Box Tree Farmhouse, Lupton, Nr Kirkby Lonsdale, Cumbria LA6 2PR

LOCATION

Box Tree Farmhouse is situated within the small village of Lupton, adjacent to the A65, around 2 miles from Junction 36 of the M6 and 4 miles from Kirkby Lonsdale, in South Cumbria and the North West of England. Lupton is a linear village and civil parish in South Lakeland with a population of 162 (2011 Census) being a rural area between Kirkby Lonsdale and the M6.

Kirkby Lonsdale is a historic market town also situated in South Lakeland and the Lune Valley alongside the River Lune, bordered to the north and east by the Yorkshire Dales National Park. The town has a vibrant market square with a number of fashion and gift outlets, cafes and restaurants and a Booths Supermarket. The local area is very popular with tourists due to the close proximity to the Yorkshire Dales, The Forest of Bowland AONB and Lake District National Park as well as a number of picturesque and popular villages and attractions. Devil's Bridge, which is a scheduled ancient monument and a huge draw to tourists is situated on the eastern outskirts. It is a desirable area to live and visit and the local secondary school and sixth form, Queen Elizabeth School, is very popular attracting pupils from the wider South Lakeland and North Lancashire area.

Kendal, which is 9 miles to the north of Lupton, is the principal town of South Lakeland and is situated just outside of the southern boundary of the Lake District National Park. 6 miles from Junctions 36 and 37 of the M6 Motorway. The town has a resident population of 29,495 (2011 Census) and is a popular tourist destination being 10 miles south of Windermere. The town has a weighted retail catchment in excess of 50,000 people and a greater district catchment in excess of 102,000. The district's Class Grouping indicates that in excess of 50% of the catchment area is of A, B or C demographic. As well as all year-round tourism, Kendal benefits from a number of festivals and events.

Oxenholme Train Station which is situated on the West Coast main railway line is just 6 miles and 10 a minute drive away providing direct services to London (approximate journey time 2 hours, 50 minutes), Birmingham (2 hours 23 minutes) and Glasgow (1 hour, 45 minutes).

The nearest city is Lancaster around 16 miles to the south and is known as a historic and cultural city with a central population of 52,234 (2011 Census) and a wider district population of 138,375 encompassing several settlements including Morecambe. It is known as the County Town of Lancashire situated adjacent to the M6 and Lancaster Central Train Station is also on the West Coast Railway Line. The City has a highly successful public research university, The University of Lancaster, ranked in the top thirteen of all three national leagues. There is a lively centre which offers a wide range of local and national retailers as well as a number of bars, restaurants and hotels.

The A65 is a principal trunk road running from Leeds in a north westerly direction for approximately 60 miles, passing through Otley, Ilkley, Skipton and Ingleton before running through Kirkby Lonsdale to Junction 36 and then terminating in Kendal.


DESCRIPTION

Box Tree Farmhouse is a two-storey, Grade II Listed office building that was converted from a former five-bedroom dwelling and is attached to Lupton Tower, forming a headquarters building set within a rural and landscaped development shared with a small collection of residential dwellings. The property is constructed in stone rubble with some ashlar detailing and underneath a multi-pitch slate roof, incorporating a mix of timber framed single glazed original sash as well as some more recent double glazed units.

The building was upgraded in the late 1990s as part of the redevelopment of a farmstead and subsequently extended with further improvements in 2006 prior to being converted to an office in 2018. It is now interconnected to Lupton Tower at ground and first floors, providing modern office accommodation throughout, retaining many original features such as the stone flooring in part, an Oak staircase, cast iron feature fireplaces with stone surrounds, original timber panel doors and Oak lintels.

The premises have three separate external accesses, although in the current format, the tenant utilises a main entrance from Lupton Tower. At ground floor, Box Tree Farmhouse is fitted out as administration offices and break-out areas which in the main have carpeted flooring, plaster painted walls and ceiling, strip LED lighting, wall mounted radiators and data trunking. Some areas retain the original stone flagged flooring with underfloor heating and a number of the offices have exposed timber beams.

On the first floor are five further office suites and meeting room with carpeted flooring, plaster painted walls and ceilings, strip LED lighting, radiators and there is a fully fitted bathroom with WC, wash hand basin, bath and electric shower over.

Externally, the enclosed gardens to the front and rear are mostly lawned with perimeter hedging and stone wall boundaries and the rear garden has a raised gravelled patio and seating area. The adjoining double garage is built in matching stone underneath a pitched slate roof with a timber up and over door and paved car parking area adjacent.


ACCOMMODATION

The property has the following approximate floor areas:

Gross Internal Areas

Ground Floor 157.76m² (1,698 sq ft)

First Floor 116.48m² (1,254 sq ft)

Total Approximate Gross Internal area 274.24m2 (2,952 sq ft)

Net Internal Areas

Ground Floor 130.97m2 (1,410 sq ft)

First Floor 89.62m2 (965 sq ft)

Total Approximate Net Internal Area 220.59m2 (2,374 sq ft)

Garage Gross Internal Area 35.57m2 (383 sq ft)


SERVICES

The property is connected to mains electricity, metered water and foul drainage is to a shared septic tank.

Heating is provided from an oil-fired boiler that supplies perimeter radiators as well as underfloor heating and is independent of Lupton Tower.

It should be noted that the services have not been tested and therefore should not be relied upon.


RATEABLE VALUE

The property is currently rated as a single assessment with the adjacent Lupton Tower.


ENERGY PERFORMANCE CERTIFICATE

The property has an Energy Efficiency Rating of E110 and the certificate is valid until 7 January 2033.


PLANNING

Planning permission was granted on 7 November 2017 for change of use from Residential C3 to Offices B1 - South Lakeland District Council Planning Reference: SL/2017/0738.


TENANCY

The property is subject to a lease dated 8 December 2017 for a term of 10 years, expiring 7 December 2027, to Witherslack Group Limited. The lease is drawn upon full repairing and insuring provisions at a current passing rental of £45,199.44 per annum, subject to RPI rent reviews on an upwards only basis every two years with the next review due in December 2025. There are no tenant break clauses and therefore the unexpired lease term and term certainty is approximately 3 years, 8 months.

The rent is determined at review by multiplying the base rent by the All Items index value of the RPI for the month two months prior to the month in which the rent review falls, then dividing the product by the All Items index value of the RPI for the base RPI month. During the first two reviews of the lease, the rental increased by approximately 5.5%.


TENANT INFORMATION

Witherslack Group Limited (Company Number: 03579104) are a leading provider of specialist education for children and young people with special educational needs. The organisation has 27 schools across the UK and operates from their head office at Lupton Tower where they have been since 2003 and now incorporating Box Tree Farmhouse. The tenant has invested significant capital to integrate Box Tree Farmhouse into their headquarters and occupy the accommodation for their human resources and management department.

Witherslack Group Limited were incorporated in June 1998 and have an Experian Credit Score of 100, Risk Factor of 'Very Low Risk', Credit Limit of £2,200,000 and Credit Rating of £740,000. Their turnover to 31 August 2022 was £134,754,590 which was up from £113,169,444 in 31 August 2021 and £95,191,820 in August 2020 and pre-tax profits over the same period were £31,494,145 to August 2022, £25,481,303 to August 2021 and £19,680,740 to August 2020. The company reported a total net worth at 31 August 2021, excluding intangible fixed assets, of £124,306,625 and are therefore considered of sound financial standing for the rental commitment and occupancy costs of this investment property.

Source of Financial Information: Experian - April 2024.


SOUTH LAKELAND OFFICE MARKET

The South Lakeland office market has performed reasonably well in recent years characterised by limited stock particularly good quality small units and voids in the area are generally low. The main office and administration area is Kendal which has a handful of purpose-built properties and offices above shops which are generally poorer spec. There are business park developments at Meadowbank on Shap Road in the northern area of Kendal, on the river at Aynam Mills and Murley Moss Business Village which is one of the larger schemes in the southeast of Kendal and voids in the area are generally low. Rents range from around £8.00-£10.00 per sq ft for medium grade product up to £14.00 per sq ft for more quality and smaller office suites.

Schemes in out-of-town locations have created micro-markets such as Moss End Business Village at Junction 36, Lane House Business Park on the A65 close to Kirkby Lonsdale and Underley Business Centre on the western outskirts of the town. These developments have attracted full occupancy and premium rentals with £17.00 per sq ft plus achieved in some instances which is some 20% higher than prime office rents in Kendal.

Looking forward, the supply of offices in South Lakeland is likely to remain restricted with little/no development planned in the current Local Plan although land is likely to be allocated at the northern and southern ends of Kendal as well as some smaller sites in the outlying towns for potential employment use. That said, with employment land commanding high values, prime office rentals unlikely to exceed £17.00 per sq ft and build costs remaining high and increasing, any speculative development is unlikely.


SALIENT DETAILS

* The tenant is committed to the occupation of the building and offers strong financial standing.

* 3 years, 8 months term certainty, full repairing & insuring provisions on the tenant and end of lease reinstatement obligations.

* Strong prospect of rental increases under the RPI review provisions.

* The purchase price reflects a gross initial yield of 8.22%.

* Low supply of quality office accommodation in South Lakeland with reasonable demand.

* If the offices are vacated in the future, the property could be returned to a five-bedroom family dwelling and/or has been used as a successful holiday let in the past.

* Excellent location - Junction 36 of the M6 is 2 miles away, Kirkby Lonsdale 4 miles, The Yorkshire Dales National Park 4 miles, The Lake District National Park 6 miles, Kendal 8 miles, Forest of Bowland AONB 12 miles and Lancaster 16 miles.


PROPOSAL

The land and property are available freehold (Title Number: CU157564) for the land and property shown on the attached demise plan including the front and rear gardens and adjoining garage.

Offers invited in excess of £550,000 exclusive, showing an initial gross yield of 8.22% with potential reversion at review in December 2025.


MONEY LAUNDERING LEGISLATION

Edwin Thompson is bound to comply with Anti-Money Laundering legislation including obtaining evidence of the identity and proof of address of potential buyers. Prior to an offer being accepted, interested parties will need to provide the requested evidence.


EASEMENTS, WAYLEAVES AND RIGHTS OF WAY

The land and property are sold subject to and with the benefit of all public and private rights of way, lights, drainage, cable, pylons or other easements, restrictions or obligations whether or not the same are described in these particulars of sale.


VAT

The Seller has advised that the land and property are not VAT registered and therefore VAT is not payable on the rental and sale consideration.


LEGAL COSTS

Each party to bear their own legal costs in the preparation and settlement of the sale documentation together with any VAT thereon.



VIEWING

The property is available to view by prior appointment with Edwin Thompson LLP. Contact:

John Haley or Ellie Oakley



IMPORTANT NOTICE

Edwin Thompson for themselves and for the Vendor/Landlord of this property, whose Agents they are, give notice that:
1. The particulars are set out as a general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, any offer or contract.
2. All descriptions, dimensions, plans, reference to condition and necessary conditions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to their correctness.
3. No person in the employment of Edwin Thompson has any authority to make or give any representation or warranty whatsoever in relation to this property or these particulars, nor to enter into any contract relating to the property on behalf of the Agents, nor into any contract on behalf of the Vendor.
4. No responsibility can be accepted for loss or expense incurred in viewing the property or in any other way in the event of the property being sold or withdrawn.
5. These particulars were prepared in April 2024.