Penny Street, Lancaster, Lancashire, LA1 1XN

Location

The property occupies an excellent and prominent position on Penny Street, one of Lancaster City Centre's busiest thoroughfares, attracting high levels of both vehicular and pedestrian traffic. Situated opposite KFC and alongside established national occupiers including Sainsbury's Local and Subway, the property enjoys a highly desirable central location, with excellent visibility and immediate access to a wide range of shops, restaurants, leisure facilities and amenities.

The property's prime central position makes it particularly attractive as a mixed use investment, offering strong appeal to both commercial occupiers and student tenants. Principal bus routes provide convenient access to Lancaster University and surrounding areas, whilst both Lancaster Railway Station and Lancaster Bus Station are approximately a five minute walk away. These excellent transport connections, combined with the property's prominent position and proximity to city centre amenities, underpin its long term investment appeal and prospects for sustained demand across both commercial and student letting markets.

Description

An excellent opportunity to acquire a prominent mixed use investment property in the heart of Lancaster City Centre, comprising established ground floor commercial premises with six bedroom student HMO accommodation above, generating a combined gross rental income of £51,536 per annum, representing a gross rental yield of 9.8%.

The ground floor commercial premises extend to approximately 1,840 sq ft and are currently occupied by Lancaster Bed Company, a well established tenant of over 10 years, producing an annual rental income of £14,000 and providing an established commercial income stream.

The upper floors comprise six generously sized student bedrooms, a spacious communal kitchen and living room, a bathroom and a separate shower room, with independent access from the front of the property. The accommodation is presented in good condition throughout and has an excellent letting history, generating a student rental income of £37,536 per annum, with each bedroom let at £136 per week on a 46 week tenancy. The student accommodation is professionally managed by IPM Student, providing an established management arrangement for the residential element of the investment.

The combination of a longstanding commercial tenant and well maintained student accommodation presents an attractive mixed use investment opportunity, offering established income alongside strong rental demand and long term investment potential in a highly sought after central location.

Accommodation Text

The ground floor commercial premises extend to approximately 1,840 sq ft, offering deceptively spacious retail accommodation with an impressive 6.4 metre (21 ft) window frontage onto Penny Street. The premises include storerooms, WC and kitchenette facilities and have been let to Lancaster Bed Company since 2012, currently producing an annual rental income of £14,000.

The upper floors comprise a spacious and well maintained six bedroom student HMO, situated in a high demand student letting location, with independent access from the front of the property. The accommodation provides generously sized bedrooms, a spacious communal kitchen and living room, bathroom and separate shower room. The property has an excellent letting history and is professionally managed by IPM Student. The accommodation is fully let for the 2026/27 academic year, with each room achieving £136 per person per week on a 46 week tenancy, generating a gross annual rental income of £37,536.

Services

Mains electricity, drainage, water & gas. Gas capped on commercial shop.

EPC Information

EPC available upon request.

Lease Terms

Contract example available upon genuine enquiry.

VAT

All terms quoted are exclusive of, but may be liable to VAT at the prevailing rate.
Property not elected for VAT.

Legal Costs

Each party to bare their own legal costs.