18 Station Street, and 1 Chapel Lane, Spalding, Lincolnshire

Description

A mixed use investment comprising a retail shop producing £8,000 pa and a two bedroom flat above with separate access at the rear producing £7,500 pa.

Accommodation

Ground floor shop: shop area, office, kitchen, w.c., with a small yard area. First floor flat: kitchen, lounge, dining room and shower room. Second floor flat: landing and two bedrooms. The shop unit is 50.52 sq m. The flat has separate access at the rear. The postcode for the flat is PE11 1BP.

Location

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

Tenure / Property Information

Investment Analysis

The supplied sold evidence ranges from £110,000 to £255,000, but the comparables are not sufficiently detailed to establish comparability with this specific mixed-use property containing both a shop and a two-bedroom flat. The £255,000 sale of 1-2 Station Street may indicate a materially different asset, while the £120,000 sale of 17 Station Street is not confirmed as mixed use. The guide range of £120,000-£140,000 is therefore not independently validated as market value. The property has stated passing income of £15,500 per annum, but no yield evidence, tenancy terms, condition report, external rental comparables or detailed legal-pack information is supplied.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led mixed-use investment if the legal pack confirms the tenancies, rents, repairing obligations and title/access arrangements. Do not rely on a refinance or flip strategy without independent valuation and cost evidence.

Works Required

No refurbishment works or defects are evidenced. Allow for inspection and verification of the shop, flat, services, EPC position, common/access arrangements and tenant documentation, but no works budget can be supported from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A refinance assessment cannot be completed because no supported GDV, refurbishment budget, lending terms or valuation evidence is available. The stated passing rent may support an income-led appraisal, but the absence of specific mixed-use valuation and rental evidence makes post-purchase refinancing uncertain.

Buy-to-Let Analysis

The stated shop rent of £8,000 per annum and flat rent of £7,500 per annum produce combined passing income of £15,500 per annum, or £1,291.67 per month. Against the guide midpoint of £130,000, the gross yield is approximately 11.92%, reducing to approximately 11.71% after the £1,200 buyer premium and £1,200 administration charge, before finance, tax, repairs, insurance, voids and other costs. The income appears attractive on the supplied figures, but tenancy terms, rent review provisions, arrears position and operating costs are not provided.

Flip Analysis

A flip appraisal cannot be established because the evidence does not provide a reliable GDV, refurbishment budget, resale costs or confirmed vacant possession. The mixed-use nature and current tenancies also require legal and operational review before any resale strategy is considered.

Investor Risks & Due Diligence

• The supplied sold comparables are not sufficiently detailed to confirm comparability with this shop-and-flat asset.

• Tenancy agreements, rent review terms, arrears status, repairing obligations and deposit information are not provided.

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

• No condition, maintenance, services or refurbishment information is supplied.

• No supported GDV or refinance valuation is available.

• The stated rents are passing-income claims but are not independently verified by external rental evidence.

Recommendation

Consider only as an income-led mixed-use investment if the legal pack confirms the tenancies, rents, repairing obligations and title/access arrangements. Do not rely on a refinance or flip strategy without independent valuation and cost evidence.

Strategy Rating

Analysis Confidence

Passing rents, tenure, occupancy, guide range, fees and several local sold prices are supplied, but there are no sufficiently specific mixed-use comparables, external rental evidence, tenancy terms, condition information, works costs, GDV or complete purchaser-cost details.