15-16 Station Street, Spalding, Lincolnshire PE11 1EF

Description

A shop unit with two floors above currently used as offices/storage with a rental income of £12,500 pa. This retail shop is currently tenanted by a local charity on a five year lease. The shop offers a sales area, store, with two offices, gents and ladies w.c and a kitchen on the first floor and two further rooms on the second floor. Total floor area of 115.82 sq meters. Rateable value of £10,250 pa.

Accommodation

Ground floor: shop area and a store. First floor: office, store room, kitchen, gents and ladies w.c. Second floor: two offices. Total floor area: 115.82 sq metres.

Location

Spalding offers a variety of shops and recreational facilities together with a rail link into Peterborough and services into London Kings Cross.

Tenure / Property Information

Investment Analysis

The closest evidence is 17 Station Street at £120,000 in January 2025, with other nearby Station Street sales at £110,000 and £120,000. The £255,000 sale appears to represent a materially larger or different property and is not directly comparable. A base GDV of £120,000 is therefore used, with a supported evidence range of £110,000–£120,000. The property is tenanted and produces stated rental income of £12,500 per annum, but lease terms and covenant details have not been provided.

Investment Snapshot

Strategy Recommendation

Consider as an income-led commercial/mixed-use hold only after reviewing the lease, rent payment history, tenant covenant and full legal pack. Do not rely on residential conversion or flipping without further evidence.

Works Required

No specific refurbishment defects or required works are evidenced. Allowance is made only for routine ownership and compliance obligations, which cannot be quantified from the supplied information.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A 75% refinance against the £120,000 base GDV would indicate £90,000 of debt proceeds. Against an illustrative £112,400 acquisition cost including the midpoint guide and known £2,400 charges, approximately £22,400 would remain invested before finance costs, tax, legal costs, disbursements and any works. Residential conversion or uplift evidence is not supplied, so BRRR potential is unproven.

Buy-to-Let Analysis

At the midpoint guide analysis price of £110,000, the stated £12,500 annual rent produces an indicative gross yield of 11.36% before finance, tax, maintenance, vacancy and other commercial property costs. Including the stated £2,400 buyer premium and admin charge, the indicative gross yield is 11.12%. The rent is stated as current income under a five-year lease, but passing-rent documentation, break rights, repairing obligations and tenant covenant have not been supplied.

Flip Analysis

The base GDV of £120,000 is only £10,000 above the midpoint guide analysis price. After the known £2,400 buyer and admin charges, the illustrative cost is £112,400 before selling costs, finance, tax and any works. No supported refurbishment uplift or selling-cost allowance is available, so a reliable flip surplus cannot be calculated.

Investor Risks & Due Diligence

• The five-year charity lease terms, break provisions, rent review position and repairing obligations have not been provided.

• Tenant covenant strength and rent payment history are not evidenced beyond the stated current rental income.

• No sufficiently specific external rental comparable or auctioneer rent estimate is available.

• Possible VAT, legal fees, searches, transfer fees, seller-cost reimbursements and other legal-pack disbursements may increase total acquisition cost.

• No condition, building-services or compliance evidence is supplied beyond the EPC rating D.

• The valuation range is based on nearby sales that may not be directly comparable in size, configuration or income profile.

Recommendation

Consider as an income-led commercial/mixed-use hold only after reviewing the lease, rent payment history, tenant covenant and full legal pack. Do not rely on residential conversion or flipping without further evidence.

Strategy Rating

Analysis Confidence

Nearby completed sales, tenure, occupancy, lease length and stated rent are available, but there is no condition survey, detailed lease, rental comparable, auctioneer rent estimate, full cost schedule or confirmed legal-pack disbursements.