59-67 High Street & 1-5 Stephen Close, Broadstairs, Kent, CT10 1JL

Description

An excellent freehold investment situated in the heart of Broadstairs high street, comprising an end-terrace block of four shops with five maisonettes above. All the shops are currently let and each of the maisonettes have been sold on long leases. There is a parking area to the rear and 65-67 High Street also has two garages.

Accommodation

End-terrace block comprising four shops and five maisonettes above. Commercial units: 59 High Street, 61 High Street, 63 High Street, and 65 & 67 High Street. Residential units: Flat 1, Flat 2, Flat 3, Flat 4 and Flat 5, Steven Close.

Location

Town centre location in Broadstairs, close to the mainline railway station and seafront.

Tenure / Property Information

Investment Analysis

The £400,000+ guide is the only stated pricing evidence. The £260,000 May 2024 sale of 53 High Street is described only as another freehold property and is not sufficiently detailed to establish comparability. The property is an income-producing freehold mixed-use block, but no passing rents, rent schedule, lease premiums, service-charge information or commercial valuation evidence is supplied. The five maisonettes have been sold on long leases, so the freehold does not provide vacant residential possession or clearly evidenced residential rental income. Market value and GDV cannot therefore be reliably established from the supplied evidence.

Investment Snapshot

Strategy Recommendation

Consider only as an income-investment acquisition after obtaining the full rent roll, commercial leases, tenant payment history, long-lease details, title information and all auction fees. Do not bid above a separately evidenced income-based valuation.

Works Required

No refurbishment or repair works are evidenced. The appropriate immediate action is legal, lease and building due diligence rather than assuming a works budget.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR is not supported by the evidence. The residential units have already been sold on long leases, while the commercial units are occupied by tenants. There is no supported refurbishment opportunity, rent schedule, GDV or refinance valuation, and unknown auction-related charges would also affect total cost.

Buy-to-Let Analysis

A conventional BTL yield cannot be calculated. The five maisonettes are held on long leases and no residential passing rents are supplied. The four shops are let, but their rents, deposits, review outcomes and current payment status are not provided. The advertised residential rents are asking rents for unspecified properties and cannot be reliably applied to these maisonettes.

Flip Analysis

A flip or redevelopment surplus cannot be established. The property is a tenanted freehold investment with long-lease residential interests, not evidenced vacant accommodation. No supported GDV, works allowance, selling-cost allowance or comparable valuation basis is available.

Investor Risks & Due Diligence

• No passing rents or rent schedule is supplied, preventing income and yield analysis.

• The five maisonettes have been sold on long leases, limiting the freehold's residential control and income potential.

• 61 High Street is occupied under a tenant holding over under the original lease.

• Commercial lease review terms, current rent levels and tenant payment performance are not provided.

• An administration fee and other non-optional costs may be payable, but the amounts are unknown.

• Stamp Duty, Land Registry fees and VAT may be payable in addition to the bid price.

Recommendation

Consider only as an income-investment acquisition after obtaining the full rent roll, commercial leases, tenant payment history, long-lease details, title information and all auction fees. Do not bid above a separately evidenced income-based valuation.

Strategy Rating

Analysis Confidence

The guide price and basic tenancy/lease structure are supplied, but there are no passing rents, commercial income details, residential lease terms beyond headline dates, full comparable evidence, valuation, works budget or stated auction charges.