58-60 St. Lukes Terrace, Sunderland, Tyne & Wear

Description

Comprises a ground-floor takeaway restaurant with 2 flats above. Majority let to DP Realty Ltd and Sunderland DP Ltd (t/a Domino's). Retail let on a lease expiring 2040 (no breaks). Total accommodation of approx. 102.75 sq m (1,106 sq ft). Situated close to Sunderland Rail Station. Occupiers close by include Heron Foods and Papa Johns. VAT is applicable.

Accommodation

Ground-floor takeaway restaurant with 2 flats above; total accommodation of approx. 102.75 sq m (1,106 sq ft)

Location

Sunderland is situated on the River Wear, approximately 11 miles south-east of Newcastle upon Tyne, and is a well established retail and commercial centre. The property is situated on the west side of St. Lukes Terrace, close to its junction with Forfield Road. It is situated close to Sunderland Rail Station. Occupiers close by include Heron Foods, Papa Johns and Dixy Chicken.

Tenure / Property Information

Investment Analysis

The £410,000–£430,000 guide cannot be independently validated from the supplied evidence. Nearby Land Registry sales range from £8,000 to £180,000, but the properties differ in type, size and use, and no directly comparable investment sale or rental income evidence is provided. The property's value is materially dependent on the actual passing rent, lease terms, tenant covenant and VAT treatment, none of which are supplied in sufficient detail.

Investment Snapshot

Strategy Recommendation

Do not bid on the supplied information alone. Obtain and verify the occupational leases, passing rent, tenant covenant, residential flat tenancies, VAT position, condition and full auction legal pack before considering an income-investment purchase.

Works Required

No specific refurbishment works are evidenced. Verify the condition of the takeaway premises, two flats, services, fire safety, statutory compliance and any repair obligations before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR cannot be reliably assessed without a supported GDV, actual rent, refurbishment budget, lease information and finance-related costs. The long retail lease may support income continuity, but its value and refinanceability cannot be tested from the supplied evidence.

Buy-to-Let Analysis

BTL yield cannot be established because no passing rent, residential rent or sufficiently specific rental evidence is supplied. The property is predominantly described as let to DP Realty Ltd and Sunderland DP Ltd, with the retail lease expiring in 2040 and no breaks, but the rent and full lease terms are unavailable.

Flip Analysis

A flip appraisal is not supportable because no evidence-based GDV, refurbishment cost or selling-cost allowance is available. The nearby sales are insufficiently comparable to establish a resale value for this mixed-use property.

Investor Risks & Due Diligence

• No passing rent or rental schedule is supplied, preventing yield and debt-service assessment.

• The retail lease runs to 2040 with no breaks, so lease terms and tenant covenant require detailed legal review.

• VAT is applicable, creating a material acquisition-cost and cash-flow consideration that cannot be quantified from the supplied data.

• Additional seller or third-party charges may apply, but no amounts are provided.

• The property is mixed use with two flats, but the residential tenancy, compliance and condition details are not supplied.

• The available sold comparables vary substantially in type and price and do not establish a reliable value for this asset.

Recommendation

Do not bid on the supplied information alone. Obtain and verify the occupational leases, passing rent, tenant covenant, residential flat tenancies, VAT position, condition and full auction legal pack before considering an income-investment purchase.

Strategy Rating

Analysis Confidence

The property description and tenure are supplied, but key valuation inputs are missing, including passing rent, residential rents, lease details, condition, EPC, costs, VAT impact and directly comparable investment evidence.