5-11 Lombard Street, Stourport-on-Severn, DY13 8DP

Description

An attractive freehold mixed use town centre investment property comprising three retail units, five self contained flats and a series of outbuildings which may be suitable for conversion subject to planning. Current rental income £56,630 PA.

Accommodation

Three retail units: No. 5/7, trading as Ellie Jay, 578 sq ft (53.7 sqm); No. 9, trading as SCD Doors, 1,382 sq ft (128.4 sqm); No. 11, trading as Serendipity, 529 sq ft (49.2 sqm). Flats: 5A – living room, kitchen, one bedroom, bathroom; 5B – living room, kitchen, one bedroom, bathroom; 7B – living room, kitchen, one bedroom, bathroom; 9A – living room, kitchen, two bedrooms, bathroom; 11A – living room, kitchen, one bedroom, bathroom. Outbuildings: Rear Store 1, 94 sq ft (8.7 sqm); Rear Store 2, 140 sq ft (13 sqm); Small Detached Store/External WC, 28 sq ft (2.6 sqm).

Location

The property occupies a prominent frontage just off the High Street in a busy trading location opposite several on-street car parking spaces. It is close to Tannery Park, anchored by B&M with a 145-space customer car park, and other car parks. Stourport-On-Severn is a popular tourist town with a riverside setting, historic canals, riverside walks, parks and cultural experiences. Nearby occupiers include Tesco, Lidl, Superdrug, Costa Coffee and Specsavers.

Tenure / Property Information

Investment Analysis

The property is a freehold mixed-use investment comprising three retail units and five flats, with stated current rental income of £56,630 per annum. The £475,000+ guide equates to approximately 11.9% gross income yield before acquisition costs. The supplied sold comparables are other properties or a market and do not provide sufficiently detailed, directly comparable evidence to establish a reliable GDV. The rental listing at £1,400 pcm is not sufficiently specific to value this mixed-use property and has not been used in the calculations. Tenancy documentation was not available, so passing rents, lease terms and obligations require legal-pack verification.

Investment Snapshot

Strategy Recommendation

Investigate as an income-led mixed-use hold rather than a flip or BRRR project, subject to satisfactory verification of the leases, tenancy agreements, rent receipts, repairing liabilities, arrears position and legal-pack costs.

Works Required

No specific defects or remedial works are evidenced. The immediate requirement is review of the leases, tenancy agreements, rent schedule, repairing obligations and outbuilding status. The outbuildings may have conversion potential subject to planning, but no conversion allowance is assumed.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be reliably completed because no GDV, refurbishment budget, finance terms or comparable valuation evidence is supplied. The asset is already let and produces stated income, but refinance proceeds cannot be calculated without a supported GDV. Any outbuilding conversion should be treated as speculative and subject to planning.

Buy-to-Let Analysis

At the £475,000 guide, the stated £56,630 annual income produces an indicative gross yield of 11.92% before the £2,700 administration charge, SDLT, legal costs, finance, management, maintenance, voids and other outgoings. The income is attractive on the supplied figures, but the leases and tenancy agreements had not been seen. Net yield and income security cannot be assessed until the legal pack and rent schedule are verified.

Flip Analysis

A flip appraisal is unsupported. No refurbishment cost, resale GDV, selling allowance or directly comparable evidence is provided. The property is currently let, and the existing tenancies and legal obligations would need to be understood before considering vacant possession or redevelopment strategies.

Investor Risks & Due Diligence

• Lease and tenancy documentation had not been seen and may reveal obligations, restrictions or inconsistencies with the stated income.

• The £56,630 annual rent is stated current income, but rent receipts, arrears, deposits, reviews and full occupational terms are not supplied.

• Retail and flat income may be affected by vacancies, tenant default, lease expiry or renewal risk.

• Outgoings, repairs, insurance, management costs, voids and service liabilities are not provided, so net income cannot be calculated.

• Additional completion costs may apply under the special conditions, beyond the stated £2,700 administration charge.

• The outbuildings' potential conversion is subject to planning and has no supported value or cost allowance.

• The supplied sold comparables are not sufficiently detailed or directly comparable to establish market value.

Recommendation

Investigate as an income-led mixed-use hold rather than a flip or BRRR project, subject to satisfactory verification of the leases, tenancy agreements, rent receipts, repairing liabilities, arrears position and legal-pack costs.

Strategy Rating

Analysis Confidence

The guide price, stated annual income, accommodation and tenure are supplied, but tenancy documents were not seen, outgoings are absent, the rental evidence is not property-specific, and the sold comparables do not support a reliable GDV.