FREEHOLD MIXED-USE INVESTMENT – £21,800 PA – 8% GROSS YIELD
We have pleasure in offering for sale the freehold interest in 45 High Street, together with the leasehold interest of Flat 2 at the rear of the first floor.
This Grade II listed building has been extremely well maintained over the years and has recently undergone a further programme of maintenance and compliance works to bring the building to the standard of a turn-key investment.
The new purchaser will benefit from the income streams of both a well-known retail charity tenant occupying the ground-floor shop premises and a long-term and reliable residential tenant in Flat 2 above, together with the annual ground rent income from Flat 1.
Ground Floor Retail / Shop Premises
The ground-floor retail premises comprise a split-level main retail area, with suspended ceiling and window frontage extending across the width of the property.
To the rear, the ground floor is divided to provide office, storage and staff amenity space.
All areas are in a very good state of repair and have been very well maintained.
Outside, to the rear of the property, is a brick-built garage/workshop, currently used as storage by the retail occupier and forming part of the lease. The garage also provides opportunity for further uses/development in the future.
The retail space is currently leased at £14,000 per annum, with approximately five years remaining. Further details of the lease are available upon request.
Rateable Value: £14,500
Total Shop Area: Approximately 140 m² / 1,500 ft²
The owners have recently commissioned a fresh EPC. The previous EPC rating was 69 C.
First Floor – Flat 2
Flat 2 is accessed from the rear communal entrance shared with Flat 1.
The property comprises a spacious one-bedroom flat, which is in very good order and has been maintained to the same high standard as the remainder of the building. It is currently let at £650 per calendar month to a long-term and reliable tenant.
The flat benefits from efficient gas central heating throughout.
The generously proportioned master bedroom benefits from both a roof light and window to the side, providing plenty of natural light. There is ample space for a king-size bed together with wardrobes and additional storage.
Adjacent to the bedroom is a well-appointed bathroom comprising a bath with shower over, WC and basin, continuing the theme of generous space, storage and natural light.
Moving along the hallway is the eat-in kitchen, fitted with numerous base and eye-level storage units, quality appliances and again benefiting from plenty of natural light.
Overlooking the rear of the property is a generous living room with a glazed door opening onto a balcony with views to the rear, together with a useful storage cupboard.
Note that AI has been used to remove personal items and enhance the photographs of the flat.
EPC Rating D
Investment Summary
The property provides an established mixed-use investment with income generated from both its commercial and residential elements.
The ground-floor retail premises currently produce £14,000 per annum, while Flat 2 produces a further £7,800 per annum, giving a combined known rental income of:
£21,800 per annum
In addition, the purchaser will benefit from the annual ground rent income from Flat 1.
At the Guide Price of £272,000, the known commercial and residential rental income alone represents a gross yield of approximately 8.0%, before taking account of the additional ground rent income.
With established tenants already in occupation and recent maintenance and compliance works undertaken, the property presents an opportunity to acquire a well-maintained, turn-key investment with multiple existing income streams.
Flat 2 lease is 125 years from 27th March 2017.
Ground rent is £100pa, service charge is £220pa
Building insurance is split 3 fifths retail, 1 fifth flat 1, 1 fifth flat 2.
Exterior repairs are allocated 40% to each flat.
Further details of the existing commercial lease and residential tenancy are available upon request.
