255 North Street, Bedminster, Bristol, Avon, BS3 1JN

Description

A mid terrace building arranged to provide a ground floor retail unit let to Betfred producing £15,000 per annum and two flats on the first and second floors (both sold off on long leases).

Accommodation

Ground floor: retail unit, GIA approximately 946 sq ft. First and second floors: two flats (not inspected).

Location

Situated on a mixed use road close to local shops and amenities. Nearby multiples include Aldi and Pizza Hut. Greville Smyth Park is within easy reach. Transport links are provided by Bedminster rail station.

Tenure / Property Information

Investment Analysis

The £170,000+ guide is supported by a current passing ground-floor rent of £15,000 per annum, equivalent to an 8.82% gross yield before costs. However, the supplied sold comparables are all from 2006–2011 and are not sufficiently reliable for a current GDV, particularly because the first- and second-floor flats have been sold off on long leases and were not inspected. The £20,000 ERV is an auctioneer estimate, not achieved rent. Current market value cannot be established reliably from the supplied evidence.

Investment Snapshot

Strategy Recommendation

Investigate as an income-led freehold investment only. Proceed only after confirming the Betfred lease term, rent review position, covenants, title structure, long-lease flat arrangements and all completion costs in the legal pack.

Works Required

No specific refurbishment works are evidenced. Before bidding, review the legal pack, confirm the status and enforceability of the Betfred lease, and inspect or obtain information on the two long-lease flats. Any physical works allowance remains unsupported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR analysis cannot be completed reliably. No refurbishment budget, current GDV or refinance valuation is supported, and the flats are subject to long leases rather than being available as vacant units. The known £1,800 administration charge and possible legal-pack disbursements would also need to be included in a full acquisition budget.

Buy-to-Let Analysis

This is primarily an income-led freehold investment rather than a conventional residential BTL. The ground-floor retail unit has stated passing rent of £15,000 per annum, producing an 8.82% gross yield on the £170,000 guide before the £1,800 administration charge and any disbursements or other costs. The auctioneer’s £20,000 ERV would imply approximately 11.76% on the guide, but it is only an estimate. No rent is evidenced for the two flats because they have been sold off on long leases.

Flip Analysis

A flip surplus cannot be established because the supplied comparables are historic, no current GDV is supported, no refurbishment cost is evidenced, and the two flats have been sold off on long leases. The freehold interest appears to be centred on the retail investment and its lease arrangements rather than a vacant redevelopment opportunity.

Investor Risks & Due Diligence

• The stated 15-year Betfred lease commencing 29 September 2004 appears to require legal confirmation because its stated term has elapsed.

• The £20,000 ERV is an auctioneer estimate rather than achieved or independently evidenced rent.

• The first- and second-floor flats were not inspected and have been sold off on long leases, limiting control and potentially affecting the freehold’s value.

• The supplied sale comparables date from 2006–2011 and do not establish a current GDV.

• Buyer disbursements, seller-cost reimbursements, legal fees, transfer fees and other Special Conditions charges may be payable but are not quantified.

Recommendation

Investigate as an income-led freehold investment only. Proceed only after confirming the Betfred lease term, rent review position, covenants, title structure, long-lease flat arrangements and all completion costs in the legal pack.

Strategy Rating

Analysis Confidence

Passing retail rent and the guide are supplied, but the only sale comparables are historic, there is no sufficiently specific external rental evidence, the flats were not inspected, and refurbishment, valuation, lease-status and completion-cost information is incomplete.