Recycled£34,500
Net Capital Left In Deal£0

Estimated equity uplift of £15,250 upon completion of works. Refinance subject to 6-month ownership rule and surveyor valuation.

Tenure & Service Charge

Leasehold

Leasehold apartments require annual service charges (est. £1,400/yr) and ground rent (est. £150/yr), reducing monthly net cashflow by ~£129/mo.

Tenure Typeleasehold
Unexpired TermN/A (Freehold Interest)
Est. Service Charge£1,400 / yr
Est. Ground Rent£150 / yr
Net Annual Tenure Deductions:-£1,550 / yr
Section 24 & SPV Modeling

SPV vs. Personal Name

Holding this property inside a Limited Company (SPV) saves approx. £2,098/yr in tax because 100% of mortgage interest is tax-deductible against 19% Corporation Tax.

Personal Tax (40% Higher Rate)£3,714 / yr
SPV Corporation Tax (19%)£1,616 / yr
Personal Post-Tax Cashflow£399 / mo
SPV Post-Tax Cashflow£574 / mo
Annual Tax Saved via SPV:+£2,098 / yr
HMO & Article 4 Planning

Multi-Let Potential

No citywide Article 4 restriction detected. Standard Permitted Development rights (Class L) may apply, subject to local council licensing rules.

Single Family AST Rent£1,100 / mo
Est. HMO Room Revenue£1,100 / mo
Bills & Utilities Buffer-£270 / mo
Mandatory Licensing (5+ beds)Standard HMO
Net HMO Monthly Uplift:+£-270 / mo vs AST

Institutional Investor Notice & 2026 Tax Rules:

Calculations account for the Autumn Budget residential second-home Stamp Duty surcharge (5% on the initial £250,000 bracket). Mortgage figures are simulated based on standard 75% LTV buy-to-let interest-only products at 5.2%. Independent professional conveyancing and financial advice should always be obtained prior to exchange of contracts.
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Model Stress Test