5 & 5a Sedlescombe Road North, Silverhill, St Leonards-on-Sea, TN37 7DA

Description

A freehold mixed-use investment comprising an approximately 807 sq ft commercial unit with an approximately 517 sq ft self-contained one-bedroom flat above. The entire property is let on an overriding lease at £20,750 per annum until April 2043, with future potential to separately let or dispose of the commercial and residential elements. Pizza GoGo Ltd reports turnover of approximately £41.8m and net assets of £18.7m.

Accommodation

Commercial unit approximately 807 sq ft; Flat 5a approximately 517 sq ft; total approximately 1,324 sq ft.

Location

Situated on Sedlescombe Road North, St Leonards-on-Sea, within an established residential and commercial area close to local shops, amenities and transport links, with easy access to Hastings and the A21. St Leonards Warrior Square railway station is approximately 1 mile away, providing regular rail services to London and across the South East.

Tenure / Property Information

Investment Analysis

The £170,000 guide price is supported by a contracted passing rent of £20,750 per annum, implying a gross yield of approximately 12.21% before acquisition costs, finance, management, insurance and other expenses. No completed sales, investment yield comparables or sufficiently specific rental comparables are supplied, so GDV, market value and a maximum bid cannot be reliably estimated. The buyer fee is unspecified and VAT or seller charges may apply, although the investment is described as VAT free.

Investment Snapshot

Strategy Recommendation

Consider as an income-led freehold mixed-use investment, subject to review of the overriding lease, tenant covenant, break options, rent reviews, title, condition and all auction charges. Do not rely on a refurbishment, BRRR or vacant-possession resale strategy without further evidence.

Works Required

No refurbishment works or defects are evidenced. Allow for normal inspection, compliance checks and any works identified by professional surveys, but no numeric works allowance is supported.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed because no GDV, refinance valuation, refurbishment budget, lender terms or acquisition-cost schedule is supplied. The existing lease and occupied status may support an income-led investment case, but the overriding lease, tenant break options and future rent reviews need review before relying on refinance or future income.

Buy-to-Let Analysis

The property is occupied under an overriding 20-year lease to Pizza GoGo Ltd from 28 April 2023 to 27 April 2043 at £20,750 per annum. Against the £170,000 guide, the headline gross yield is approximately 12.21%. This is based on contracted rent rather than an external rental valuation. Net yield cannot be established because acquisition fees, VAT or seller charges, operating costs, insurance, finance and tax are not supplied. Tenant break options and rent reviews in 2028, 2033 and 2038 require legal and lease due diligence.

Flip Analysis

A flip analysis is not supported. No sales comparables, GDV, refurbishment budget or selling-cost allowance is supplied, and the property is occupied under a long overriding lease to April 2043. Any resale value may therefore be investment-led rather than based on vacant possession.

Investor Risks & Due Diligence

• The buyer premium is unspecified and VAT or seller charges may apply; the special conditions must be reviewed.

• The entire property is subject to an overriding lease to Pizza GoGo Ltd, so income and control depend on the lease and tenant covenant.

• Tenant break options and rent reviews occur in 2028, 2033 and 2038, creating future income and occupancy uncertainty.

• No independent rental, investment-yield or completed-sales evidence is supplied.

• No EPC, council tax, parking or heating information is supplied.

• The property is occupied, so vacant possession or immediate separate letting of the commercial and residential elements cannot be assumed.

Recommendation

Consider as an income-led freehold mixed-use investment, subject to review of the overriding lease, tenant covenant, break options, rent reviews, title, condition and all auction charges. Do not rely on a refurbishment, BRRR or vacant-possession resale strategy without further evidence.

Strategy Rating

Analysis Confidence

The passing rent, guide price, tenure, accommodation and lease terms are supplied, but there are no sales comparables, rental comparables, GDV evidence, works budget, buyer fee or complete acquisition-cost details.