115-121 High Street, Kirkcaldy, Fife

Description

The Property is arranged over ground and one upper floor to provide a shop with ancillary accommodation. The Property forms part of a larger building, the remainder of which is not included in the sale.

Accommodation

Ground Floor - 238.9 sq m (2,571 sq ft); First Floor - 55.87 sq m (601 sq ft); Total - 294.77 sq m (3,173 sq ft).

Location

Situated on the west side of the High Street, close to its junction with Whytescauseway, in the pedestrianised town centre opposite an entrance to The Mercat Shopping Centre. Kirkcaldy is some 26 miles north of Edinburgh and 30 miles south of Dundee. Kirkcaldy Train Station is approximately 0.4 miles away. The A92 provides access to the M90 Motorway.

Tenure / Property Information

Investment Analysis

Occupied heritable town-centre shop investment comprising 3,173 sq ft, let to Bonmarche Properties Limited at a stated contractual rent of £35,000 per annum. The guide price of £195,000 implies a headline gross yield of approximately 17.95% before buyer fees, VAT and other charges. No completed sales, market-rent comparables or investment valuation yield evidence were supplied, so an independent GDV or market value cannot be established. The reversionary lease is stated to extend to September 2036, subject to rent review and a tenant break option in its fifth year.

Investment Snapshot

Strategy Recommendation

Assess as an income-hold commercial investment, subject to verifying the lease, tenant covenant, break provision, rent review and all auction/seller charges. Do not bid solely on the headline yield without confirming total acquisition costs and lease enforceability.

Works Required

No specific repair, refurbishment or compliance works are evidenced. Review the lease, schedule of condition, title and building interfaces before bidding; any works allowance remains unsupported.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed because no GDV, refurbishment budget, investment valuation yield or refinance terms are supported. The property is already occupied and income-producing, so the evidence supports an income-hold review rather than a refurbishment-led refinance case.

Buy-to-Let Analysis

The existing contractual rent is £35,000 per annum, equivalent to £2,916.67 pcm, producing a headline 17.95% gross yield against the £195,000 guide. This is based on passing lease rent rather than external rental evidence and excludes buyer fees, VAT and other charges. The reversionary lease includes a rent review and tenant break option in its fifth year, creating income-security risk.

Flip Analysis

A flip appraisal is unsupported because no market-value evidence, resale comparables, refurbishment budget or selling-cost allowance was supplied. The commercial lease and existing occupation also make a straightforward vacant resale strategy uncertain.

Investor Risks & Due Diligence

• The reversionary lease contains a tenant break option in its fifth year.

• Future rent is subject to a rent review, with no review outcome or mechanism supplied.

• The rent is contractual lease income, not independently verified market rent.

• Buyer fees are unspecified and VAT may apply; additional seller or third-party charges may also arise.

• The property is occupied by a single named tenant, creating tenant-covenant and concentration risk.

• The property forms part of a larger building, with the remainder excluded from the sale; title, repair and building-interface obligations require review.

• No EPC, council tax, parking or heating information was supplied.

Recommendation

Assess as an income-hold commercial investment, subject to verifying the lease, tenant covenant, break provision, rent review and all auction/seller charges. Do not bid solely on the headline yield without confirming total acquisition costs and lease enforceability.

Strategy Rating

Analysis Confidence

The passing rent, guide price, lease summary, accommodation and occupancy are supplied, but there are no sales comparables, market-rent evidence, valuation yield, condition report, works budget or quantified buyer/seller charges.