16 Norcot Road, Tilehurst, Reading, RG30 6BU

Description

A freehold terraced property comprising a ground floor retail unit trading as a beauticians as well as vacant upper parts with separate access and plans drawn up for conversion into two flats. Investment let £10,200 p.a. + vacant upper parts.

Accommodation

16 Norcot Road: ground floor retail unit, approximately 441 sq ft (41 sq m). 16a Norcot Road: part of ground floor and upper parts with access, approximately 1,335 sq ft (124 sq m). Total area approximately 1,776 sq ft (165 sq m).

Location

Situated on Norcot Road, Tilehurst, within an established residential and commercial area of Reading. Local shops, cafés and amenities are within walking distance, with Reading town centre also easily accessible. Regular bus services operate along Norcot Road. Reading West and Tilehurst railway stations are within easy reach, and Junction 12 of the M4 provides road connections across the wider region.

Tenure / Property Information

Investment Analysis

The available sold comparables are neighbouring freehold terraced properties ranging from £315,000 to £400,000, but they are not evidenced as directly comparable to this mixed-use property with a let retail unit, vacant upper parts and proposed conversion into two flats. A reliable GDV or maximum bid cannot therefore be established from the supplied evidence. The current guide is £295,000, excluding unknown buyer fees, VAT and other charges stated in the Special Conditions.

Investment Snapshot

Strategy Recommendation

Proceed only with extensive due diligence and a price reflecting the unquantified upper-parts conversion. Review the lease, Special Conditions, planning/building-regulation position, VAT and all conversion costs before bidding. On the supplied evidence alone, do not underwrite the vacant upper parts as completed flats.

Works Required

Assess and, if appropriately authorised, convert the vacant upper parts into two flats in accordance with the supplied plans. The evidence does not provide a scope of works, planning or building-regulation position, specifications, contractor quotations or cost allowance. The existing retail unit is let and should be assessed separately.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed reliably because no refurbishment cost, planning position, completed residential GDV, finance cost or upper-parts rental evidence is supplied. Refinance at 75% of GDV and cash left in are therefore unsupported. The existing commercial income provides some interim support, but the upper-parts conversion remains unquantified.

Buy-to-Let Analysis

The ground-floor retail lease produces £10,200 per annum, equivalent to £850 pcm, giving a 3.46% gross yield against the £295,000 guide before fees and any works. The upper parts are vacant, and no reliable rent is supplied for the proposed two flats. The residential rental evidence of £1,400 pcm for two beds and £1,500 pcm for three beds is asking-rent evidence and cannot be applied reliably without confirmed flat layouts and completion costs.

Flip Analysis

A flip appraisal cannot be established. Although nearby terraced sales range from £315,000 to £400,000, they are not demonstrated to be comparable to this mixed-use asset or to the proposed two-flat configuration. There is no supported conversion budget, GDV or selling-cost allowance.

Investor Risks & Due Diligence

• The upper parts are vacant and their conversion into two flats is not supported by supplied planning or building-regulation evidence.

• No refurbishment or conversion cost estimate is supplied.

• The residential rental evidence comprises advertised asking rents and does not confirm achievable rent for the proposed flats.

• The lease of the retail unit expires in October 2027, creating future income and reletting risk.

• Buyer fees, VAT and other seller's charges are not supplied and may materially increase total acquisition cost.

• The sold comparables are neighbouring terraced properties but are not evidenced as directly comparable to this mixed-use asset.

Recommendation

Proceed only with extensive due diligence and a price reflecting the unquantified upper-parts conversion. Review the lease, Special Conditions, planning/building-regulation position, VAT and all conversion costs before bidding. On the supplied evidence alone, do not underwrite the vacant upper parts as completed flats.

Strategy Rating

Analysis Confidence

The passing commercial rent and basic property description are supplied, but there is no supported GDV, conversion cost, planning status, residential layout, completed-flat rent, EPC, buyer fee or Special Conditions information.