6A High Street, Hythe, Southampton, Hampshire, SO45 6AH

Description

A Mid Terrace Building Arranged to Provide a Ground Floor Commercial Unit and First Floor Ancillary Space Fully Let to The Lure Lodge Ltd Producing £12,500 Per Annum

Accommodation

Ground Floor: Commercial Unit. First Floor: Ancillary Space.

Location

Situated on a pedestrianised road close to local shops and amenities. Nearby multiples include Waitrose, Domino's and Costa Coffee. The open spaces of Prospect Place Park are within easy reach. Transport links are provided by Beaulieu Road rail station.

Tenure / Property Information

Investment Analysis

The subject is a freehold, fully let high-street commercial property producing £12,500 per annum. The closest supplied evidence comprises freehold properties on the same High Street sold for £150,000 and £165,000 in April 2022. A £200,000 sale from 2019 provides a higher, older reference point, while property sizes, condition and detailed lease terms are not supplied. On that limited evidence, an indicative GDV range of £150,000–£200,000 is used, with a base estimate of £157,500 reflecting the two closest 2022 comparables. This is an estimate rather than a formal valuation.

Investment Snapshot

Strategy Recommendation

Investigate as an income-led commercial freehold purchase, subject to legal-pack review, tenant covenant assessment, lease verification and confirmation that the passing rent is sustainable. Do not bid above a separately underwritten commercial valuation and cost budget.

Works Required

No refurbishment works are evidenced. Allowance should be made only after reviewing the legal pack, inspection information and any requirements affecting the commercial unit or first-floor ancillary space.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the base GDV estimate of £157,500, 75% refinance proceeds would be approximately £118,125. A complete BRRR assessment cannot be established because refurbishment costs, total acquisition costs, finance costs, lender terms and disbursements are not supplied. Commercial refinance eligibility and valuation would also require lender and legal confirmation.

Buy-to-Let Analysis

The property is fully let to The Lure Lodge Ltd for five years commencing 28 September 2023 at £12,500 per annum. Against the £90,000 guide, the gross rent yield is approximately 13.89% before finance, purchase costs, maintenance, voids, taxation and other commercial-property expenses. No sufficiently specific external rental evidence is available, and the passing rent should not be treated as an achieved market rent beyond the stated lease terms.

Flip Analysis

The supplied comparables indicate potential resale value above the guide, but a reliable flip surplus cannot be calculated because works, acquisition costs, selling costs, disbursements and the property's exact size and condition are unknown. The property is also currently let, which may constrain vacant-possession resale options during the stated lease term.

Investor Risks & Due Diligence

• Tenant covenant and ability of The Lure Lodge Ltd to maintain the stated rent are not evidenced.

• The lease is stated to run for five years from 28 September 2023; renewal, break provisions, repair obligations and rent review details are not supplied.

• Property size, condition and the relationship between the ground-floor unit and first-floor ancillary space are not supplied.

• Buyer disbursements and other potential special-condition charges are unknown.

• Commercial finance and refinance terms are not evidenced.

• The supplied comparable sales differ in property description and date, limiting valuation precision.

Recommendation

Investigate as an income-led commercial freehold purchase, subject to legal-pack review, tenant covenant assessment, lease verification and confirmation that the passing rent is sustainable. Do not bid above a separately underwritten commercial valuation and cost budget.

Strategy Rating

Analysis Confidence

The rent, tenure, occupancy, guide price and several same-street completed sales are supplied, but there is no floor area, condition evidence, EPC, detailed lease information, external rental evidence, refurbishment budget or complete fee schedule.