115 Lower Addiscombe Road, Croydon, Surrey, CR0 6PU

Description

A Mixed Use Mid Terrace Building Arranged to Provide a Ground Floor Retail Unit and Two Flats on the Upper Floors Fully Let Producing £48,800 Per Annum (Reflecting a Gross Initial Yield of 12.5% on the Guide Price).

Accommodation

The property comprises a mixed use mid terrace building arranged to provide a ground floor retail unit and two flats (2 x one bedroom) on the upper floors.

Location

The property is situated on a mixed use road close to local shops and amenities. The open spaces of Addiscombe Recreation Ground are within easy reach. Transport links are provided by West Croydon overground station and rail station.

Tenure / Property Information

Investment Analysis

The property is offered at £390,000+, with stated annual income of £48,800 and a supplied gross initial yield of 12.5%. The exact property sold for £1,250,000 in 2022, although that comparable is dated and recorded as “Other”; therefore it is indicative rather than a current formal valuation.

Investment Snapshot

Strategy Recommendation

Consider as an income-hold purchase subject to verification of leases, rent schedules, legal-pack disbursements, condition and mixed-use lending terms.

Works Required

No refurbishment or defects are evidenced. Allow for normal landlord management and maintenance only, subject to inspection and the legal pack.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the 2022 same-address sale as an indicative GDV produces a theoretical 75% refinance figure of £937,500. Total project cost, refurbishment cost and cash left in cannot be calculated without works, transaction and financing information.

Buy-to-Let Analysis

Fully let at stated gross rent of £48,800 per annum, equating to approximately £4,066.67 pcm and 12.51% gross yield on the £390,000 guide. Net yield cannot be established because operating costs, tenancy terms and finance costs are not supplied.

Flip Analysis

A theoretical resale benchmark of £1,250,000 is available from the 2022 same-address sale, but current resale value, works, selling costs and finance costs are unsupported. Flip surplus is therefore not calculated.

Investor Risks & Due Diligence

• The stated £48,800 is gross income; net operating costs are unknown.

• Tenancy agreements, tenant covenant and rent schedule are not supplied.

• Mixed-use lending and refinancing terms may differ from standard residential lending.

• The £1,250,000 same-address sale is from 2022 and classified as “Other”, so current GDV is uncertain.

• Additional legal-pack disbursements may be payable.

• No condition, EPC or building-services information is supplied.

Recommendation

Consider as an income-hold purchase subject to verification of leases, rent schedules, legal-pack disbursements, condition and mixed-use lending terms.

Strategy Rating

Analysis Confidence

Income and guide price are supplied, but tenancy details, operating costs, condition, legal-pack costs and current valuation evidence are incomplete.