34 Navigation Point, Hartlepool

Description

Retail investment overlooking Hartlepool Marina; part of a mixed-use development constructed circa 2000; investment let at £9,000 per annum.

Accommodation

The property extends to 132 sq m (1,418 sq ft) and comprises a seating area, bar, kitchen and W/Cs.

Location

Located on Hartlepool Marina close to Hartlepool Town Centre and Hartlepool Train Station. Nearby occupiers include bars, restaurants, offices and shops, as well as a significant number of flats. The Marina is described as Hartlepool's premier/prime leisure offering. Hartlepool Station provides National Rail transport.

Tenure / Property Information

Investment Analysis

The property is a 132 sq m leasehold restaurant investment let at £9,000 per annum. The four supplied Navigation Point sales range from £107,000 to £250,000, but they date from 2016–2017 and provide insufficient detail on size, condition, lease terms or exact comparability. A reliable GDV or market value cannot therefore be established from the evidence supplied. At the £70,000 guide, the contracted rent represents a gross rent yield of approximately 12.86% before ground rent, acquisition costs, finance, tax and operating costs.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led commercial investment at a price that remains attractive after verifying the lease, tenant covenant, ground rent, fees, VAT position and seller’s special conditions. Do not rely on a flip or BRRR exit without further valuation evidence.

Works Required

No refurbishment or repair works are evidenced. The restaurant fit-out comprises seating, bar, kitchen and W/Cs, but condition and compliance should be verified before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot establish refinance proceeds because no reliable GDV is supported and no lender valuation, finance terms or acquisition costs are provided. The long headlease is subject to an increasing ground rent, while the occupational lease includes a break option; these matters require legal and lender review.

Buy-to-Let Analysis

The property is occupied by a restaurant tenant under a lease stated to run from September 2025 to September 2035, with a break option and rent review at the fifth anniversary. The stated £9,000 annual rent equals £750 per month and produces a 12.86% gross yield against the £70,000 guide. This is before the £500 per annum increasing ground rent, buyer fees, VAT if applicable, seller charges, finance, tax and property operating costs. Tenant covenant, payment history and the break terms are not supplied.

Flip Analysis

A flip surplus cannot be calculated reliably. The historic comparable sales are insufficiently detailed and may not be directly comparable, while no supported refurbishment budget, selling allowance, acquisition fees or current GDV is available. The property is already let as a restaurant, which also makes a vacant resale assumption unsupported.

Investor Risks & Due Diligence

• The occupational lease includes a break option, which could affect income continuity.

• The lease rent review terms and resulting rent are not supplied.

• The £500 per annum ground rent is increasing, with the escalation terms not supplied.

• Buyer fees, VAT and seller’s additional charges are unknown.

• Tenant covenant, rent payment history and restaurant trading performance are not evidenced.

• The supplied sales comparables are historic and lack sufficient detail to support a current valuation.

• Condition, statutory compliance and the state of the restaurant fit-out are not evidenced.

Recommendation

Consider only as an income-led commercial investment at a price that remains attractive after verifying the lease, tenant covenant, ground rent, fees, VAT position and seller’s special conditions. Do not rely on a flip or BRRR exit without further valuation evidence.

Strategy Rating

Analysis Confidence

The contracted rent, guide price, lease summaries, tenure and accommodation are supplied, but current comparable evidence, condition, tenant covenant, costs, VAT position and a reliable current valuation are not.