74 Elm Park, Brixton, London, SW2 2UB

Description

The property comprises a high yielding mixed use investment opportunity occupying a popular high footfall pitch. Arranged as a ground floor retail unit with residential upper parts, the ground floor is let to a private individual trading as a barbers on a five year lease expiring 19.12.2029 and paying £12,000 per annum. The current passing rent is £11,100 per annum, but includes fixed annual increases of £300 up to £12,000, the vendor will therefore "top up" the rent to this level. The upper parts are sold off on a long leasehold expiring 23.09.2180 and paying a ground rent of £75 per annum. The property benefits from a frontage to Elm Park and forms part of the local retail amenity for the surrounding residential area. Elm Park directly connects to Brixton Hill, a principal arterial route.

Accommodation

Ground floor retail unit with residential upper parts

Location

Frontage to Elm Park in a popular high footfall location, forming part of the local retail amenity for the surrounding residential area. Elm Park directly connects to Brixton Hill, a principal arterial route.

Tenure / Property Information

Investment Analysis

The £110,000 guide equates to approximately 9.17 times the stated £12,075 annual income, producing a gross income yield of about 10.98% before costs. The income comprises the ground-floor retail rent, topped up by the vendor to £12,000 per annum, plus £75 per annum ground rent from the long leasehold upper parts. The supplied sold comparables are residential terraced freeholds and are not directly comparable to this mixed-use investment. No supported capital valuation or market yield evidence is provided, so GDV and scenario values cannot be established.

Investment Snapshot

Strategy Recommendation

Consider as an income-led freehold mixed-use investment at or below the guide, subject to satisfactory legal review of the commercial lease, vendor rent top-up and long leasehold documentation. Do not underwrite a BRRR or flip exit without an independent mixed-use valuation.

Works Required

No refurbishment works are identified in the supplied evidence. Allow for normal ownership, compliance and letting matters only after inspection and review of the legal documentation; no monetary works allowance is supported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR refinance assessment cannot be completed because no supported GDV, valuation yield, refurbishment budget, finance terms or comparable mixed-use evidence is supplied. The property does provide stated contracted income, but the upper parts are already sold off on a long leasehold and therefore are not available for refurbishment or separate refinance value creation.

Buy-to-Let Analysis

This is primarily a commercial income investment rather than a residential BTL. Based on the vendor top-up, the ground-floor rent is £12,000 per annum, with a further £75 per annum ground rent from the upper parts. Total stated income is £12,075 per annum, equivalent to approximately £1,006.25 pcm and a 10.98% gross yield on the £110,000 guide, before costs, finance and tax. The ground-floor lease expires on 19 December 2029. The supplied £2,600 pcm residential asking rent is not used because the upper parts are sold off on a long leasehold.

Flip Analysis

A flip surplus cannot be calculated. No supported mixed-use GDV, selling costs, refurbishment budget or evidence of vacant possession is provided. The supplied residential terraced sale comparables are not appropriate standalone evidence for this property.

Investor Risks & Due Diligence

• The ground-floor lease is stated to expire on 19 December 2029, creating future reletting or renewal exposure.

• The current passing rent is stated as £11,100 per annum and relies on the vendor topping it up to £12,000 per annum.

• The ground-floor tenant is a private individual trading as a barbers, so tenant covenant and business continuity should be reviewed.

• The upper parts are sold off on a long leasehold expiring in 2180, limiting the freeholder's control and leaving only £75 per annum ground rent.

• No EPC, condition, compliance, service-charge, insurance, legal-cost or auction-fee information is supplied.

• The residential sold comparables provided are not directly comparable to this mixed-use investment.

Recommendation

Consider as an income-led freehold mixed-use investment at or below the guide, subject to satisfactory legal review of the commercial lease, vendor rent top-up and long leasehold documentation. Do not underwrite a BRRR or flip exit without an independent mixed-use valuation.

Strategy Rating

Analysis Confidence

Income, tenure, lease dates and guide price are supplied, but there is no mixed-use valuation evidence, condition survey, EPC, buyer costs, finance information or refurbishment budget.