Denmark House 3B, High Street, Willingham, Cambridge, Cambridgeshire

Description

Denmark House is a set of two commercial offices on the High Street with parking and is currently partly let with a potential rental income of £26,000 pa. The ground floor offices are currently let to a care company with the first floor vacant. The offices may provide an opportunity for a change of use with the necessary planning permission to residential.

Accommodation

Ground floor: hall, Office 1, Office 2, Office 3, kitchen and a w.c. First floor: first floor landing, w.c., open plan office and a kitchen. Outside: car park and bike store.

Location

Willingham offers local facilities and schooling with more extensive facilities found at Bar Hill and Cambridge offering two stations with links into London Kings Cross.

Tenure / Property Information

Investment Analysis

The £220,000 guide equates to approximately 8.46 times the auctioneer's stated potential annual rent of £26,000, before fees and operating costs. The five sold comparables are residential freehold properties and do not provide a reliable valuation basis for these commercial offices. No floor area, commercial sales comparables, lease terms or formal valuation are supplied, so GDV and market value cannot be reliably estimated.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led commercial purchase subject to satisfactory legal and letting due diligence. Verify the ground-floor lease and rent, assess the vacant first floor, and investigate planning feasibility before relying on residential conversion or any uplift.

Works Required

No specific defects or required works are evidenced. Allow for inspection, compliance checks and any works identified through due diligence, but no refurbishment budget can be supported from the supplied information.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed reliably because no supported GDV, refurbishment budget, floor area, finance terms or refinance valuation is supplied. The existing part-let status and vacant first floor require verification before assuming rental stabilisation or refinance potential.

Buy-to-Let Analysis

At the guide price, the auctioneer's potential rent of £26,000 per annum implies an indicative gross yield of 11.82%. Including the stated £2,400 buyer premium and admin charge gives an indicative gross yield of 11.69% on £222,400. This is not a passing-rent analysis: the ground floor is let, but no rent, lease, term, tenant covenant or costs are supplied, and the first floor is vacant. Commercial operating costs, voids, maintenance and compliance costs are also unknown.

Flip Analysis

A flip appraisal cannot be supported. The supplied sold comparables are residential and materially different in type, while no commercial GDV, floor area, refurbishment cost or selling-cost allowance is available. The potential for residential change of use is expressly subject to obtaining the necessary planning permission and cannot be assumed.

Investor Risks & Due Diligence

• The £26,000 annual figure is an auctioneer estimate of potential rental income, not confirmed passing rent.

• The ground-floor lease terms, rent, expiry, break rights, repairing obligations and tenant covenant are not supplied.

• The first floor is vacant and its letting prospects and achievable rent are unverified.

• Any residential change of use requires planning permission and is not guaranteed.

• Commercial operating costs, maintenance, compliance expenditure and void risk are unknown.

• The shared rear car park may create access, allocation or rights-related due-diligence issues.

• Disbursements and other legal, search, seller-cost and transfer fees may be payable in addition to the stated charges.

• The current EPC rating is E and may affect future letting or compliance requirements.

Recommendation

Consider only as an income-led commercial purchase subject to satisfactory legal and letting due diligence. Verify the ground-floor lease and rent, assess the vacant first floor, and investigate planning feasibility before relying on residential conversion or any uplift.

Strategy Rating

Analysis Confidence

The guide, stated potential rent, tenure, occupancy and known buyer charges are supplied, but there is no floor area, rent schedule, lease information, commercial valuation evidence, condition budget, planning position or operating-cost data.