The number that matters in a flip isn't the sale price — it's what's left after everything is paid. Many Liverpool investors overestimate profit because they only subtract purchase price and refurbishment cost. This guide walks through the complete calculation, including the costs that quietly destroy margins.
The Full Profit Calculation
Each of those five elements needs to be broken down carefully.
1. Purchase Costs
| Item | Typical Amount |
|---|---|
| Purchase Price | Your negotiated price |
| Stamp Duty Land Tax | 3% surcharge + standard bands for investment property |
| Solicitor / Conveyancing | £1,200 – £2,000 |
| Survey | £500 – £1,200 |
| Mortgage Arrangement Fee (if bridging) | 1–2% of loan |
| Total Purchase Add-on | Typically 5–7% of purchase price |
2. Refurbishment Cost
This is where most deals are won or lost. An inaccurate refurbishment estimate — especially on a project bought at auction — kills margins. Our service includes a pre-purchase site assessment with a written cost within 48 hours, before you commit to buy.
Typical Liverpool flip refurbishment costs (HHB fixed prices):
| Scope | Typical Cost |
|---|---|
| Cosmetic refresh (decoration, flooring, kitchen doors) | £8,000 – £15,000 |
| Mid-level (kitchen, bathroom, rewire, decoration) | £18,000 – £30,000 |
| Full renovation (structural, all trades) | £35,000 – £60,000 |
3. Holding Costs
These are the silent profit killers. Every week the property is in your name but not sold is costing you money:
- Bridging finance interest: 0.75–1.2% per month on the loan amount. On a £120k bridging loan over 6 months = £5,400–£8,640.
- Council tax: Charged from exchange. Budget £1,200–1,800 over a 6-month project.
- Insurance: Unoccupied property insurance: £600–1,200/year.
- Utilities during refurbishment: £200–400.
Rule of thumb: Budget 1–1.5% of purchase price per month in holding costs.
4. Sale Costs
- Estate agent: 1–1.5% + VAT of sale price
- Solicitor: £1,000–1,500
- EPC, photographs, staging: £500–1,500
A Real Liverpool Example
| Item | Amount |
|---|---|
| Purchase Price | £85,000 |
| Stamp Duty + Solicitor + Survey | £7,550 |
| Refurbishment (HHB fixed price) | £22,500 |
| Holding Costs (5 months) | £5,200 |
| Sale Costs | £3,100 |
| Total Cost | £123,350 |
| Sale Price | £145,000 |
| Net Profit | £21,650 |
That's a 17.5% return on total capital deployed in 5 months — equivalent to 42% annualised before tax.
The One Mistake That Kills Flip Profit
Getting the refurbishment wrong. Either overpaying for works (no fixed price, contractor adding variations) or underestimating the scope before purchase. Talk to us before you offer on any property — we'll give you certainty on refurbishment cost while you still have the opportunity to reflect that in your offer price.