6B High Street, Hythe, Southampton, Hampshire, SO45 6AG

Description

A Mid Terrace Commercial Building Fully Let to a Restaurant Producing £16,000 Per Annum. The property comprises a mid terrace building arranged to provide a ground floor commercial unit and first floor ancillary space.

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 property is a freehold, fully let commercial investment producing contractual rent of £16,000 per annum. The supplied sales evidence is mixed and relates to different high street properties, including two sales described only as “Other”; it does not provide a sufficiently specific basis for a property-level GDV or market value. At the £130,000 guide, the passing rent represents a gross yield of approximately 12.31% before costs. This is not a market-rent valuation, and tenant covenant, lease terms beyond those supplied, condition and any applicable legal-pack matters require review.

Investment Snapshot

Strategy Recommendation

Assess as a commercial income investment, subject to satisfactory legal-pack review, tenant covenant assessment, lease verification and inspection. Do not rely on a flip or BRRR strategy without valuation and cost evidence.

Works Required

No refurbishment works are identified in the supplied evidence. Confirm condition, repair obligations and any required works through inspection and the legal pack.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed because no supported GDV, refurbishment budget or refinance terms are available. The stated rent and freehold tenure may support an investment case, but refinancing proceeds cannot be calculated without a supported valuation and lender assumptions.

Buy-to-Let Analysis

This is a commercial letting rather than residential BTL. The existing contractual rent is £16,000 per annum, equivalent to approximately £1,333.33 per month, producing a gross yield of approximately 12.31% against the £130,000 guide. Net yield cannot be established because operating costs, insurance, repairs, voids, management and finance costs are not supplied. The lease is stated to run for 15 years from 25 March 2018, with the next rent review on 25 March 2033.

Flip Analysis

A flip analysis is not supported. No refurbishment requirement, resale GDV or selling-cost allowance is supplied, and the available comparable sales are not sufficiently specific or consistent to establish a resale value.

Investor Risks & Due Diligence

• The investment is dependent on the restaurant tenant continuing to pay the £16,000 annual rent; tenant covenant information is not supplied.

• The next stated rent review is not until 25 March 2033, so no earlier rental uplift should be assumed.

• No condition, repair liability, EPC or operating-cost information is supplied.

• Additional legal-pack disbursements may be payable, and the buyer premium is not supplied.

• The available sold comparables vary materially in price and property description and do not establish a reliable property-specific valuation.

Recommendation

Assess as a commercial income investment, subject to satisfactory legal-pack review, tenant covenant assessment, lease verification and inspection. Do not rely on a flip or BRRR strategy without valuation and cost evidence.

Strategy Rating

Analysis Confidence

The passing rent, guide price, tenure, occupancy and headline lease dates are supplied, but there is no sufficiently specific valuation evidence, market-rent evidence, condition assessment, EPC information, operating-cost data or complete fee schedule.