16 High Street, Hythe, Southampton, Hampshire, SO45 6AH

Description

A ground floor commercial unit let producing £12,000 per annum, reflecting a gross initial yield of 10.4% on the guide price. Potential for development, subject to obtaining all relevant consents. The property comprises a ground floor commercial unit situated within a mid terrace building arranged over ground and first floors. The property benefits from front and rear access.

Accommodation

Ground Floor: Commercial Unit, Kitchen, WC. G.I.A. approximately 58 sq m.

Location

The property is situated on a mixed use road close to local shops and amenities. Nearby multiples include Domino's Pizza, Waitrose and Boots. The open spaces of Hythe Pier are within easy reach. Transport links are provided by Beaulieu Road rail station.

Tenure / Property Information

Investment Analysis

Indicative value range of £150,000–£165,000, based on the two closest 2022 High Street freehold sales (£150,000 and £165,000). Comparability is limited because detailed sizes, condition and lease terms are unavailable. Base case uses £157,500.

Investment Snapshot

Strategy Recommendation

Consider as a hold investment subject to satisfactory lease, tenant and legal-pack review. Do not rely on development or refinance assumptions without consents and lender confirmation.

Works Required

No specific refurbishment works are evidenced. Inspect condition, services, access and the legal pack; any development would require relevant consents.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the guide plus the known £1,800 admin charge, base cost is £116,800. A 75% refinance of the indicative £157,500 value is £118,125, before finance costs, taxes and lender criteria. Commercial refinance availability is unconfirmed.

Buy-to-Let Analysis

The stated headline rent is £1,000 pcm (£12,000 annually), producing a 10.43% gross yield on the £115,000 guide and approximately 10.27% including the £1,800 admin charge. The first three months are understood to be £800 pcm, and commercial void, tenant and lease risks remain.

Flip Analysis

Using the indicative £157,500 base value, the gross margin before selling costs, finance, tax and works is approximately £40,700 against the guide and known admin charge. No refurbishment allowance or selling-cost evidence is available, so a reliable flip surplus cannot be calculated.

Investor Risks & Due Diligence

• The first three months are understood to be at £800 pcm rather than £1,000 pcm.

• Commercial tenant default, vacancy and reletting risk.

• Additional disbursements and seller-related costs may be payable under the legal pack.

• Development potential is subject to obtaining all relevant consents.

• No specific condition, EPC or refurbishment information is supplied.

• Comparable sales are dated and detailed comparability is limited.

Recommendation

Consider as a hold investment subject to satisfactory lease, tenant and legal-pack review. Do not rely on development or refinance assumptions without consents and lender confirmation.

Strategy Rating

Analysis Confidence

Rent, tenure, lease summary, guide and nearby sales are supplied, but condition, EPC, detailed lease terms, external rental evidence, costs and development consent information are absent.