44 Catcote Road, Hartlepool

Description

High yielding retail investment. Let to Coral Racing Limited, sublet to Alice House Hospice. Terms have been agreed directly with Alice House Hospice to take a new 10-year lease. The first-floor self-contained flat is let on an assured shorthold tenancy at £5,500 per annum. Investment let at £18,000 per annum. The property comprises a retail shop and self-contained flat arranged over ground and first floors. The shop fronts the parade and is accessed from Catcote Road. The flat benefits from its own access to the rear of the property along Walpole Road. The shop provides an open-plan layout finished to a good specification, including suspended ceiling tiles, recessed lighting panels, a carpeted floor and staff welfare facilities.

Accommodation

Ground Floor: 1,125 sq ft (104.55 sq m). First Floor: 872 sq ft (81 sq m). Total: 1,997 sq ft (185.55 sq m). Approximate areas have been provided by the VOA/Vendor/EPC and the property has not been internally inspected by Savills. Photos and yellow line drawings are for illustrative purposes only and may not reflect the exact site boundary.

Location

The shop fronts the parade and is accessed from Catcote Road. The self-contained flat has its own access to the rear of the property along Walpole Road.

Tenure / Property Information

Investment Analysis

The £90,000 guide is equivalent to a 20.0% gross yield on the stated £18,000 annual rent, before buyer costs, VAT and other charges. No reliable market-value evidence is supplied: the only comparable is a 2016 residential flat sale and is not directly comparable to this freehold retail-with-flat investment. A formal GDV cannot therefore be supported. The current ground-floor lease runs to 02 February 2027, while a new 10-year lease with a fifth-year break is described as agreed but not evidenced as completed.

Investment Snapshot

Strategy Recommendation

Consider as a cash-flow-focused commercial/mixed-use hold at or below the guide, subject to full legal and tenancy due diligence, confirmation of the new lease and inspection. Do not rely on a refinance or flip strategy without valuation and cost evidence.

Works Required

No specific refurbishment works are evidenced. The shop is described as finished to a good specification, but the property was not internally inspected. Allow for inspection, legal review and any repairs identified before exchange; no numeric works allowance is supported.

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, buyer-cost figure or refinance valuation is provided. The property is already let, so the principal case is income retention rather than a refurbishment-led uplift. Refinance assumptions should await confirmation of the leases, condition and lender valuation.

Buy-to-Let Analysis

The stated rent is £18,000 per annum: £12,500 from the ground floor and £5,500 from the flat. At the £90,000 guide this produces a 20.0% gross yield before buyer fees, VAT, seller charges, finance, insurance, maintenance, voids and management. The income is attractive on the supplied figures, but the ground-floor lease structure, proposed replacement lease and tenant covenant require legal verification. Net yield cannot be established from the evidence.

Flip Analysis

A flip surplus cannot be calculated because no supported resale GDV, refurbishment allowance or selling-cost allowance is supplied. The existing tenancies and agreed lease arrangements also make this primarily an income investment rather than an evidenced resale project.

Investor Risks & Due Diligence

• The ground-floor income is currently under a lease running only until 02 February 2027; the proposed new 10-year lease and fifth-year break are described as agreed but not evidenced as completed.

• The Coral Racing Limited lease and subletting arrangement with Alice House Hospice require legal review, including landlord consent, covenant strength and responsibility for obligations.

• Buyer fees, VAT and possible seller charges are not quantified and may materially reduce the effective yield.

• The property has not been internally inspected, so condition and compliance risks are unquantified.

• The flat tenancy terms beyond the stated £5,500 annual rent are not supplied.

• The stated areas and drawings are approximate and illustrative, with no internally verified measurement or exact boundary evidence.

Recommendation

Consider as a cash-flow-focused commercial/mixed-use hold at or below the guide, subject to full legal and tenancy due diligence, confirmation of the new lease and inspection. Do not rely on a refinance or flip strategy without valuation and cost evidence.

Strategy Rating

Analysis Confidence

The stated rents, tenure, occupancy, accommodation and guide price are available, but there is no internal inspection, formal valuation, relevant comparable evidence, buyer/admin fee detail, EPC information or confirmed executed replacement lease.