32 Kings Road, St. Leonards-on-Sea, East Sussex

Description

A freehold mixed use investment comprising two ground floor commercial units, together with two separately accessed residential flats located above.

Accommodation

Two ground floor commercial units, each with a shop floor, customer counter/till area, W.C. and kitchenette to the rear, plus a basement room. Flat 1: first-floor entrance hall, living room overlooking Kings Road, kitchen, bathroom with bath and basin, separate W.C., bedroom with bay window and second bedroom. Flat 2: top-floor living room overlooking Kings Road, kitchen overlooking Kings Road, bedroom with en-suite bathroom with shower and basin, two further bedrooms, bathroom with bath and basin and separate W.C.

Location

The property is situated in a prominent position on Kings Road, St Leonards-on-Sea, within easy reach of local shops, amenities and the seafront. The residential accommodation is accessed separately from Cross Street.

Tenure / Property Information

Investment Analysis

The £310,000–£320,000 guide equates to approximately 9.6–9.6 times the current annual rent, or a gross income yield of 10.40%–10.74% before costs. The nearby sold comparables are different terraced properties, with varied dates and prices, so they do not provide a reliable mixed-use valuation. No supported capitalisation yield, detailed condition evidence, or directly comparable mixed-use sales were supplied; therefore GDV and a maximum bid cannot be established reliably. The midpoint guide price of £315,000 is used only for the guide-yield calculation.

Investment Snapshot

Strategy Recommendation

Income-led hold only if legal review confirms lease quality, covenant strength and realistic renewal or reletting prospects. Do not underwrite a BRRR or flip strategy without a mixed-use valuation, condition survey, EPC confirmation and full buyer-cost schedule.

Works Required

No specific refurbishment works are evidenced. Before bidding, inspect the two commercial units, basement rooms, flats, services, roof and common/access areas, and confirm the outstanding EPC information. Any works allowance remains unsupported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed because no supported GDV, refurbishment budget, valuation yield, finance terms or buyer-cost figures are available. The current lease provides income evidence, but the 2027 expiry and incomplete EPC information require due diligence before relying on refinancing potential.

Buy-to-Let Analysis

The property is already let at £33,282.64 per annum under a whole-property overriding Full Repair and Insuring lease. Against the £310,000–£320,000 guide, this indicates a gross income yield of approximately 10.40%–10.74% before finance, tax, voids and other costs. Residential market rent cannot be isolated because no residential/commercial rent allocation or achieved residential rent evidence was supplied. The lease expires on 2 February 2027, creating material reletting, renewal and income-continuity risk.

Flip Analysis

A flip appraisal cannot be supported. No reliable mixed-use GDV, refurbishment budget, selling-cost allowance or directly comparable mixed-use sales were supplied. The nearby comparables are different terraced properties and are not sufficient to calculate a resale surplus.

Investor Risks & Due Diligence

• The overriding Full Repair and Insuring lease expires on 2 February 2027.

• The whole property is let under one lease, so income depends on renewal, reletting and the tenant covenant.

• No commercial or residential rent allocation is provided, preventing separate market-rent assessment.

• Commercial EPC ratings and the Flat 2 EPC rating are to be confirmed.

• Administration, non-optional buyer fees, searches, Stamp Duty, Land Registry fees and possible VAT are not quantified.

• No condition, heating or parking information is supplied.

• The sold comparables are different terraced properties and may not represent the value of this mixed-use freehold.

Recommendation

Income-led hold only if legal review confirms lease quality, covenant strength and realistic renewal or reletting prospects. Do not underwrite a BRRR or flip strategy without a mixed-use valuation, condition survey, EPC confirmation and full buyer-cost schedule.

Strategy Rating

Analysis Confidence

The current passing rent, lease dates, tenure, accommodation and guide range are supplied, but there is no reliable mixed-use valuation evidence, rent allocation, condition report, refurbishment budget, finance information or complete fee schedule.