Buy-to-Let Case Study

3-Bedroom Victorian Terraced House

A traditional income-stability investment in an established NN3 residential area, positioned for a professional couple or small family seeking a well-presented long-term home.

NN3, Northampton Victorian Terrace Professional Couple Small Family
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Headline Metrics

Income Stability
Purchase Price £235,000
Monthly Rent £1,450
Annual Cash Flow ~£3,096
DSCR 1.32

Figures are illustrative and subject to valuation, finance terms, tenant demand, maintenance and full due diligence.

Project Showcase

Victorian terraced house in an established residential area.

This buy-to-let case study is built around stable residential demand, traditional family living space and long-term rental appeal rather than short-stay income acceleration.

Buy-to-let Victorian terraced house case study in NN3 Northampton
NN3, Northampton

Project profile

A 3-bedroom Victorian terraced house offering street presence, natural light, a neutral internal finish and a rear garden suitable for a professional couple or small family.

01
Target tenant profile Professional couple or small family looking for a stable long-term home.
02
Residential demand NN3 positioning supports access to local amenities, schools, employment and transport links.
03
Practical family layout Living room, bedrooms and garden space support mainstream tenant demand.
04
Income stability strategy Designed for predictable rental income rather than high-turnover short-stay bookings.
Investment angle The asset is a conventional leveraged single-let: reliable income potential, moderate yield, and sensitivity to interest rate movement.
Acquisition & Finance

Simple leveraged buy-to-let structure.

The acquisition is modelled with a 25% deposit and an interest-only mortgage at 5.5%, allowing the deal to be reviewed on both income and debt service coverage.

Purchase Price £235,000
Deposit — 25% £58,750
Mortgage — Interest Only @ 5.5% £176,250
Monthly Rent £1,450
Annual Rent £17,400
Operating Profile

Stable rental income with realistic running costs.

The operating profile includes management, maintenance, insurance and a two-week void allowance.

Operating Costs

Letting & Management — 10% £1,740
Maintenance Provision £1,800
Insurance £400
Void Allowance — 2 Weeks £670
Total Operating Costs ~£4,610

Cash Flow

Net Operating Income ~£12,790
Mortgage Interest ~£9,694
Annual Cash Flow ~£3,096

Investor Metrics

DSCR 1.32
Net Yield on Cash Invested ~5.2%
Strategy Type Income Stability

Tenant Positioning

Asset Type 3-Bed Terrace
Target Tenant Couple / Family
Rental Model Single-Let
Stress Testing

Moderate resilience, but interest-rate sensitive.

The asset performs acceptably under moderate rental stress, but higher interest rates reduce coverage and can push cash flow negative.

Interest @ 7.5%

Higher borrowing costs increase annual mortgage interest.

~£13,219

Mortgage interest under the higher-rate scenario.

Higher Rate Cash Flow

Cash flow turns negative when interest cost rises materially.

~£(429)

Estimated annual cash flow at 7.5% interest.

Rent -10%

Rental income reduction still leaves positive cash flow, but coverage tightens.

~£1,356

Estimated annual cash flow with rent reduced by 10%.

DSCR @ 7.5%

Debt service coverage falls below a comfortable position.

0.97

Coverage becomes tight under higher interest rates.

DSCR with Rent -10%

The asset remains above 1.0, but the margin is reduced.

1.17

Moderate rent pressure still leaves coverage.

Key Sensitivity

Typical of leveraged single-lets, the main pressure point is finance cost.

Interest

Interest-rate movement has the strongest impact on this model.

Conclusion

A stable single-let asset with clear interest-rate sensitivity.

This Victorian terraced house performs well under moderate stress, but like many leveraged single-lets, the investment case depends heavily on mortgage pricing and maintaining stable occupancy.

✓
Stable tenant demand
Suitable for professional couples and small families in an established residential location.
✓
Conventional income model
Lower operational intensity than serviced accommodation or HMO-style models.
!
Interest-rate sensitivity
Cash flow compresses quickly when borrowing costs increase.
!
Maintenance discipline required
Older terraced houses need realistic maintenance allowances and regular inspections.

Income stability strategy.

This is a lower-complexity residential investment compared with serviced accommodation or HMO models. The trade-off is lower cash flow upside but more predictable tenant demand.

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This sample is for information only and is not financial advice. Investors should obtain independent tax, legal, lending, valuation and property advice before proceeding.
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