116 Sandgate Road, Folkestone, Kent

Description

Freehold vacant shop, vacant two-bedroom flat plus two-bedroom investment flat in a prime location. The property comprises a ground floor retail unit and two two-bedroom flats on the upper parts. The two flats have their own communal entrance at ground floor level separate from the retail unit.

Accommodation

Commercial: ground floor double-fronted shop with main retail area and counter, office, kitchen area, store area with access to rear yard, and rear lobby with access to ladies' and gents' W.Cs; mezzanine storage area. Residential: Flat A with entrance hall, living room, kitchen, two bedrooms and shower room with W.C.; Flat B with entrance hall, landing, living room, kitchen/dining room, two bedrooms, bathroom and separate W.C.

Location

Situated within a parade of properties on the northern side of Sandgate Road, Folkestone's principal retail thoroughfare.

Tenure / Property Information

Investment Analysis

The supplied Sandgate Road comparables range from £385,000 to £540,000, with the most recent sale at 106 Sandgate Road completing at £460,000 in July 2024. As the comparables are not described in sufficient detail to confirm similarity of accommodation, condition or income, £460,000 is used as an indicative base GDV only.

Investment Snapshot

Strategy Recommendation

Proceed only after legal, tenancy, condition and commercial-income due diligence. The strongest evidenced route is an income-led mixed-use hold, but vacant Flat A and the shop require verified letting assumptions before bidding.

Works Required

No refurbishment scope or cost allowance is supported by the evidence. Further inspection is required, particularly for the vacant shop, vacant Flat A and Flat B, which has an EPC rating of G. Any works should be specified only after inspection.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the indicative £460,000 base GDV, 75% refinancing equates to £345,000. A reliable BRRR cash-left-in calculation cannot be completed because refurbishment costs, buyer/admin fees and other purchase costs are unspecified. Flat B's statutory tenancy and EPC G rating are material considerations.

Buy-to-Let Analysis

The evidenced income comprises the commercial unit's advertised asking rent of £1,800 pcm plus Flat B's statutory rent of £72 per week, equivalent to £312 pcm. This gives known annual income of £25,344, excluding any unsupported rent for vacant Flat A. The indicative gross yield on the £300,000 guide is 8.45%, but this is not a full-property yield and the commercial figure is an asking rent rather than achieved rent.

Flip Analysis

A flip appraisal cannot be completed reliably because refurbishment costs, selling costs and other transaction costs are not supplied. The indicative base GDV is £460,000, supported only by limited same-road sold evidence and not a formal valuation.

Investor Risks & Due Diligence

• Flat B is occupied by a statutory tenant at a registered rent of £72 per week, limiting immediate vacant possession and income upside.

• Flat A and the commercial unit are vacant, and no supported rent is available for Flat A.

• The commercial rent of £1,800 pcm is an advertised asking rent, not an achieved or passing rent.

• Flat B has an EPC rating of G.

• Administration, search-related, Stamp Duty, Land Registry and possible VAT costs are unspecified.

• The supplied comparables are not sufficiently detailed to establish direct comparability with this property.

• No refurbishment or condition budget is supported by the evidence.

Recommendation

Proceed only after legal, tenancy, condition and commercial-income due diligence. The strongest evidenced route is an income-led mixed-use hold, but vacant Flat A and the shop require verified letting assumptions before bidding.

Strategy Rating

Analysis Confidence

Same-road completed-sale evidence and part-income information are available, but comparable property details, Flat A rent, refurbishment costs, achieved commercial rent, buyer fees and selling costs are not supplied.