14d Birmingham Road, Sutton Coldfield, West Midlands

Description

Comprising a ground, first and second floor restaurant. Let on a recently renewed 5 year lease (no breaks). Tenant in occupation since 2022. Total accommodation of approximately 98.01 sq m (1,055 sq ft). Situated in a predominantly residential area and established parade, approximately 250m south of the town centre. Popular leisure destination with many bars and restaurants nearby. VAT is applicable.

Accommodation

Ground, first and second floor restaurant; approximately 98.01 sq m (1,055 sq ft)

Location

Sutton Coldfield is an affluent suburb of Birmingham located approximately 7 miles north-west of Birmingham city centre. The property is situated within a predominantly residential area and established parade, on the west side of Birmingham Road opposite its junction with Duke Street, approximately 250 metres south of the town centre. Nearby occupiers include Rudy's Pizza, Lloyds Bank, Pizza Express, Nando’s, GDK, Howden, Quinto Lounge, Ash and The Distillery public houses, amongst other local businesses.

Tenure / Property Information

Investment Analysis

The guide is £180,000–£200,000 for a leasehold restaurant investment, but no passing rent, rent review terms, tenant covenant information or auctioneer rent estimate is supplied. The only comparable is a £100,000 leasehold terraced sale from April 2010 and is not sufficiently comparable or current to support a valuation. VAT applies and buyer, administration and other charges are unspecified. A GDV or supported market value cannot therefore be established.

Investment Snapshot

Strategy Recommendation

Do not bid on the available evidence alone. First obtain the executed lease, passing rent and review provisions, tenant covenant information, VAT treatment, full fee schedule and a commercial valuation. Proceed only if the net income supports the price.

Works Required

No refurbishment works are evidenced. The property is described as an occupied ground, first and second floor restaurant extending to approximately 1,055 sq ft. Obtain a full survey and confirm the condition and compliance of the restaurant premises before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR refinance cannot be assessed because there is no supported market value, rent, refurbishment budget or commercial refinance evidence. The proposed 999-year lease is subject to a £200 per annum ground rent, but the investment case remains dependent on the actual lease rent, tenant covenant and lender acceptability.

Buy-to-Let Analysis

This is a commercial restaurant investment rather than a conventional residential BTL. The tenant has occupied since 2022 and holds a recently renewed five-year lease with no breaks, but the passing rent is not supplied. Income, yield, affordability and value cannot be established. The £200 per annum ground rent, VAT and unspecified acquisition charges must also be allowed for.

Flip Analysis

A flip is not supported by the evidence. No refurbishment upside, resale valuation or selling-cost allowance is available, and the property is occupied under a recently renewed lease. The 2010 comparable is too old and materially different to support a resale calculation.

Investor Risks & Due Diligence

• Passing rent and rent review provisions are not supplied, preventing yield and value analysis.

• The tenant covenant and lease obligations are not evidenced.

• VAT applies, while buyer, administration and other charges are unspecified.

• The property is leasehold and subject to a £200 per annum ground rent.

• The only supplied comparable is from 2010 and is a different property type.

• Condition, compliance and EPC information are not supplied.

• The investment is dependent on continued restaurant trading and commercial demand.

Recommendation

Do not bid on the available evidence alone. First obtain the executed lease, passing rent and review provisions, tenant covenant information, VAT treatment, full fee schedule and a commercial valuation. Proceed only if the net income supports the price.

Strategy Rating

Analysis Confidence

The property description and lease structure are provided, but the key investment inputs—passing rent, rent reviews, valuation evidence, fees, EPC and condition—are missing. The sole comparable is dated and not sufficiently comparable.