203 Rye Lane, Peckham, London

Description

The property comprises a high yielding retail investment occupying a prominent high footfall pitch. Arranged across ground floor only, the property comprises a retail unit with a frontage to Rye Lane let to a Private Individual t/a Olas Hair Stylist on a 15 year lease which expired 12.10.2023 and paying £33,000 per annum. We understand the tenant is continuing to occupy the property and pay rent, and is therefore holding over. We consider the property offers asset management potential via renewal of the lease and improvement of rent.

Accommodation

Ground floor retail unit with frontage to Rye Lane; 1,129 sq ft (104.9 sq m)

Location

Prominent pitch fronting Rye Lane, a high footfall street forming part of the principal retail amenity in Peckham. Peckham Rye station is approximately 0.2 miles to the north.

Tenure / Property Information

Investment Analysis

The £250,000 guide equates to approximately £221 per sq ft and a 13.2% gross income yield on the stated £33,000 annual rent. The supplied sold evidence is not sufficiently comparable: four entries relate to the same flat/maisonette address and one is an unspecified leasehold property. No reliable commercial sale evidence or formal valuation is supplied, so GDV and scenario values cannot be established. The investment is occupied, but the 15-year lease expired on 12 October 2023 and the tenant is holding over, creating lease-security and re-letting risk.

Investment Snapshot

Strategy Recommendation

Consider as a commercial income hold only after confirming the tenant’s legal status, rent payment history, lease documentation and renewal prospects. Do not rely on a refinance or resale strategy without a commercial valuation.

Works Required

No physical refurbishment works are identified in the evidence. The principal asset-management opportunity is renewal or regularisation of the occupational lease and potential rent improvement, subject to legal and market advice.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot be completed because no reliable GDV or commercial refinancing evidence is supplied. At the guide, the stated income is attractive on a gross basis, but refinancing depends on the property’s commercial valuation, lease status, tenant covenant and lender treatment of a tenant holding over.

Buy-to-Let Analysis

This is a commercial income investment rather than a residential BTL. The stated rent is £33,000 per annum, equivalent to £2,750 pcm, producing a 13.2% gross yield at the £250,000 guide. No buyer premium, admin charge, other fees, operating costs, rent review terms or external rental comparables are supplied, so net yield and sustainable market rent cannot be established. The holding-over status should be legally reviewed before purchase.

Flip Analysis

A flip assessment cannot be supported. The supplied comparables are not reliable commercial comparables and no refurbishment scope, resale costs or commercial GDV is available. The opportunity appears primarily income-led rather than an evidenced resale project.

Investor Risks & Due Diligence

• The 15-year lease expired on 12 October 2023 and the tenant is holding over.

• The tenant’s continued occupation and rent payments are stated but no rent payment history or formal tenancy documentation is supplied.

• No reliable commercial sale comparables or formal market valuation are supplied.

• No external rental comparables, operating costs or lease terms are supplied, preventing assessment of net yield and market rent.

• Buyer premium, admin charge and other acquisition costs are not provided.

• Leasehold title and the terms of the new 250-year lease require legal review.

Recommendation

Consider as a commercial income hold only after confirming the tenant’s legal status, rent payment history, lease documentation and renewal prospects. Do not rely on a refinance or resale strategy without a commercial valuation.

Strategy Rating

Analysis Confidence

The passing rent, accommodation, tenure, occupancy and guide are supplied, but there is no comparable commercial valuation, external rent evidence, fee schedule, lease detail beyond expiry, condition report or refinancing evidence.