Description

A freehold mixed-use investment comprising two ground-floor commercial units and two first-floor one-bedroom flats. The auctioneer states both flats are let at £6,000 per annum each, 292 Gipsy Lane is let at £5,700 per annum, and 290 Gipsy Lane is vacant with an estimated rental income of £12,000 per annum. The current passing income is therefore approximately £17,700 per annum, with the auctioneer quoting an ERI of £34,000 per annum. Rear land and substantial timber storage buildings are also included.

Location

Gipsy Lane is in north-east Leicester, with established residential neighbourhoods and local retail/commercial activity. The property is within reach of Leicester city centre and the wider road network, giving the mixed-use accommodation access to a broad tenant and occupier market.

Investment Analysis

Investment Snapshot

Guide Price	£375,000

Current Passing Income	Approx. £17,700 pa

Auctioneer ERI	£34,000 pa

Gross Yield on Guide - Current	Approx. 4.7%

Gross Yield on Guide - ERI	Approx. 9.1%

Indicative Upgrade Allowance	£20,000–£40,000

Suggested Strategy	Commercial / Mixed-Use Income Investment

Property & Refurbishment

The residential flats appear lettable but may benefit from targeted cosmetic and compliance upgrades between tenancies. The vacant 290 commercial unit may require fit-out or landlord works depending on the intended tenant. Rear stores and external areas should be surveyed. An initial feasibility allowance of £20,000–£40,000 is reasonable pending survey and quotations.

Rental Analysis

The auctioneer-published passing income is approximately £17,700 per annum. The auctioneer also states ERI of £34,000 per annum, including £12,000 per annum for the vacant 290 commercial unit. At the £375,000 guide this equates to roughly 4.7% gross on current income and 9.1% on the stated ERI before costs, voids and management.

GDV / Resale Analysis

A precise GDV has not been independently established because this is a mixed-use income asset where value will depend heavily on sustainable rents, lease terms, tenant covenant and commercial yield. The primary appraisal should therefore focus on verified ERV/ERI and investment yield rather than a residential-style resale figure.

Properties Sold Within Approx. 5 Miles

No sufficiently specific recent sold comparables were independently verified during this appraisal. GDV should be confirmed against Land Registry/RICS comparable evidence before bidding.

Investor Risks & Due Diligence

Review all commercial and residential tenancy documentation.

Confirm the legal extent and condition of the rear land and timber stores.

Verify the auctioneer's ERI assumptions with local letting evidence.

Check commercial use, planning, business rates and any VAT position.

Allow for the £1,800 inc VAT auction administration charge and legal-pack disbursements.

Recommendation

Preferred strategy: Commercial / Mixed-Use Income Investment. The main opportunity is to let the vacant commercial unit, review existing rents and improve the passing income toward a sustainable market level while retaining the diversified commercial/residential income stream.

Strategy Rating

Commercial Income: ★★★★☆

Buy-to-Let: ★★★★☆

BRRR: ★★☆☆☆

Flip: ★★☆☆☆

Mixed-Use Investment, Gipsy Lane, Leicester

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