19 Wheelock Street, Middlewich, Cheshire CW10 9AG

Description

Retail Investment - Gross Yield 12.7%. Forming part of a modern building comprising a Ground Floor Shop. VAT is applicable to this Lot. 8 week completion.

Accommodation

Ground Floor Shop, approximately 530 sq ft, with WC.

Location

Located close to the junction with St Michael's Way, amongst such multiples as Tesco Express, Nationwide Building Society, Morrisons, Lidl and a host of local traders. Middlewich is a prosperous market town approximately 20 miles east of Chester and approximately 7 miles south of Northwich, with access via the A55 to the M6 (Junction 18).

Tenure / Property Information

Investment Analysis

The £75,000+ guide is broadly consistent with the stated 12.7% gross yield on the £9,500 annual rent, implying approximately £74,803 at that yield. This is a guide/yield-implied figure, not a formal valuation. The supplied sold comparables are different properties or uses and do not provide a reliable direct valuation for this 530 sq ft shop. The investment benefits from occupation, a 979-year lease at peppercorn ground rent and an FRI lease, but VAT and further purchase costs are not quantified.

Investment Snapshot

Strategy Recommendation

Consider as an income-led commercial hold, subject to legal-pack review, lease review, tenant covenant checks and confirmation of VAT and all additional fees. Do not pursue as a refurbishment or flip project on the supplied evidence.

Works Required

No refurbishment works are evidenced. Allowance assumes no immediate works, subject to legal-pack review, inspection and confirmation of the FRI lease obligations.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £75,000 guide, the stated rent supports a gross-yield investment case. A 75% refinance against the £75,000 base GDV would be approximately £56,250, leaving an indicative £20,250 before finance, tax and any VAT or other acquisition costs. No refurbishment uplift is evidenced, and refinance availability, valuation and commercial lending terms are unknown.

Buy-to-Let Analysis

This is a commercial letting rather than residential BTL. The current passing rent is £9,500 per annum, or approximately £791.67 pcm, producing 12.67% gross yield at the £75,000 guide and 12.42% against the guide plus the stated £1,500 administration charge. The tenant is occupying under a five-year FRI lease from 6 April 2025, with a £1,250 rent deposit. Net yield cannot be established because other costs, VAT treatment and operating expenses are not supplied.

Flip Analysis

A flip is not supported by the evidence. The base GDV is only guide/yield-implied, no refurbishment uplift is identified, and no selling-cost allowance or reliable directly comparable shop sales is supplied. Estimated flip surplus is therefore not calculated.

Investor Risks & Due Diligence

• VAT is stated to apply, but the amount and recoverability are not supplied.

• Additional non-optional auction and acquisition costs may apply beyond the stated £1,500 administration charge.

• The five-year lease from 6 April 2025 has a finite term, creating renewal, reletting and vacancy risk at expiry.

• Tenant covenant strength and payment history are not evidenced; only a £1,250 rent deposit is stated.

• No EPC, building condition report, service-charge detail or other operational cost information is supplied.

• The supplied sold comparables are not sufficiently specific to establish a reliable market value for this shop.

Recommendation

Consider as an income-led commercial hold, subject to legal-pack review, lease review, tenant covenant checks and confirmation of VAT and all additional fees. Do not pursue as a refurbishment or flip project on the supplied evidence.

Strategy Rating

Analysis Confidence

Passing rent, lease terms, tenure, guide and administration charge are supplied, but there is no EPC, no external rental evidence, no directly comparable shop valuation, incomplete fee information and unspecified VAT treatment.