38 & 38A Windmill Hill, Halesowen

Description

A vacant freehold retail unit with a studio flat above, within a busy local shopping parade.

Accommodation

A two storey mid terraced retail premises with self contained studio flat above. The ground floor comprises a main retail area with rear store and kitchenette. On the first floor is a studio flat having hall, kitchen, bathroom/WC and open plan living room/bedroom. It was noted that 38 Windmill Hill was previously interlinked with 36 Windmill Hill and it is considered that this arrangement could easily be reinstated to create a double unit.

Location

The property fronts the Northern side of the A458 Windmill Hill, standing within a parade of similar properties within a well established residential neighbourhood, situated between Halesowen Town Centre and Lye.

Tenure / Property Information

Investment Analysis

Local completed sales range from £120,000 to £135,000 for relevant terraced properties, including a £125,000 sale recorded as 38A Windmill Hill. However, the comparables do not clearly establish the value of the complete mixed-use retail unit with studio flat. A provisional base GDV of £125,000 is used, with a broad evidence-led range of £120,000–£135,000. This is not a formal valuation.

Investment Snapshot

Strategy Recommendation

Proceed only after confirming the legal pack, commercial/residential use, title arrangements, condition and realistic rents. Treat the guide as a maximum starting point rather than evidence of a viable BTL or flip.

Works Required

No specific defects or refurbishment requirements are evidenced. Allow for inspection, cleaning, decoration and any necessary repairs only after survey and review of the legal pack; no works budget can be supported from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the provisional £125,000 GDV, 75% refinancing would be approximately £93,750. The acquisition cost includes the £120,000 guide and the £2,700 administration charge, but refurbishment, stamp duty, finance, legal and other special-condition costs are unsupported. Consequently, total project cost, equity requirement and cash left in cannot be calculated reliably.

Buy-to-Let Analysis

A BTL yield cannot be established. The supplied rental evidence relates to advertised two-bedroom house rents of £700 and £1,095 pcm, whereas the subject contains a studio flat above a retail unit. No studio or retail rent, passing income or letting assumptions are provided. The property is vacant, so there is no existing income.

Flip Analysis

The provisional GDV range is £120,000–£135,000, based on nearby completed sales. A flip surplus cannot be calculated because no refurbishment budget, selling costs, stamp duty, finance costs or other completion costs are supported. The narrow apparent margin against the guide is therefore not evidence of profitability.

Investor Risks & Due Diligence

• Mixed-use valuation is uncertain because the supplied completed sales do not clearly match the complete retail-and-studio configuration.

• The property is vacant and no passing rent is available.

• The rental evidence is for two-bedroom houses and does not establish rent for the studio flat or retail unit.

• Refurbishment and repair costs are not evidenced or budgeted.

• Additional costs may apply under the special conditions, and stamp duty/government taxes are excluded from the stated administration charge.

• The potential reinstatement of the former link with 36 Windmill Hill is mentioned, but no cost, consent or legal feasibility evidence is supplied.

• Shared yard and parking arrangements require verification in the legal pack.

Recommendation

Proceed only after confirming the legal pack, commercial/residential use, title arrangements, condition and realistic rents. Treat the guide as a maximum starting point rather than evidence of a viable BTL or flip.

Strategy Rating

Analysis Confidence

There are several nearby completed sales and clear tenure/occupancy information, but the comparables are not clearly like-for-like, while rent, condition, refurbishment costs, taxes, finance and other completion costs are unavailable.