61 Northgate and 9a/B Kings Mews, Canterbury

Description

The property is arranged over ground and two upper floors to provide a ground floor shop with 2 self-contained flats above, one sold off on a long lease. The first floor flat, which is vacant, is a 1 bedroom flat. There is a flying freehold over the adjoining building.

Accommodation

Ground Floor: 33.2 sq m (357 sq ft); First Floor (Resi): 40.50 sq m (436 sq ft); Second Floor (Resi): 80 sq m (861 sq ft); Total: 153.7 sq m (1,654 sq ft)

Location

The property is situated on the north side of Northgate, close to its junction with Broad Street in a mixed commercial and residential area. Canterbury is a major commercial, tourist and administrative centre located 60 miles south east of London. Nearby occupiers include a range of local retailers. The city lies on the A2, providing access to Dover to the south east and the M2 and M25 to the north west. Canterbury East and West Rail Stations provide frequent services to London.

Tenure / Property Information

Investment Analysis

The £180,000 guide is not independently supportable from the supplied evidence. Nearby completed sales range from £120,000 to £665,000, but they are dated, relate to different property types and do not provide a sufficiently reliable comparison for this mixed-use freehold with a shop, a vacant one-bedroom flat and a second-floor flat sold on a long lease. Current shop rent, ground rent, lease terms, flat condition and market rents are unavailable.

Investment Snapshot

Strategy Recommendation

Do not bid on the current evidence alone. Obtain the legal pack, shop lease and rent details, long-lease and ground-rent information, inspection findings, market rent evidence and a specialist valuation before considering purchase.

Works Required

No specific works are evidenced. The vacant first-floor one-bedroom flat would require inspection and costing before any refurbishment allowance can be made. The shop and common parts should also be inspected, with particular attention to the flying freehold and lease arrangements.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR cannot be underwritten from the evidence. Purchase cost, refurbishment cost, achievable rent and refinance value are all insufficiently evidenced. The long-lease sale of the second-floor flat and the flying freehold may complicate valuation and refinancing.

Buy-to-Let Analysis

A BTL yield cannot be established because no sufficiently specific rent evidence is supplied for the vacant first-floor flat, and the passing shop rent and any ground rent from the long-lease flat are not stated. The shop lease expires in 2036, but its rent, review provisions and other terms are unknown.

Flip Analysis

A flip appraisal cannot be supported. There is no reliable GDV, refurbishment budget or selling-cost allowance, and the supplied sales are not sufficiently comparable to establish an exit value.

Investor Risks & Due Diligence

• The shop is let until 2036, but the passing rent, rent reviews, repairing obligations and other lease terms are not supplied.

• The first-floor one-bedroom flat is vacant, with no condition report or rental evidence provided.

• The second-floor flat has been sold on a long lease, but the lease length, ground rent and income terms are unknown.

• A flying freehold exists over the adjoining building and may create legal, maintenance and mortgageability issues.

• Buyer, administration and other transaction costs are not quantified.

• The supplied completed sales are dated and materially different property types, limiting valuation confidence.

Recommendation

Do not bid on the current evidence alone. Obtain the legal pack, shop lease and rent details, long-lease and ground-rent information, inspection findings, market rent evidence and a specialist valuation before considering purchase.

Strategy Rating

Analysis Confidence

Core underwriting inputs are missing, including current rents, lease economics, condition, refurbishment costs, fees and reliable comparable evidence.