🏠 BTL Calculator UK

# Stamp Duty Calculated progressively across bands. Defaults: 0 - 125k -> 5% 125k - 250k -> 7% > 250k -> 12% Bands and rates can be edited in "⚙️ Stamp Duty - bands configuration". The result also shows the effective % vs. purchase price. # Stage 1: Purchase Total Investment Cost = Price + Refurb + StampDuty + Legal + Sourcing + PM Fee + Structural Survey + Other custom costs + Final BTL setup (arrangement/booking/valuation/broker/legal) + if BRRR + 1st BTL on: 1st BTL setup costs + refurb-period interest Note: if ARRANGEMENT FEE is "added to loan": - it's NOT in Total Investment Cost (not paid out of pocket) - it increases the loan amount (and the interest base) - effectively repaid over the life of the mortgage in the monthly payment Mortgage (loan amount) = LTV% × base (DUV or Price) + optionally capitalised arrangement fee Cash needed (deposit) = Total Investment Cost - Mortgage # Stage 2: Monthly cashflow Mortgage interest-only: Mortgage × rate% / 12 Monthly costs = MortgagePay + Mgmt%×Rent + Insurance + Maint%×Rent + Voids%×Rent + CompanyCosts + Other Cashflow = Rent - Monthly costs # KPI - Yields Gross Yield (DUV) = (Rent × 12) / DUV - UK industry standard, gross rent / value Gross Yield (Price) = (Rent × 12) / Price - same vs. purchase price (BRRR shows how cheaply you bought yield) Net Yield (DUV) = (Rent - operating costs WITHOUT mortgage) × 12 / DUV Net Yield (Price) = (Rent - operating costs WITHOUT mortgage) × 12 / Price -> Net yield is what you'd earn if buying cash (no mortgage). Mortgage is a financing cost, not a property cost - that's why it only kicks in cashflow/ROE. # ROE ROE = (Annual cashflow / Cash needed) × 100% -> annual cash returned as % of own money invested. -> mortgage leverage pushes ROE above yield - the whole point of BTL on credit. # UK interest rate (notes) - FIXED RATE (most BTL): SONIA swap rate (2Y/5Y) + lender margin ≈ visible rate - TRACKER: BoE Base Rate + margin (changes when BoE moves) - SVR (Standard Variable Rate): expensive (~7-9%), kicks in after fixed period - ALWAYS refinance before. - Fixed period: 2/3/5/10 years. ERC for early exit typically 1-5% of balance. # BRRR (Buy -> Refurb -> Rent -> Refinance), no bridging Two events. The remortgage event is what sections 2 & 3 (Mortgage + Mortgage Setup Costs) describe - that's the FINAL, long-term BTL used in Cashflow / ROE / Scenarios. Default path (cash purchase + remortgage): 1. Buy in cash 2. Refurb (no rent during refurb_months) 3. Let the property 4. Remortgage onto a BTL valued from DUV - 6-month rule: most lenders won't refinance earlier than 6 months after purchase - Goal: 75% LTV * DUV "pulls back" the deposit (because DUV > price + refurb) With 1st BTL toggled on (two-mortgage path): 1. Buy with 1st BTL (LTV * Purchase Price), separate rate / fixed period 2. Refurb_months pass with no rent; 1st BTL interest accrues -> refurb interest = 1stLoan * 1stRate% / 12 * refurb_months (added to Total Investment Cost) 3. Let the property 4. Remortgage as above. Setup costs are paid AGAIN (full set in sections 2 & 3). Note: 1st BTL is settled at remortgage. Its rate / fixed period only matter for refurb interest. The FINAL BTL (sections 2 & 3) is the one driving long-term cashflow. # What I look for - Cashflow > 0 is the absolute minimum, realistically I want > £150 / month buffer. - ROE > 10% is OK, > 15% is a good investment. - In the scenarios table I check what happens if rates go up 2-3pp - is cashflow still positive. - Remember: after the fixed period ends I have to refinance = another ~£1,500-£4,000 of costs.