803-805 Warwick Road, Tyseley, Birmingham

Description

The property comprises a high yielding retail investment opportunity occupying a prominent roadside pitch. Arranged as a triple fronted retail unit, the property is fully let to a private individual t/a Direct Home Furnishers and producing a combined £19,600 per annum.

Accommodation

Triple fronted retail unit comprising units 809, 811 and 815 Warwick Road.

Location

Prominent frontage to Warwick Road (A41), a principal arterial route connecting Tyseley to Central Birmingham. Tyseley station is immediately opposite the property.

Tenure / Property Information

Investment Analysis

The property is offered at a £150,000 guide against stated income of £19,600 per annum, equivalent to a gross yield of approximately 13.07% on the guide price. This is attractive for an income investment, but no capital valuation or investment comparable has been supplied. The sold comparables are leasehold flats/maisonettes and are not sufficiently comparable to this retail investment. Buyer fees, seller charges and any applicable VAT are not quantified, so the all-in acquisition cost cannot be established.

Investment Snapshot

Strategy Recommendation

Income hold/BTL, subject to confirming the lease structure, tenant covenant, rent review provisions, title and all auction charges before bidding. Do not underwrite a refurbishment, BRRR or flip without independent valuation evidence.

Works Required

No specific repair, refurbishment or redevelopment works are evidenced. No refurbishment allowance has therefore been applied. Legal, lease and tenant due diligence should be completed before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot be reliably completed because no supported GDV, refurbishment budget or refinance valuation is provided. The opportunity is primarily an income-producing retail investment rather than an evidenced refurbishment-led refinance project. The 999-year lease is stated to be at a peppercorn rent, while unit 811 has approximately 96 years unexpired and units 809 and 815 have leases expiring on 28 September 2032; the legal structure requires careful review.

Buy-to-Let Analysis

The stated combined income is £19,600 per annum, or approximately £1,633.33 per month. Against the £150,000 guide, this produces a gross yield of approximately 13.07%. No sufficiently specific external rental evidence, operating costs, financing costs or quantified acquisition fees are supplied, so net yield and cashflow cannot be established. The investment is fully let, but the tenant is a private individual trading as Direct Home Furnishers, so covenant strength requires verification.

Flip Analysis

A flip surplus cannot be calculated because no supported retail GDV, selling costs or refurbishment costs are available. The property is fully let and marketed as an income investment, making a hold strategy more directly supported by the evidence than a resale strategy.

Investor Risks & Due Diligence

• The tenant is a private individual trading as Direct Home Furnishers, so covenant and financial strength are not evidenced.

• Units 809 and 815 are stated to be let until 28 September 2032; future renewal and rent-review outcomes are uncertain.

• Unit 811 is described as being held on a long leasehold basis with approximately 96 years unexpired, requiring title and lease-structure verification.

• Buyer fees, seller charges and any VAT applicable to the sale are not quantified, so the all-in purchase cost is unknown.

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

• The supplied sold comparables are flats/maisonettes and do not establish a reliable value for this retail investment.

Recommendation

Income hold/BTL, subject to confirming the lease structure, tenant covenant, rent review provisions, title and all auction charges before bidding. Do not underwrite a refurbishment, BRRR or flip without independent valuation evidence.

Strategy Rating

Analysis Confidence

The stated rent, guide price, occupancy and lease information support a guide-price gross-yield calculation, but there is no comparable retail valuation, external rental evidence, condition information, quantified buyer fees, EPC data or supported GDV/refurbishment evidence.