Investment Appraisal Template
A structured template for appraising a potential buy-to-let investment — covering purchase costs, projected rental income, gross and net yield, cash flow, return on investment and stress-test scenarios.
Updated: 1 June 2026
This template is for indicative appraisal purposes only. Always obtain independent financial and tax advice before committing to a property purchase. Mortgage interest relief is restricted under Section 24 — model your tax position carefully.
Investment Appraisal Template
Use this template before committing to a buy-to-let purchase to stress-test the numbers and compare opportunities.
Purchase Costs:
- Purchase price
- Stamp Duty Land Tax (including 3% surcharge)
- Solicitor and conveyancing fees
- Survey and valuation fees
- Mortgage arrangement and broker fees
- Refurbishment and pre-let costs
- Total acquisition cost
Income Projections:
- Monthly rent (market rate)
- Annual gross rent (assuming full occupancy)
- Void allowance (typically 4–6 weeks per year)
- Net annual rent after voids
Annual Running Costs:
- Mortgage interest (if applicable)
- Letting agent management fee
- Landlord insurance
- Maintenance reserve (10% of gross rent)
- Safety certificates (Gas Safety, EICR)
- Accountant fees
- Void period council tax and utilities
Key Metrics:
- Gross yield: annual rent ÷ purchase price × 100
- Net yield: net annual profit ÷ total acquisition cost × 100
- Monthly cash flow: net rent minus mortgage payment
- Return on equity: annual profit ÷ deposit × 100
- Stress test: cash flow at +2% and +4% mortgage rate increase
Have questions about this document?
Ask Landlord AI: Our AI AssistantGuidance only. Landlord Handbook provides practical information to help landlords understand their responsibilities. It is not legal or financial advice. Always check the latest GOV.UK guidance and seek professional advice where appropriate.