26a Wellowgate, Grimsby

Description

A well proportioned and appointed commercial unit available for sale by auction. The unit has an electric shutter covering the front and offers a spacious main sales area that can be suitable for a range of business requirements, a further single room, along with a kitchen area and toilet all to the rear. Potential income of circa £12,000 per annum.

Accommodation

Shop Floor: 30' 1'' x 20' 3'' (9.16m x 6.17m); Kitchen: 7' 2'' x 5' 10'' (2.18m x 1.79m); WC: 5' 10'' x 4' 11'' (1.79m x 1.50m); Utility Room: 8' 2'' x 5' 10'' (2.48m x 1.79m)

Location

The property is situate on Wellowgate, in central Grimsby within 5 minutes walk to Freshney Place Shopping Centre. The train station and a further wide range of facilities and amenities are also within close proximity. Grimsby itself offers excellent access to the surrounding area and M180 road network.

Tenure / Property Information

Investment Analysis

The £74,400 sale of the exact address in July 2024 is the strongest value evidence, but it is recorded as a flat/maisonette rather than commercial. The £56,000 sale at 21 Wellowgate provides weaker area context. A £74,400 indicative GDV is therefore used cautiously. Analysis purchase price uses the guide midpoint of £50,000, excluding unquantified VAT and disbursements.

Investment Snapshot

Strategy Recommendation

Proceed only if legal-pack review confirms the lease, VAT position and commercial value, and the £12,000 potential income is supportable. Treat as a cautious income-led commercial purchase rather than relying on the comparable for a flip.

Works Required

No specific defects or refurbishment requirements are evidenced. Verify the electric shutter, sales area, kitchen, WC and utility room through inspection and the legal pack; no works allowance has been assumed.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the guide midpoint plus known buyer and administration charges, total cost is £52,880 before VAT and other disbursements. A purely arithmetic 75% of the indicative £74,400 GDV is £55,800, leaving £2,920 before finance and tax, but commercial lending, valuation and refinance terms are unsupported and not guaranteed.

Buy-to-Let Analysis

Using the auctioneer's potential £12,000 annual income, gross yield is approximately 24.0% on the £50,000 guide midpoint and 22.69% including the £2,880 buyer and administration charges. Rental evidence ranges from £495 to £700 pcm, while the £12,000 figure is only a potential-income estimate and not passing rent. VAT, vacancy, operating costs and lease terms require verification.

Flip Analysis

The indicative £74,400 GDV exceeds the £52,880 base cost by £21,520 before VAT, selling costs, finance, tax and any works. The comparable's residential classification creates significant valuation uncertainty, so a reliable net flip surplus cannot be established.

Investor Risks & Due Diligence

• Exact-address comparable is recorded as a flat/maisonette rather than commercial property.

• The £12,000 annual income is an auctioneer estimate, not passing rent.

• Advertised rents are asking rents and may not be achieved.

• VAT is chargeable on the purchase price, but its amount is not supplied.

• Additional searches, legal, transfer and seller-cost disbursements may apply.

• Occupancy, tenant status, operating costs and commercial lending terms are not evidenced.

• Leasehold terms and remaining lease obligations require legal-pack review.

Recommendation

Proceed only if legal-pack review confirms the lease, VAT position and commercial value, and the £12,000 potential income is supportable. Treat as a cautious income-led commercial purchase rather than relying on the comparable for a flip.

Strategy Rating

Analysis Confidence

There is an exact-address completed sale and rental indications, but the comparable is classified residential, rent is only estimated or advertised, and VAT, disbursements, occupancy and operating costs are unquantified.