48-50 Carnarvon Road, Clacton-on-Sea, CO15 6QA

Description

The property comprises a high yielding mixed-use investment opportunity with evident asset management potential. It is arranged as a roadside site with a retail unit to the front and a large social club unit to the rear. The property is currently part-let and producing £26,340 per annum. The retail unit is currently vacant and offers asset management potential via letting.

Accommodation

Retail unit to the front and large social club unit to the rear.

Location

Prominent position fronting Carnarvon Road, adjacent to Clacton-on-Sea railway station. Carnarvon Road is the principal route connecting Clacton-on-Sea station to the seafront.

Tenure / Property Information

Investment Analysis

The £225,000 guide equates to an 11.71% gross yield on the stated current income of £26,340 per annum. The auctioneer estimates whole-property income of approximately £35,000 per annum when fully let, equivalent to a 15.56% gross yield at the guide. The vacant retail unit provides stated asset-management potential, but no capitalisation yield, formal valuation, condition report, buyer fee or VAT figure is supplied. The residential sold comparables are flats/maisonettes and are not directly comparable to this mixed-use property.

Investment Snapshot

Strategy Recommendation

Prioritise an income-led hold with active letting of the vacant retail unit, subject to confirming the lease, legal position, condition, compliance requirements and all auction costs. Do not bid above a separately established commercial valuation and target yield.

Works Required

No physical refurbishment works are evidenced. The supported plan is to market and let the vacant retail unit, while reviewing the existing social-club lease and confirming the condition, statutory compliance and suitability of both units before committing to works.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be reliably underwritten because no GDV, capitalisation yield, refurbishment budget, finance terms or buyer-fee amount is supplied. Refinance proceeds and cash left in therefore remain unsupported. The long lease and existing social-club income may support an income-led hold, subject to lease, tenant and lender due diligence.

Buy-to-Let Analysis

This is a commercial/mixed-use income investment rather than a residential BTL. Current stated income is £26,340 per annum, producing an 11.71% gross yield against the £225,000 guide. The auctioneer’s fully-let estimate of £35,000 would produce a 15.56% gross yield, but the retail income is not yet secured. Net yield cannot be established because operating costs, buyer fees, VAT and other charges are unavailable.

Flip Analysis

A flip or resale surplus cannot be calculated from the supplied evidence. No mixed-use comparable sales, formal GDV, condition assessment, refurbishment budget, selling costs or buyer-fee amount is provided. The residential comparables on Carnarvon Road are not suitable evidence for this property.

Investor Risks & Due Diligence

• The retail unit is vacant and the £35,000 whole-property rent is only an auctioneer estimate, not achieved income.

• The social club lease expires on 31 December 2031; renewal, re-letting and covenant risks are not evidenced.

• Buyer fees, VAT and any seller’s charges are not quantified and could materially increase acquisition cost.

• No condition, statutory compliance, EPC, insurance, service-charge or operating-cost information is supplied.

• The supplied sold comparables are residential flats/maisonettes and do not establish a reliable mixed-use market value.

• Leasehold title and the approximately 143-year unexpired term require legal and lender due diligence.

Recommendation

Prioritise an income-led hold with active letting of the vacant retail unit, subject to confirming the lease, legal position, condition, compliance requirements and all auction costs. Do not bid above a separately established commercial valuation and target yield.

Strategy Rating

Analysis Confidence

Current passing income, fully-let rental estimate, tenure, lease term, occupancy and guide price are supplied, but there is no commercial valuation evidence, capitalisation yield, condition information, buyer-fee amount, VAT figure or operating-cost data.