27 Market Square, Kirkby Stephen, Cumbria

Description

A town centre commercial investment opportunity comprising a Grade II listed ground floor and basement retail unit, currently let at £900 pcm, equivalent to £10,800 per annum. The current tenants have been in situ for a number of years, trading as Eden Valley Produce and selling a range of food and household products. Internally, the accommodation extends to approximately 100 sq m and comprises a main retail area, two further rooms, a kitchen and W.C.

Accommodation

Ground floor: main retail area, office, store, kitchen and W.C. Basement also included. Approximately 100 sq m internally.

Location

The property is set back from Market Street (A685) in the main commercial hub of Kirkby Stephen, a picturesque and historic market town situated approximately 25 miles from Kendal and Penrith.

Tenure / Property Information

Investment Analysis

The property is an occupied Grade II listed retail investment producing stated rent of £10,800 per annum. The supplied sales evidence is local but comprises properties of differing types and sizes, with no sufficiently specific comparable for this retail unit. The absence of lease terms, covenant information, tenure, condition, and an evidence-supported commercial yield means market value/GDV cannot be reliably estimated. At the £90,000 guide, the stated rent represents 12.0% gross rent yield before costs.

Investment Snapshot

Strategy Recommendation

Consider only as a commercial income investment subject to satisfactory review of the lease, tenant covenant, title, condition, listed-building constraints and special conditions. Do not bid on a refurbishment or resale appraisal that cannot currently be evidenced.

Works Required

No specific refurbishment defects or works are evidenced. Obtain and review the lease, condition information, title and Grade II listing requirements before budgeting any repairs, alterations or change of use. Any works may require listed-building consent.

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 supported GDV, refurbishment budget, lease information or commercial refinance terms are provided. The 1.2% buyer premium is subject to a £1,500 minimum; at the £90,000 guide, the purchase plus stated minimum premium would be £91,500 before other costs, works and finance.

Buy-to-Let Analysis

This is a commercial letting rather than a residential BTL. The stated passing rent is £900 pcm (£10,800 annually), producing a 12.0% gross rent yield against the £90,000 guide before purchase premium, legal costs, finance, maintenance, insurance, voids and other outgoings. Lease length, rent review provisions, tenant covenant and repairing obligations are not supplied, so net income and investment value cannot be established.

Flip Analysis

A flip/resale appraisal is not supported. The property is currently let, no vacant-possession or resale assumptions are supplied, no refurbishment costs are evidenced, and the sold comparables are not sufficiently specific. GDV and flip surplus are therefore unavailable.

Investor Risks & Due Diligence

• Lease terms, expiry, break rights, rent reviews and repairing obligations are not supplied.

• Tenant covenant and evidence of rent payment are not supplied.

• The property is Grade II listed, potentially restricting alterations and increasing approval requirements.

• Additional fees may be stated in the Special Conditions of Sale and are not quantified.

• The supplied sold comparables are different property types and do not provide a sufficiently specific valuation basis.

• Commercial investment income may be affected by vacancy, tenant default and ongoing property outgoings; these are not quantified.

Recommendation

Consider only as a commercial income investment subject to satisfactory review of the lease, tenant covenant, title, condition, listed-building constraints and special conditions. Do not bid on a refurbishment or resale appraisal that cannot currently be evidenced.

Strategy Rating

Analysis Confidence

Passing rent, accommodation, occupancy and guide price are supplied, but lease terms, tenure, condition, costs, commercial comparables and valuation yield evidence are absent.