603 Leek Road, Stoke-On-Trent, Staffordshire ST1 3HQ

Description

A two storey mixed use investment opportunity. The whole building is let by way of an FRI Lease to A Fistful of Vapes Limited at £10,200 per annum from June 2024 for 5 years. There is also additional income received via a lease agreement for an advertising board on the side of the property. This generates £62.48 per annum. The accommodation comprises a ground floor sales area that extends to 360 sq.ft to the rear of which is a walkthrough store providing a further 81 sq.ft leading to a lobby area adjacent to the back door, beyond which is a ground floor bathroom. On the first floor is a one bedroomed flat comprising a lounge, kitchen, bedroom and shower room. Benefitting from gas central heating and own access.

Accommodation

Ground Floor: Sales Area - 360 sq.ft; Store - 81 sq.ft; WC - 44 sq.ft; Total - 485 sq.ft. First Floor: Lounge - 177 sq.ft; Kitchen - 41 sq.ft; Bedroom - 129 sq.ft; Shower Room - 30 sq.ft; Total - 377 sq.ft.

Tenure / Property Information

Investment Analysis

The property is offered at a £78,000+ guide and produces contractual income of £10,262.48 per annum, comprising £10,200 rent under the FRI lease and £62.48 advertising-board income. This equates to approximately 13.16% gross yield on the guide, or 12.91% including the stated £1,500 buyer fee. The historic subject-property sales (£52,000 in 2010 and £40,000 in 2004) are not sufficiently current for a reliable present-day market value. No current rental comparables, EPC, condition evidence or formal GDV evidence is supplied.

Investment Snapshot

Strategy Recommendation

Consider as a tenanted income hold, subject to satisfactory legal review of the FRI lease, tenant covenant, building condition and any additional auction fees. Do not rely on a BRRR or flip strategy without independent valuation evidence.

Works Required

No specific refurbishment works are supported by the evidence. Calculations assume no refurbishment allowance; inspection and review of the lease and building condition remain necessary.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed reliably because no supported GDV, refurbishment budget or refinance valuation is provided. The property is already let, so the principal evidence supports an income-hold strategy rather than a refurbishment-led refinance case.

Buy-to-Let Analysis

The existing FRI lease provides £10,200 per annum from June 2024 for five years, supplemented by £62.48 advertising income. The supported passing income is £855.21 per month equivalent. Gross yield is approximately 13.16% on the £78,000 guide and 12.91% after adding the £1,500 buyer fee. Net yield cannot be established because finance, insurance, taxation and other operating costs are not supplied. The tenant covenant and lease terms should be reviewed before bidding.

Flip Analysis

A flip surplus cannot be calculated because no current GDV, resale evidence or selling-cost allowance is supplied. The historic sales evidence is too old to establish a dependable resale value.

Investor Risks & Due Diligence

• The lease is stated to run for five years from June 2024, so its remaining term and expiry provisions require confirmation.

• Tenant covenant, payment history and the enforceability of the FRI obligations are not evidenced.

• No current comparable sales or sufficiently specific rental comparables are supplied.

• Building condition and any required capital expenditure are not evidenced.

• Additional fees may be listed in the Special Conditions of Sale and are not quantified.

Recommendation

Consider as a tenanted income hold, subject to satisfactory legal review of the FRI lease, tenant covenant, building condition and any additional auction fees. Do not rely on a BRRR or flip strategy without independent valuation evidence.

Strategy Rating

Analysis Confidence

Contractual rent, lease term, guide price, buyer fee and accommodation details are supplied, but there is no current market valuation, rental comparable evidence, condition report, EPC, or complete fee schedule.