7 - 7a & 7b Sedlescombe Road North, North Silverhill, St Leonards-on-Sea, TN37 7DA

Description

A freehold mixed-use investment providing approximately 5,221 sq ft of accommodation, arranged as a 4,015 sq ft convenience store with 2 x 603 sq ft two-bedroom flats above. Let as a whole to A.F. Blakemore & Son Ltd at £48,500 per annum until March 2028, the property benefits from an outstanding March 2026 rent review and offers asset management potential through the separate letting or disposal of the commercial and residential elements separately. A.F. Blakemore & Son Ltd is an established SPAR wholesaler and retailer with group revenue of approximately £1.09 billion.

Accommodation

Commercial unit approximately 4,015 sq ft. Flat 7a approximately 603 sq ft with 2 bedrooms. Flat 7b approximately 603 sq ft with 2 bedrooms. Total approximately 5,221 sq ft.

Location

Situated on Sedlescombe Road North, St Leonards-on-Sea, within an established residential and commercial area close to local shops, amenities and transport links, with easy access to Hastings and the A21. St Leonards Warrior Square railway station is approximately 1 mile away, providing regular rail services to London and across the South East.

Tenure / Property Information

Investment Analysis

The £440,000 guide equates to approximately £84 per sq ft across the stated 5,221 sq ft. The property is income-producing, with £48,500 p.a. stated under the overriding lease and an auctioneer-estimated potential ERV of £62,200 p.a. if the shop and flats were let separately. The supplied sold comparables are not sufficiently specific or comparable to support a formal GDV, and no capitalisation yield, detailed lease valuation or external rental comparables are provided. The outstanding March 2026 rent review and lease expiry in March 2028 are material valuation considerations. Buyer fees and any VAT are also unknown.

Investment Snapshot

Strategy Recommendation

Income-led hold with selective asset management, subject to satisfactory review of the overriding lease, March 2026 rent review, tenant covenant, VAT and the March 2028 expiry. Do not rely on the separate-letting ERV or a break-up strategy without further evidence.

Works Required

No physical defects or refurbishment requirements are evidenced. No refurbishment allowance has therefore been applied. Priorities are lease, rent-review, title, occupational and building due diligence, together with assessment of whether the commercial and residential elements can be separately let or disposed of after lease expiry.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be fully underwritten because no supported GDV, refurbishment budget, refinance valuation or lending assumptions are provided. The rent review, the March 2028 expiry of the overriding lease and the separate store underlease expiry create potential asset-management opportunities but also timing and re-letting risk. The existing income may support an income-led hold, subject to legal and tenant due diligence.

Buy-to-Let Analysis

The stated passing rent is £48,500 p.a., equivalent to approximately 11.02% against the £440,000 guide before buyer costs, VAT, finance and other expenses. The auctioneer estimates potential separate letting income of £62,200 p.a., equivalent to approximately 14.14% against the guide, but this is an estimate rather than achieved rent and no external rental evidence is supplied. The property is currently let as a whole to A.F. Blakemore & Son Ltd, so the separate-letting potential is subject to lease, possession and practical asset-management considerations.

Flip Analysis

A flip appraisal is not supported by the evidence. The supplied sales are described as other or terraced properties and do not establish a reliable resale value for this 5,221 sq ft mixed-use investment. No selling allowance, refurbishment budget, buyer costs, VAT treatment or supported GDV is available, so no flip surplus can be calculated.

Investor Risks & Due Diligence

• The overriding lease expires on 24 March 2028, creating re-letting, renewal and valuation uncertainty.

• The March 2026 rent review remains outstanding, so the stated £48,500 p.a. may change but no reviewed rent is evidenced.

• The investment is currently dependent on a single overriding tenant, A.F. Blakemore & Son Ltd.

• The £62,200 p.a. separate-letting figure is an auctioneer estimate rather than achieved rent, with no external rental comparables supplied.

• The store underlease expires on 22 March 2028 and is outside the Landlord and Tenant Act 1954.

• Buyer fees are excluded from the guide and VAT or other seller charges may apply, but amounts and treatment are not supplied.

• The flats remain within the overriding A.F. Blakemore & Son Ltd lease and are not included in the store underlease, so separate disposal or letting is not immediately established.

Recommendation

Income-led hold with selective asset management, subject to satisfactory review of the overriding lease, March 2026 rent review, tenant covenant, VAT and the March 2028 expiry. Do not rely on the separate-letting ERV or a break-up strategy without further evidence.

Strategy Rating

Analysis Confidence

The passing rent, lease structure, accommodation and guide are supplied, but there are no sufficiently comparable rental or valuation sales, no condition information, no buyer/admin fee, no confirmed VAT treatment and no supported capitalisation or resale assumptions.