13 Hope Street, Crook, County Durham, DL15 9HS

Description

A Ground Floor Double Fronted Retail Unit and First Floor Office Space Let to Farplace Animal Rescue Producing £25,000 Per Annum (Reflecting a Gross Initial Yield of 16.6% on Lower End of Guide). The property comprises a mid terrace building arranged to provide a ground floor retail unit and first floor office space.

Accommodation

Ground floor: retail unit, storage space, office space and WC; G.I.A. approximately 150 sq m. First floor: office space, storage space and WC; G.I.A. approximately 188 sq m.

Location

Situated on a residential road close to local shops and amenities. Glenholme Skate Park is within easy reach. Transport links are provided by the A689.

Tenure / Property Information

Investment Analysis

The £150,000–£190,000 guide range is the only direct valuation evidence. The contracted £25,000 annual rent implies gross yields of approximately 16.7% at £150,000, 14.7% at the £170,000 midpoint and 13.2% at £190,000. Local sold comparables on Hope Street range from £61,700 to £128,000, but are described only as 'Other' or terraced and are not sufficiently comparable to establish a formal market value for this larger tenanted retail and office investment. The option allowing the tenant to purchase after May 2030 at the higher of £225,000 or market value is a material legal-pack point requiring review.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led commercial freehold investment, subject to satisfactory legal-pack, lease, tenant-covenant and purchase-option due diligence. Do not underwrite a refurbishment, BRRR or flip strategy without further evidence.

Works Required

No refurbishment works are evidenced. Allow for normal purchaser due diligence on the retail, office, storage and WC accommodation, lease, repairing obligations and legal-pack matters rather than assuming a works budget.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A conventional BRRR assessment is not supported because no refurbishment budget, commercial valuation, lender terms or verified refinance valuation is supplied. Using the guide midpoint only, 75% of the indicative £170,000 value is £127,500, before considering finance costs, taxes, fees, valuation criteria and the existing lease. The May 2030 mutual break and tenant purchase option may affect refinancing and exit flexibility.

Buy-to-Let Analysis

This is a commercial investment rather than a residential BTL. The property is let on an FRI lease commencing 1 May 2025 at £25,000 per annum, with an upward-only review in May 2028. Based on the £170,000 guide midpoint, the gross initial yield is approximately 14.7%; the guide range implies approximately 13.2%–16.7%. Net yield cannot be established because operating, finance, tax and acquisition costs are not fully supplied. Tenant covenant, lease terms, break provisions and the purchase option require legal review.

Flip Analysis

A flip is not supported by the evidence. The property is already let on a commercial FRI lease, no refurbishment uplift or resale costs are supplied, and the local sold comparables are not sufficiently comparable. A reliable resale surplus therefore cannot be calculated.

Investor Risks & Due Diligence

• Commercial tenant covenant and ability to maintain £25,000 annual rent are not independently evidenced.

• Mutual break clause in May 2030 may reduce income certainty and exit flexibility.

• Tenant option to purchase after 1 May 2030 at the higher of £225,000 or market value may affect future disposal and refinancing.

• Additional legal-pack disbursements, seller costs, legal fees, search fees or transfer fees may be payable.

• No EPC, heating, council tax or other building-operational information is supplied.

• Comparable sales are not sufficiently detailed or comparable to establish a formal market value.

Recommendation

Consider only as an income-led commercial freehold investment, subject to satisfactory legal-pack, lease, tenant-covenant and purchase-option due diligence. Do not underwrite a refurbishment, BRRR or flip strategy without further evidence.

Strategy Rating

Analysis Confidence

The passing rent, lease structure, guide range, tenure and basic accommodation are supplied, but there is no rental-comparable evidence, no formal valuation, no works budget, no full acquisition-cost schedule and limited comparable-sale detail.