1 Nutter Road, Thornton-Cleveleys, Lancashire FY5 1BG

Description

A mixed-use investment opportunity comprising ground floor and part first floor commercial premises extending to approximately 268.73 Sq M (2,892 Sq Ft) and currently occupied by an established electrical appliance retail business. The remainder of the first floor and second floor comprises a three bedroom flat let to a professional tenant. The property is fully let and producing a combined rent of £33,300 per annum. An opportunity to acquire a well let investment property in excellent condition, occupied by a tenant that has been trading from this location for 20 years.

Accommodation

Ground Floor (Commercial): Retail & Storage: 192.90 Sq M (2,076 Sq Ft). First Floor (Commercial): Storage: 75.83 Sq M (816 Sq Ft). First Floor (Residential): Entrance Hall; Living Room: 3.95m x 6.17m; Kitchen: 3.63m x 4.13m; Bathroom: 1.49m x 2.53m. Second Floor (Residential): Bedroom: 2.39m x 3.41m; Bedroom: 3.47m x 4.29m; Bedroom: 3.79m x 4.58m. Site Area: Approximately 246 Sq M (294 Sq Yds).

Location

Located in the centre of Cleveleys, a short distance from the main thoroughfare of Victoria Road West, and 1 mile from the A585 Amounderness Way, which provides access to the M55 motorway.

Tenure / Property Information

Investment Analysis

The property is a fully let mixed-use investment producing stated annual rent of £33,300. The £240,000+ guide implies a gross yield of 13.88% before buyer premium. The supplied sold comparables are nearby but are mainly individual residential properties and do not support a reliable mixed-use investment GDV. No capitalisation yield, commercial valuation or sufficiently specific rental comparable is supplied, so GDV and a maximum bid cannot be reliably established.

Investment Snapshot

Strategy Recommendation

Consider as an income-led mixed-use investment only if the buyer is satisfied with the commercial lease, tenant covenant, break option and title structure. Do not rely on a flip or BRRR strategy without independent valuation and legal review.

Works Required

No refurbishment works are evidenced. The property is described as being in excellent condition. Allow for normal inspection, legal and compliance checks, but no costed works are supported by the evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR calculation cannot be completed because no supported GDV, refinance valuation basis, refurbishment budget or lending terms are supplied. The long lease terms are noted, but the two lease structure and commercial tenant break option require legal and lender review.

Buy-to-Let Analysis

At the £240,000 guide, the stated combined rent of £33,300 per annum produces a gross yield of approximately 13.88%. Including the 1.8% buyer premium of £4,320, the acquisition cost before any unknown additional fees or works would be £244,320, giving an indicative gross yield of approximately 13.63% on that amount. The commercial lease has a break option at the second anniversary, and the residential rent is stated as an AST rent rather than independently verified achieved rent.

Flip Analysis

A flip analysis is not supported. The property is an income-producing mixed-use investment, no refurbishment requirement is evidenced, and the supplied residential sold comparables do not establish a resale value for the whole mixed-use asset. Selling costs and a supported GDV are also unavailable.

Investor Risks & Due Diligence

• The commercial lease includes a break option at the second anniversary, creating potential income and reletting risk.

• The property is held by way of two 999-year leases, so title, repairing obligations, rights and any interaction between the leases require legal review.

• The commercial tenant's covenant and ability to continue paying rent are not independently evidenced.

• The £33,300 annual rent is stated by the auction particulars; no external rental evidence or passing-rent verification is supplied.

• Additional fees may be payable under the Special Conditions of Sale but are not provided.

• No EPC, heating, parking or refurbishment-cost information is supplied.

Recommendation

Consider as an income-led mixed-use investment only if the buyer is satisfied with the commercial lease, tenant covenant, break option and title structure. Do not rely on a flip or BRRR strategy without independent valuation and legal review.

Strategy Rating

Analysis Confidence

Contractual rents, guide price, buyer premium, occupancy and lease information are supplied, but there is no reliable mixed-use valuation evidence, rental comparable evidence, refurbishment budget, EPC information or complete fee schedule.