Oakwood Lane, Leeds
How much profit is really left?
There is a gap between buying and selling prices. Once the work and fees are paid, the remaining profit is much thinner. Try the stress test to see how quickly it disappears.
Validate the likely sale price, fix the works scope and include the cost of finance or delays before making an offer.
- Modelled entry price
- £217,000
- Total project cost
- £289,390
- Modelled profit
- £8,610
An assumption to test, not an agreed offer
Purchase, works, fees, selling and holding
After modelled costs, before tax
01 / The numbers
Does the margin hold up?
Cash-funded project at the modelled entry price. Before tax; borrowing costs would reduce the profit further.
From sale to profit
Whole projectThe assumptions in this sample report
£8,610Profit before tax in the base case
Selling and holding costs stay fixed in this sensitivity. Delays, finance and extra work could reduce profit further.
The cost of the project
Before tax£289,390Total modelled cost
- Purchase
- £217,000
- Works
- £46,000
- Stamp duty
- £12,690
- Buying fees
- £5,200
- Selling + holding
- £8,500
This example funds the purchase in cash. Any borrowing needs its own finance allowance.
02 / The judgement
The upside. And the unanswered questions.
The margin depends on achieving the sale price and controlling the work. A small change in either can turn this project into a loss.
What supports the case
- Exact-unit sold evidence attached
- Margin exists if the exit stays in range
- Presentation-led works rather than a structural rescue
What could change the decision
- Flip margin compresses quickly if exit slips by even one quarter.
- Presentation-heavy spec can overrun if contractor scope is not locked before exchange.
- Resale demand should be checked against live competing stock before pricing the exit.
What to check next
- Prove the exit before committing to the trade
- Quote the works as a fixed scope
- Price the carry, not just the headline margin