72-74 Marygate, Berwick-upon-Tweed

Description

The property is arranged over ground and one upper floor to provide two ground floor shops with an upper floor. Key features include a freehold retail parade investment well located on Marygate, an established trading location; let to Holland & Barrett and New Look; nearby occupiers including Boots, B&M and Greggs; and an asset management or owner occupier opportunity. VAT is applicable.

Accommodation

72/74 Marygate: Ground Floor - 187.94 sqm (2,023 sq ft); 1st floor - 66.43 sqm (715 sq ft); Sub-total - 254.37 sqm (2,738 sq ft). 74 Marygate: Ground Floor - 116.69 sqm (1,256 sq ft). Total - 371.06 sq m (3,994 sq ft).

Location

Occupying a prominent position on Marygate, Berwick-upon-Tweed's principal retailing thoroughfare, the property is situated in the heart of the town centre amongst a strong mix of national retailers. Nearby occupiers include Boots, B&M, Costa Coffee, Greggs, WHSmith, Sports Direct and Caffè Nero. Berwick-upon-Tweed is a historic market town located on the Northumberland coast, approximately midway between Newcastle upon Tyne and Edinburgh.

Tenure / Property Information

Investment Analysis

The £270,000 guide is below the supplied £310,000 sale of 70 Marygate, but the comparables vary substantially in size and are not sufficiently specific to establish a reliable market value for this two-shop parade. The £1,619,677 and £1,400,000 sales relate to materially larger holdings, while the £170,000 and £32,000 sales are not adequately comparable. No reliable GDV range can therefore be established. VAT and additional fees are also unspecified.

Investment Snapshot

Strategy Recommendation

Consider as a commercial income investment only after reviewing the occupational leases, tenant covenants, rent schedule, VAT position, title and building condition. Do not bid solely on the quoted ERV or headline guide-price yield.

Works Required

No specific repair or refurbishment works are evidenced. The property should be inspected for the condition of the retail units, upper floor, common/service areas and building services, with any works confirmed by survey rather than assumed.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be reliably underwritten because no dependable GDV, refurbishment budget, lease information or finance costs are supplied. The property is occupied by Holland & Barrett and New Look, but the evidence does not confirm rent, lease length or refinance valuation. Any refinance case requires legal and valuation due diligence first.

Buy-to-Let Analysis

This is a commercial retail investment rather than residential BTL. The auctioneer estimates ERV at £40,000 per annum, equivalent to approximately £3,333.33 per month and a headline 14.81% yield against the £270,000 guide. This is an estimate, not confirmed passing rent, and lease terms, rent review dates, covenant details and landlord costs have not been supplied. The yield after VAT, acquisition costs, operating costs and voids cannot be established.

Flip Analysis

A flip appraisal cannot be completed because a reliable resale GDV, refurbishment allowance, selling costs and VAT treatment are unavailable. The supplied comparables are too varied to support a defensible resale value for this specific parade.

Investor Risks & Due Diligence

• The stated £40,000 per annum is an auctioneer estimate rather than confirmed passing rent.

• Lease terms, rent review provisions, expiry dates, break rights and tenant covenant information are not supplied.

• VAT is applicable, but the amount and recoverability are not stated.

• Buyer, administration and other seller or third-party charges are unspecified.

• No condition, EPC, heating or building-services information is supplied.

• The available sold comparables vary materially in size and may not represent this property adequately.

• Potential vacancy, tenant default or reletting risk cannot be assessed from the supplied evidence.

Recommendation

Consider as a commercial income investment only after reviewing the occupational leases, tenant covenants, rent schedule, VAT position, title and building condition. Do not bid solely on the quoted ERV or headline guide-price yield.

Strategy Rating

Analysis Confidence

The address, tenure, accommodation, named occupiers, guide price, selected sales evidence and auctioneer ERV are supplied, but lease terms, passing rent, condition, EPC, costs, VAT detail and sufficiently comparable valuation evidence are missing.