86 Atlantic Road, London

Description

Comprises a ground floor beauticians let until 2028 with no breaks. Uncapped annual RPI-linked rent reviews. Forms part of an established local parade, a short distance from Brixton Village Market. Located 450m from Brixton Underground Station in a densely populated suburb. Gross initial yield: 9.57%. VAT is applicable. Six-week completion available.

Accommodation

Ground floor beauticians. The property forms part of a larger building, the remainder of which is not included in the sale.

Location

Brixton is a densely populated suburb of South West London, approximately 2 miles south of Central London and 4 miles north of Streatham. The property is situated on the west side of Atlantic Road, close to its junction with Kellett Road. Brixton Underground Station on the Victoria Line is approximately 450m away. Brixton Village Market is a short distance away.

Tenure / Property Information

Investment Analysis

The supplied residential comparables are not sufficiently comparable to this leasehold commercial shop investment and do not support a commercial GDV. The stated gross initial yield is 9.57% at the £180,000 guide, implying approximately £17,226 annual rent, or £1,435.50 pcm, but the passing rent is not separately provided. The investment is let to a beautician until 2028 with no break and has uncapped annual RPI-linked reviews. VAT applies to the lot, while the treatment and amount payable are not specified.

Investment Snapshot

Strategy Recommendation

Consider only as a commercial income hold, subject to verifying the rent, tenant covenant, lease terms, VAT and all special-condition charges. Do not bid on the residential comparable evidence alone.

Works Required

No refurbishment works are evidenced. Confirm the lease, tenant obligations, rent schedule, RPI review mechanism, VAT treatment and any repair liabilities before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR cannot be reliably assessed because no commercial GDV, refurbishment budget, finance terms or refinance valuation evidence is supplied. The long lease at a peppercorn ground rent may support investmentability, but refinance proceeds cannot be calculated from the available evidence.

Buy-to-Let Analysis

This is a commercial income investment rather than residential BTL. At the guide, the stated gross initial yield is 9.57%, implying approximately £17,226 per annum. The calculation is indicative only because the actual passing rent, tenant covenant, operating costs, VAT and other acquisition charges are not supplied. The 2028 expiry and uncapped RPI reviews require lease and affordability due diligence.

Flip Analysis

A flip analysis is unsupported. The available sold comparables are residential properties and do not establish a resale value for this commercial leasehold investment. No commercial GDV, selling costs or vacant-possession assumptions are provided.

Investor Risks & Due Diligence

• VAT applies to the lot, but the amount and treatment are not specified.

• Additional seller or third-party charges may apply and are not quantified.

• The beautician tenancy is stated to run only until 2028, with no break, so post-2028 income is not evidenced.

• The annual rent reviews are uncapped RPI-linked, creating potential affordability and re-letting risk.

• No sufficiently specific external rental comparable or commercial sale comparable is supplied.

• The property forms part of a larger building and the remainder is excluded from the sale, requiring careful review of rights, repairs and shared liabilities.

Recommendation

Consider only as a commercial income hold, subject to verifying the rent, tenant covenant, lease terms, VAT and all special-condition charges. Do not bid on the residential comparable evidence alone.

Strategy Rating

Analysis Confidence

The guide, tenure, occupancy, lease structure and stated yield are supplied, but the actual rent, commercial comparables, GDV, VAT amount, full acquisition costs and property condition are not.