214-216 & 216a Heathfield Road, Handsworth, Birmingham, B19 1JQ

Description

A freehold mixed-use investment opportunity comprising a betting shop retail investment with residential accommodation above. Current gross income: £25,000 per annum.

Accommodation

Retail shop and self-contained flat arranged over ground and first floors. The shop provides an open-plan layout and fronts Heathfield Road. The flat has its own independent access and comprises two bedrooms, bathroom, living room and kitchen.

Location

The property occupies a prominent position on Heathfield Road in Handsworth, approximately 2 miles north-west of Birmingham city centre. The area has a mix of residential and commercial occupiers, with shops, supermarkets, restaurants and other amenities nearby. Birmingham city centre is accessible, and the A41, A34 and wider West Midlands road network provide connectivity.

Tenure / Property Information

Investment Analysis

The property is a freehold mixed-use investment comprising a betting shop and a self-contained two-bedroom flat. Current gross passing income is £25,000 per annum. The two supplied exact-address sales total £495,000 (£247,500 each) in May 2018, but they are historic and do not establish a current GDV. No sufficiently specific rental comparables or current investment valuation evidence is supplied. At the £200,000 guide, the passing-income yield is attractive before acquisition costs, but the guide is subject to the auction premium and unknown special-condition costs.

Investment Snapshot

Strategy Recommendation

Income-led hold, subject to legal-pack review, confirmation of the agreed new Coral Racing lease, verification of the flat tenancy and assessment of all completion costs. Do not base the purchase on a current GDV or flip profit without updated valuation evidence.

Works Required

No refurbishment works are evidenced. The analysis assumes no refurbishment allowance, subject to legal-pack review, tenancy documentation review and confirmation that no landlord works or compliance expenditure is required.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR refinance value cannot be calculated reliably because the only sales evidence is historic 2018 data and no current GDV is supported. The existing tenancies provide income, but refinancing will depend on lender treatment of the betting-shop lease, the residential tenancy, lease terms and the verified current value.

Buy-to-Let Analysis

The existing passing income is £25,000 per annum, equivalent to £2,083.33 per month, and produces a 12.50% gross yield against the £200,000 guide. Including the supplied £2,700 administration charge, the gross yield is approximately 12.33%. This is based on existing passing rent rather than external rental evidence and excludes stamp duty, finance, repairs, management, voids and any special-condition costs.

Flip Analysis

A flip assessment is not supported by the evidence. No refurbishment requirement, current GDV, resale evidence or selling-cost allowance is supplied. The 2018 exact-address sales provide only a historic benchmark and should not be treated as a current resale value.

Investor Risks & Due Diligence

• The ground-floor lease is stated to expire on 27 February 2027, with terms agreed for a new lease but no executed lease evidence supplied.

• The proposed new lease includes a tenant break option at the fifth anniversary, which may affect income certainty and investment value.

• The property is sold subject to existing tenancies, so vacant possession and immediate redevelopment or owner occupation are not assumed.

• Additional completion costs may apply under the special conditions, and stamp duty or government taxes are excluded from the calculation.

• No sufficiently specific external rental comparable or current valuation evidence is supplied.

• The supplied comparable sales are historic transactions completed in 2018 and may not represent current market value.

Recommendation

Income-led hold, subject to legal-pack review, confirmation of the agreed new Coral Racing lease, verification of the flat tenancy and assessment of all completion costs. Do not base the purchase on a current GDV or flip profit without updated valuation evidence.

Strategy Rating

Analysis Confidence

Passing rents, tenure, occupancy, guide price, administration charge and historic exact-address sales are supplied. Current GDV, rental comparables, refurbishment requirements, special-condition costs, taxes and finance assumptions are not supplied.