Property flipping
Buy, improve and resell for a profit within months.
Professional analysis
Underwrite on profit on cost and on GDV with a contingency of 10–20%. Holding period drives finance cost (often bridging). Trading vs investment tax treatment depends on intention and facts; get advice. Some mortgage lenders restrict resale within six months of purchase — confirm buyers' lending constraints.
Capital requirements
Deposit or full purchase price (bridging typically 70–75% LTV), works budget, holding costs and contingency.
Cost assumptions to budget for
- SDLT
- Bridging interest and fees
- Works and contingency
- Council tax, insurance and utilities while empty
- Estate agent and legal fees on sale
Potential returns
Varies widely; small market moves can wipe out margins. Use conservative resale evidence.
Main risks
- Overrunning works and costs
- Market falls during the project
- Buyer mortgage restrictions on quick resales
- Valuation shortfall
Legal checks
- Building regulations sign-off for works
- Planning for structural changes
Regulatory checks
- Building regulations and competent-person certificates
- Trading profits may be taxed as income
Is it suitable?
Often suits
- Experienced project managers with contractor networks
Usually not suitable for
- First-time investors without a contingency
- Falling markets
A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.
Step-by-step
- Find sold-price evidence for the finished product (not asking prices).
- Get builder quotes; add contingency.
- Run the refurbish-and-sell calculator.
- Arrange finance with an exit plan.
- Project-manage works with building control sign-off.
- Market and sell; review the actual vs planned numbers.
Financial calculations
Your offer or asking price.
Use local letting agents' valuations — not included in this report unless shown.
e.g. licensing, safety certificates
Default costs are assumptions for illustration — replace them with your own quotes. Stamp duty (£15,000) and refurbishment (£0) come from the other tabs.
After income tax (owned personally)
An estimate for one owner in England, Wales or Northern Ireland, assuming all the profit falls in the band you choose and ignoring carried-forward amounts. Companies pay corporation tax instead and can deduct interest. Check with an accountant.
Three scenarios
| Scenario | Cashflow / month | Net yield | Cash-on-cash |
|---|---|---|---|
| Conservative | £-1,124 | -0.13% | -16.73% |
| Expected | £-884 | -0.11% | -13.17% |
| Optimistic | £-804 | -0.10% | -11.97% |
Conservative: rent −10%, rate +1.5 points, 4 extra void weeks, running costs +20%, works +20%. Optimistic: rent +5%, rate −0.5 points, 1 fewer void week, running costs −10%, works −5%. These are projections from your inputs, not guaranteed returns.
Sensitivity: annual cashflow
| Rent | Rate -1% | Rate +0% | Rate +1% | Rate +2% |
|---|---|---|---|---|
| -10% | £-8,737 | £-10,612 | £-12,487 | £-14,362 |
| +0% | £-8,737 | £-10,612 | £-12,487 | £-14,362 |
| +10% | £-8,737 | £-10,612 | £-12,487 | £-14,362 |
Official sources
Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.
Not advice