290-292 Gipsy Lane, Leicester, Leicestershire LE4 9BX

Description

A freehold mixed-use investment comprising two ground-floor commercial units and two first-floor one-bedroom flats. The auctioneer states both flats are let at £6,000 per annum each, 292 Gipsy Lane is let at £5,700 per annum, and 290 Gipsy Lane is vacant with an estimated rental income of £12,000 per annum. The current passing income is therefore approximately £17,700 per annum, with the auctioneer quoting an ERI of £34,000 per annum. Rear land and substantial timber storage buildings are also included.

Location

Gipsy Lane is in north-east Leicester, with established residential neighbourhoods and local retail/commercial activity. The property is within reach of Leicester city centre and the wider road network, giving the mixed-use accommodation access to a broad tenant and occupier market.

Investment Analysis

Investment Snapshot

Property & Refurbishment

The residential flats appear lettable but may benefit from targeted cosmetic and compliance upgrades between tenancies. The vacant 290 commercial unit may require fit-out or landlord works depending on the intended tenant. Rear stores and external areas should be surveyed. An initial feasibility allowance of £20,000–£40,000 is reasonable pending survey and quotations.

Rental Analysis

The auctioneer-published passing income is approximately £17,700 per annum. The auctioneer also states ERI of £34,000 per annum, including £12,000 per annum for the vacant 290 commercial unit. At the £375,000 guide this equates to roughly 4.7% gross on current income and 9.1% on the stated ERI before costs, voids and management.

GDV / Resale Analysis

A precise GDV has not been independently established because this is a mixed-use income asset where value will depend heavily on sustainable rents, lease terms, tenant covenant and commercial yield. The primary appraisal should therefore focus on verified ERV/ERI and investment yield rather than a residential-style resale figure.

Properties Sold Within Approx. 5 Miles

No sufficiently specific recent sold comparables were independently verified during this appraisal. GDV should be confirmed against Land Registry/RICS comparable evidence before bidding.

Investor Risks & Due Diligence

• Review all commercial and residential tenancy documentation.




• Confirm the legal extent and condition of the rear land and timber stores.




• Verify the auctioneer's ERI assumptions with local letting evidence.




• Check commercial use, planning, business rates and any VAT position.




• Allow for the £1,800 inc VAT auction administration charge and legal-pack disbursements.

Recommendation

Preferred strategy: Commercial / Mixed-Use Income Investment. The main opportunity is to let the vacant commercial unit, review existing rents and improve the passing income toward a sustainable market level while retaining the diversified commercial/residential income stream.

Strategy Rating

Commercial Income: ★★★★☆

Buy-to-Let: ★★★★☆

BRRR: ★★☆☆☆

Flip: ★★☆☆☆