39 & 40 Market Square, Shipley, West Yorkshire, BD18 3QB

Description

A Mid Terrace Commercial Building Arranged to Provide Two Ground Floor Retail Units and First Floor Ancillary Space Part Let Producing £29,500 Per Annum

Accommodation

38 Market Square: Ground Floor Retail Unit, G.I.A Approx 42 sq m. 40 Market Square: Ground Floor Retail Unit, G.I.A Approx 97 sq m. First Floor: Ancillary Space, G.I.A Approx 146 sq m.

Location

The property is situated in Shipley City Centre close to local shops and amenities. Nearby multiples include Greggs, Asda and HSBC. The open spaces of Northcliffe Park are within easy reach. Transport links are provided by Shipley rail station.

Tenure / Property Information

Investment Analysis

The £710,000 2023 sale and £150,000 2015 sale at Market Square are only described as leasehold 'Other' transactions, with no comparable accommodation, income or condition detail. They are therefore insufficient to support a reliable GDV or market value estimate. At the £275,000 guide, the stated £29,500 annual rent indicates an initial gross yield of approximately 10.73%, before costs, voids and lease-related risks. The income is associated with 40 Market Square, whose stated 10-year lease from 3 October 2016 is due to expire on 2 October 2026.

Investment Snapshot

Strategy Recommendation

Income-led commercial acquisition only if the legal pack confirms secure continuing income, acceptable tenant covenant and manageable leasehold liabilities. Do not bid on a refurbishment or BRRR basis without valuation and legal evidence.

Works Required

No physical defects or refurbishment requirements are evidenced. The priority is legal and technical due diligence on the lease, tenant obligations, repair liabilities, services and the unlet element before budgeting works.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be underwritten because no supported GDV, refurbishment budget or refinance valuation is available. The stated lease on 40 Market Square is close to expiry at the analysis date, and the property is only part let, so refinanceability and future income are uncertain.

Buy-to-Let Analysis

This is commercial property rather than residential BTL. Based on the stated rent of £29,500 per annum and the £275,000 guide, the headline gross yield is 10.73%. On the guide plus the stated £1,800 administration charge, it is approximately 10.66%. Net yield cannot be established because operating costs, voids, insurance, repairs, service charges and any disbursements are unknown. The lease expiry and incomplete occupancy position are material concerns.

Flip Analysis

A flip or resale surplus cannot be calculated reliably. The supplied sales evidence lacks sufficient comparability, and no refurbishment, selling-cost or supported GDV assumptions are available.

Investor Risks & Due Diligence

• The stated 10-year lease of 40 Market Square is due to expire on 2 October 2026, creating immediate renewal, vacancy and re-letting risk.

• The property is part let, but the income and occupancy position of the remaining accommodation are not quantified.

• No sufficiently specific external rental comparables or auctioneer rent estimate are provided.

• The two supplied sale comparables lack accommodation, condition and income detail and are not sufficient to establish value.

• Buyer disbursements may be payable but are not quantified; only the £1,800 administration charge is stated.

• Leasehold repair, insurance, service charge, alteration and other legal obligations are not provided.

Recommendation

Income-led commercial acquisition only if the legal pack confirms secure continuing income, acceptable tenant covenant and manageable leasehold liabilities. Do not bid on a refurbishment or BRRR basis without valuation and legal evidence.

Strategy Rating

Analysis Confidence

The guide, tenure, accommodation and stated rent are available, but there are no specific rental comparables, reliable valuation comparables, condition assessment, operating costs, tenant covenant details or confirmed post-expiry lease position.