Rayleigh Avenue, Leigh-on-sea, SS9
£20.50 per sq ft
Business rates & charges may apply
- SIZE AVAILABLE
15,246 sq ft
1,416 sq m
- SECTOR
Land for sale
Description
The existing building comprises a well-designed care facility including a reception, kitchen, dining room, activity room, sensory room, medication room, administration office, staff room, laundry, bathroom, two wet rooms, washroom, and 10 bedrooms, all set within private grounds. Externally, the plot includes two sheds and a timber-framed bin store.
Key Investment Highlights
Freehold plot for sale
Prime Essex location: 53 Rayleigh Avenue, Leigh-on-Sea, SS9 5DS
Site area: approx. 0.348 acres (0.141 ha)
Existing care building: single-storey modern facility (c.1995) with 10 bedrooms and full ancillary accommodation
Existing lease term: 67.5 years remaining
Current ground rent: £2,000 per annum
Upcoming rent review: 3rd March 2028, and every 5 years thereafter
RICS valuation of market ground rent: £18,000 per annum
Strong potential for uplift at next rent review
Professional RICS Valuation
A recent RICS surveyor appraisal assessed the freehold ground rent investment value as follows:
Term Value Calculation:
Ground rental value: £18,000 per annum
YP for 66.5 years @ 6%: 16.3206
Capital value of term: £293,770
Reversion Value Calculation:
Reversionary property value: £900,000
Present value of £1 for 66.5 years @ 6%: 0.02429545
Reversion value: £21,865
Total assessed investment value: £315,635
After deducting the current applicable stamp duty (£3,282), the adjusted investment value is assessed at £312,353, rounded to £312,500.
Why Buy This Freehold?
Secure long-term passive income
Significant rental uplift potential at upcoming reviews
Professionally verified valuation
Low outgoing responsibilities typical of ground rent investments
Attractive adjusted investment price
Location
The plot is situated on the west side of the service road section of Rayleigh Avenue, just north of its junction with Gravel Road, in the popular suburb of Leigh-on-Sea. Leigh-on-Sea falls within the Rochford district and is well-connected, lying around 4.1 miles north-west of Southend-on-Sea, 13.1 miles south-east of Chelmsford, and 24.4 miles south-west of Colchester.
The area benefits from strong transport links, with good road access and the plot located approximately 14.8 miles north-east of Junction 1 of the M2. Rayleigh railway station is around 1.8 miles to the south-east, offering direct services to Southend-on-Sea (approx. 22 minutes), Chelmsford (approx. 47 minutes), and Colchester (approx. 1 hour 26 minutes). Local bus routes also operate nearby, with stops located on Rayleigh Road to the south.
Headlease
The property is leased by way of an agreement dated the 6th of July 1993 between the Field Lane Foundation as the landlord and the Secretary of State for health acting by North-east Thames Regional Health Authority as the tenant. The term is for a period of 99 years at an initial rent of £2,000 per annum subject to rent reviews every 5 years with the next one due 3rd March 2028 and we are advised by way of a RICS survey that the current market value rent is £18,000 per annum.
Underlease
A licence to underlet was granted 3rd August 2020 by The Field Lane Foundation to Southend-on-Sea Borough Council as the tenant to Badgers Lodge Limited as the sub-tenant and Trustcare Management Limited as the guarantor. The Licence states the sub-lease is to be outside the provisions of sections 24 to 28 of the Landlord and Tenant Act 1954 and requires the sub-tenant to maintain the covenants.
Legal Costs
Each party are to pay their own legal costs incurred in the transaction.
Disclaimer
Whilst every care is taken to ensure that these particulars are correct, accuracy is no way guaranteed and none of the information supplied forms part of any contract. Acceptance of these particulars constitutes a contract to the effect that all negotiations for the business or property will be made through Gilbert & Rose otherwise the purchaser will be equally responsible with the vendor for damages equal to the amount of our commission.
Rayleigh Avenue, Leigh-on-sea, SS9
NEAREST STATIONS
Distances are straight line measurements from the centre of the postcode- Rayleigh Station1.8 miles
- Hockley Station2.1 miles
- Leigh-on-Sea Station2.5 miles
Notes
Disclaimer - Property reference RX687597. The information displayed about this property comprises a property advertisement. Rightmove.co.uk makes no warranty as to the accuracy or completeness of the advertisement or any linked or associated information, and Rightmove has no control over the content. This property advertisement does not constitute property particulars. The information is provided and maintained by Gilbert and Rose Commercial, Essex Commercial. Please contact the selling agent or developer directly to obtain any information which may be available under the terms of The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 or the Home Report if in relation to a residential property in Scotland.
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