Buy-to-let income valuation
Income-based valuation
Example buy-to-let property
Prepared
21 May 2026
Net income for yield
£10,800 / year
Valuation is based on rent less fixed owner costs such as service charge, ground rent and insurance. It excludes letting management, finance, tax and personal ownership costs.
Monthly rent
£1,000
gross rent received
Monthly fixed costs
£100
before finance
Monthly net income
£900
used for yield valuation
Gross annual income
£12,000
before fixed costs
7.5% yield
£144,000
£10,800 annual net income / 7.5%
10.0% yield
£108,000
£10,800 annual net income / 10.0%
Income Bridge
- Monthly rent
- £1,000
- Service charge
- £100 / mo
- Ground rent
- £0 / mo
- Insurance
- £0 / mo
- Other fixed costs
- £0 / mo
- Net monthly income
- £900
Buyer Settings
- Deposit assumption
- 25%
- Mortgage type
- Interest-only
- Mortgage rate
- 5.50%
- Legal fees
- £1,500
- SDLT basis
- Additional property
- Management fees
- Excluded
Buyer Costs At Each Yield Value
Measure
7.5% value
10.0% value
Income-based value
£144,000
£108,000
Stamp duty
£7,580
£5,400
Legal fees
£1,500
£1,500
25% deposit
£36,000
£27,000
Total cash required
£45,080
£33,900
Interest-only mortgage
£495 / mo
£371 / mo
Remaining monthly cash
£405 / mo
£529 / mo