48 Lumley Road, Skegness, Lincolnshire

Description

Freehold investment let to British Heart Foundation with a gross yield of 11.9%. In the same ownership for over 28 years. 7 week completion. VAT is not applicable to this lot.

Accommodation

Ground floor shop: gross frontage approximately 21'9", built depth approximately 47'9", area approximately 802 sq ft, WC. First floor ancillary storage: approximately 302 sq ft. Total area approximately 1,104 sq ft. Areas taken from VOA and not inspected by Barnett Ross.

Location

Prominent trading position within the town's main prime retail thoroughfare, amongst retailers including Boots, Specsavers, HSBC, Lloyds Bank, Domino's, Holland & Barrett, Greggs, Select, New Look and Savers. Skegness Station and the seafront are both under a 5-minute walk away. Skegness is a popular retail centre and seaside resort on the East Lincolnshire coastline, with road links to the A16 and A52, approximately 22 miles north-east of Boston and 43 miles east of Lincoln.

Tenure / Property Information

Investment Analysis

The guide is £120,000 and the auction particulars state a gross yield of 11.9%, implying approximately £14,280 annual rent if that yield is calculated against the guide price. The property is let to British Heart Foundation on a full repairing and insuring lease, with a tenant break in August 2028. Historic Land Registry evidence includes a sale of this property for £200,000 in May 2019, but the comparables are dated and do not establish a current market value. A reliable GDV or current investment valuation cannot therefore be established from the supplied evidence.

Investment Snapshot

Strategy Recommendation

Consider as a commercial income hold only after verifying the passing rent, lease, tenant break provisions, legal pack and all acquisition costs. Do not rely on a refurbishment or flip strategy without current valuation evidence.

Works Required

No refurbishment works are identified in the supplied evidence. The property is occupied under a full repairing and insuring lease. Physical condition, services and the stated floor areas have not been inspected or independently verified. Allow for legal, lease-review and condition due diligence rather than assuming a refurbishment budget.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be underwritten reliably because no current valuation, verified passing rent, refurbishment cost or refinance terms are supplied. The 75% GDV refinance calculation is therefore unsupported. The opportunity appears more suited to holding for contracted income than to a refurbishment-led refinance.

Buy-to-Let Analysis

This is an income-led commercial investment rather than a residential BTL. Applying the stated 11.9% gross yield to the £120,000 guide implies £14,280 annual rent, or £1,190 pcm, but the actual passing rent is not supplied and the yield basis is not confirmed. On the guide plus the known £1,500 administration charge, the implied gross yield is approximately 11.75%, excluding any other auction, legal, finance, tax or operational costs. The FRI lease and long occupation are positive features, but the August 2028 tenant break is a material risk.

Flip Analysis

A flip is not supported by the evidence. The available sales are historic, including this property at £200,000 in 2019, and no current GDV or selling-cost allowance is available. The property is also occupied under a lease, so vacant possession and resale timing would require specific legal and market analysis.

Investor Risks & Due Diligence

• The tenant has a contractual break in August 2028, which could affect income and value if exercised.

• The actual passing rent and rent review provisions are not supplied; the £14,280 annual figure is only implied from the stated yield and guide price.

• Additional non-optional auction fees and costs may apply and are not quantified.

• The areas are taken from VOA data and were not inspected by the auctioneer.

• Historic comparable sales do not establish a current market value.

• The full legal pack and special conditions must be reviewed before bidding.

Recommendation

Consider as a commercial income hold only after verifying the passing rent, lease, tenant break provisions, legal pack and all acquisition costs. Do not rely on a refurbishment or flip strategy without current valuation evidence.

Strategy Rating

Analysis Confidence

The lease structure, tenant, tenure, guide price, stated yield, accommodation and one relevant historic sale are supplied, but the passing rent, current valuation, condition, EPC and full purchase costs are not.