37 High Street, Cardigan, Ceredigion, SA43 1HE

Description

Attractive mixed use town centre investment. A substantial mixed use fully let high yielding investment property within Cardigan town centre, comprising two commercial units and an 8-bedroom HMO residential accommodation on the first and second floors. The property is Grade II Listed, the accommodation has recently been upgraded, and the property includes a rear courtyard with outhouses. Both commercial units have accommodation over two floors.

Accommodation

Commercial Unit A: Ground floor main retail area, rear kitchen/prep room and storeroom; first floor storage room with sink/drainer unit and cloakroom/WC. Commercial Unit B: Ground floor retail/studio room with reception area and further room; first floor additional room and cloakroom/WC. Both units have access to the rear courtyard, which includes an additional storage outbuilding. HMO: Ground floor hallway providing access to the upper floors; first floor landing, four letting rooms, kitchen and bathroom; second floor landing with access to an upper attic level currently disused and used only for storage, four letting rooms, second kitchen and bathroom/shower room.

Location

Located in the popular town centre of Cardigan. Cardigan is on the Cardigan Bay coastline, close to Aberporth, St Dogmaels, Llangranog, New Quay, Aberaeron, Newport and North Pembrokeshire.

Tenure / Property Information

Investment Analysis

The strongest evidence is the same property’s completed sale at £320,000 on 6 October 2022. Other sales of the same address include £350,000 in 2008 and £230,000 in 2005, but these are materially older. The £300,000 guide is below the 2022 recorded sale, although current value cannot be confirmed because no current valuation, rental income figures or sufficiently specific rental comparables are supplied. Indicative evidence-based GDV scenarios are £300,000 to £350,000, with £320,000 as the base scenario.

Investment Snapshot

Strategy Recommendation

Treat as a potential income-led hold only if the legal pack confirms sustainable HMO and commercial income, tenant arrangements, compliance and all liabilities. Do not bid on headline yield or assume a flip profit without verified rents, costs and condition.

Works Required

No specific refurbishment works or costs are evidenced. The accommodation is described as recently upgraded. Allowance should therefore be made only after reviewing the legal pack, condition information, listed-building requirements and HMO compliance documentation; the disused attic is described as storage and should not be treated as additional accommodation.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the base evidence-supported GDV of £320,000, 75% refinance equates to £240,000. Cash left in cannot be calculated because refurbishment costs, full acquisition costs and verified rental income are unavailable. The strategy requires confirmation of the HMO income, commercial lease terms, tenancy documentation, compliance and refinance eligibility.

Buy-to-Let Analysis

The property is fully let and comprises two commercial units plus an 8-bedroom HMO, but no actual passing rent, AST income schedule or auctioneer rent estimate is supplied. BTL yield, debt coverage and net cash flow therefore cannot be established. The 1.5% administration charge would be £4,500 at the £300,000 guide, before any special-condition charges or other acquisition costs.

Flip Analysis

The £300,000 guide is below the latest recorded sale of the same property at £320,000, but a reliable flip surplus cannot be calculated. Works costs, selling costs, legal-pack charges and other transaction costs are not supplied, and the comparable evidence is limited and partly historic. The property is also Grade II Listed, which may affect alteration requirements.

Investor Risks & Due Diligence

• No passing rent, AST income schedule or auctioneer rent estimate is supplied, so yield and cash flow cannot be verified.

• Commercial lease details are incomplete beyond the stated lease lengths; repairing obligations, rent levels, breaks and arrears are unknown.

• The property is Grade II Listed, so alterations or remedial works may require additional consent and cost.

• HMO compliance, licensing, fire safety and the arrangements for socially care housed tenants require legal-pack verification.

• Special Conditions of Sale may impose search fees, seller’s costs, legal fees, transfer fees or other charges in addition to the stated administration charge.

• The upper attic is described as disused storage and should not be valued as an additional letting room.

• Heating and parking information is not supplied.

Recommendation

Treat as a potential income-led hold only if the legal pack confirms sustainable HMO and commercial income, tenant arrangements, compliance and all liabilities. Do not bid on headline yield or assume a flip profit without verified rents, costs and condition.

Strategy Rating

Analysis Confidence

There is useful title, occupancy, lease, tenure and same-property sale evidence, but no rent figures, detailed legal-pack income schedule, refurbishment budget, current valuation or complete acquisition and selling costs.