58-68 Plasmawr Road, Fairwater, Cardiff, CF5 3JX

Description

A mid-terraced retail parade comprising 6 mixed use investments. Each commercial unit has a three-bedroom maisonette above and has been sold off on a long leasehold basis. The units currently provide a combined ground rental income of £150 per annum. The retail units have been extended at the rear with garages/storage units at the bottom of their demise.

Accommodation

Six commercial units, each with a three-bedroom maisonette above. Rear extensions with garages/storage units.

Location

The parade overlooks green space and has a parking area to the front in a popular suburb of Cardiff. It has a good level of footfall and is located close to Ysgol Plasmawr, with amenities, transport links to Cardiff city centre, and access to the A48 and M4.

Tenure / Property Information

Investment Analysis

The property comprises six freehold mixed-use units, but the commercial units and maisonettes have been sold on long leasehold interests. The evidenced income is only £150 per annum in aggregate, being £25 ground rent per unit. The supplied sold comparables are older residential terraced sales and do not establish a reliable value for this mixed-use freehold reversion. No supported GDV, refurbishment value or market rent can therefore be calculated. The £82,000 guide equates to approximately 0.18% gross income yield before costs, based only on the stated ground rent.

Investment Snapshot

Strategy Recommendation

Do not bid on a BTL, BRRR or refurbishment basis. Consider only as a specialist freehold reversionary investment after full legal-pack review confirms the lease terms, future ground-rent rights and all landlord liabilities.

Works Required

No specific physical works are evidenced. Undertake inspection and legal-pack review, including confirmation of each long lease, ground-rent provisions, expiry dates, demises, rear extensions, garages/storage areas and repair liabilities before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be supported from the supplied evidence. There is no evidenced vacant or lettable residential accommodation, refurbishment budget, market rent, GDV or refinance valuation. The asset appears to provide a long-term ground-rent/reversionary interest rather than immediate residential cash flow.

Buy-to-Let Analysis

This is not supported as a conventional BTL opportunity because the residential maisonettes have been sold off on long leases and no assured rental income is evidenced. The freehold currently produces only £150 per annum. On the £82,000 guide, the stated ground-rent yield is approximately 0.18% before the £900 buyer premium, minimum £2,100 administration charge and any other costs.

Flip Analysis

A flip appraisal cannot be supported. The supplied comparables are residential terraced sales from 2012 to 2019 and are not sufficiently comparable to this freehold mixed-use parade with long leasehold disposals. No supported GDV, works allowance or selling-cost allowance is available.

Investor Risks & Due Diligence

• Current combined income is only £150 per annum.

• Most leases reportedly have between 27 and 38 years remaining, creating lease-term and reversion timing risk.

• The individual lease terms, rents and landlord obligations require confirmation from the legal pack.

• No sufficiently specific rental comparables or auctioneer rent estimate are supplied.

• The supplied sold comparables are older residential terraced transactions and may not reflect this mixed-use freehold interest.

• Buyer premium, minimum administration charge and potentially additional search, seller-cost, legal and transfer charges reduce returns.

Recommendation

Do not bid on a BTL, BRRR or refurbishment basis. Consider only as a specialist freehold reversionary investment after full legal-pack review confirms the lease terms, future ground-rent rights and all landlord liabilities.

Strategy Rating

Analysis Confidence

The tenure structure and current ground-rent income are stated, but there is no reliable mixed-use valuation evidence, rental evidence, condition survey, refurbishment budget or auctioneer rent estimate. Individual lease terms require legal-pack confirmation.