52-58 High Street, Dunfermline

Description

The property comprises a ground floor retail unit within a modern larger building. The property benefits from being a full depth unit with rear servicing via Queen Anne Street. The upper floors are in separate ownership. Key features include a retail unit let to Poundstretcher Ltd, a fixed uplift in rent to £50,000 per annum in 2028, and a prominent High Street location. Investment let at £45,000 per annum, stated as 18% GIY on guide price.

Accommodation

Ground floor full-depth retail unit with rear servicing via Queen Anne Street. Upper floors are in separate ownership.

Location

Prominently located on the north side of the High Street, Dunfermline's main retailing street, within a short walk of Kingsgate Shopping Centre. Nearby occupiers include Virgin Money, Santander, Yorkshire Building Society, Clarks, Trespass, Savers, Greggs and Betfred. Dunfermline is stated to be the largest town in Fife, with a population of 55,000. Roads: M90, A92 and A985. Rail: Dunfermline, 40 minutes to Edinburgh Waverley. Edinburgh International Airport is 11 miles south.

Tenure / Property Information

Investment Analysis

The £250,000 guide equates to the stated 18% gross initial yield on the £45,000 per annum passing rent. On the supplied evidence, £250,000 is used as the base GDV/value proxy rather than a formal market valuation. The contractual uplift to £50,000 per annum would equate to a 20% gross yield at the guide price. No comparable investment sales, market yield evidence or buyer fee amount is supplied, so downside/upside valuation scenarios and a maximum bid cannot be reliably established.

Investment Snapshot

Strategy Recommendation

Consider only as a commercial income investment if the lease, tenant obligations, rent-free top-up and special conditions are satisfactory. Do not rely on the headline yield alone; confirm all buyer charges, VAT treatment and refinance terms before bidding.

Works Required

No refurbishment works are identified in the supplied description. Allowance is therefore £nil for the base calculations, subject to legal, building and survey review.

Rental & Market Context

Potential BRRR Position

Using the guide as the purchase figure and no evidenced refurbishment allowance, the base cost is £250,000. A 75% refinance against the £250,000 base GDV would be £187,500, leaving an indicative £62,500 before finance costs, tax and transaction charges. This is not a demonstrated cash-out refinance because lender valuation, loan terms, fees and the effect of the tenant break and rent-free period are unknown.

Buy-to-Let Analysis

This is a commercial retail investment rather than a residential BTL. The current contractual rent is £45,000 per annum, equivalent to £3,750 pcm and an 18% gross yield on the guide price. The rent-free period from 16 July 2026 to 15 January 2027 is stated to be topped up by the seller, but the value and mechanics of that top-up are not supplied. Rent increases to £50,000 per annum from 1 April 2028, subject to the stated lease terms. Net yield cannot be established because operating costs, insurance, maintenance, tax and finance costs are not supplied.

Flip Analysis

A flip analysis is not supported. The property is an income-producing commercial unit and no resale comparables, selling costs or market GDV evidence are supplied. Consequently, no reliable flip surplus is calculated.

Investor Risks & Due Diligence

• Rent-free period runs from 16 July 2026 to 15 January 2027; the seller's top-up amount and payment mechanics are not supplied.

• The tenant has a break option on 1 April 2031 with six months' notice, creating income and reletting risk.

• VAT may apply to the sale and the buyer's fee is unspecified, so the true acquisition cost is unknown.

• The upper floors are in separate ownership, so control of the wider building is not held by the purchaser.

• No external rental comparables, operating-cost information or investment-sale comparables are supplied.

• The tenancy is stated to run to April 2033 subject to option, but the precise lease provisions require legal verification.

Recommendation

Consider only as a commercial income investment if the lease, tenant obligations, rent-free top-up and special conditions are satisfactory. Do not rely on the headline yield alone; confirm all buyer charges, VAT treatment and refinance terms before bidding.

Strategy Rating

Analysis Confidence

The guide, current rent, uplift, rent-free period, lease break and occupancy are supplied, but there are no investment comparables, operating costs, buyer fee amount, VAT outcome, EPC or detailed lease/special-condition evidence.