Freehold & Ground Rents, St. Lukes Hall, William Street Bedminster, Bristol, BS3 4BW

Description

The lot comprises the freehold of St Luke Hall, which has been previously converted into 15 apartments.

Accommodation

St Luke Hall, previously converted into 15 apartments, plus an energy centre.

Location

Bedminster is a lively and popular area in the south of Bristol, with transport links to Bristol city centre, its own train station providing services to Bristol Temple Meads, North Street shops, cafes, restaurants and market, nearby green spaces including Victoria Park, and proximity to Bristol city centre and the Harbourside district.

Tenure / Property Information

Investment Analysis

The lot is a freehold ground-rent investment comprising 15 residential leases and one energy-centre lease. Contractual income is £5,938.15 per annum: 15 × £395.81 plus £1.00. No capitalisation rate, valuation evidence or sufficiently specific rental comparable is supplied, so GDV and market value cannot be reliably estimated. The 2021 sale of the same property at £37,750 provides historic evidence only; the £50,000 guide is the current auction pricing reference, not a formal valuation.

Investment Snapshot

Strategy Recommendation

Consider only as a long-term ground-rent income investment, subject to legal and valuation review of all 16 leases, the energy-centre lease and the sustainability of the ground-rent income. Do not underwrite on residential rental assumptions or a flip strategy.

Works Required

No refurbishment works are identified in the supplied evidence. The investment should be reviewed for lease documentation, ground-rent collection, management obligations and the energy-centre lease, but no cost allowance is supported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR refinance analysis cannot be completed because no GDV, capitalisation rate, lender valuation basis or finance costs are supplied. The guide plus stated buyer premium gives an initial acquisition cost of £51,800 before any other costs. The income profile may support an investment valuation, but this requires professional assessment of the leases and ground-rent terms.

Buy-to-Let Analysis

This is not a conventional buy-to-let of an individual apartment. The supported income is contractual ground rent of £5,938.15 per annum, equivalent to approximately £494.85 per month across the freehold, rather than residential rent. On the £50,000 guide, the gross income yield is approximately 11.88%; including the £1,800 buyer premium, it is approximately 11.46%. Net yield cannot be established because management, collection, legal, insurance, maintenance and other costs are not supplied.

Flip Analysis

A conventional refurbishment flip is not supported by the evidence. The asset is a freehold ground-rent investment rather than an identified vacant residential unit, no works or resale GDV are supplied, and the historic same-property sale at £37,750 does not establish a current resale value. Flip surplus is therefore unquantified.

Investor Risks & Due Diligence

• No current market valuation or capitalisation rate is supplied.

• The £5,938.15 annual income is ground rent, not residential rent, and net income cannot be established.

• The investment comprises 15 residential leases plus an energy-centre lease, requiring legal review of all lease terms and obligations.

• The historic comparable is the same property sold in 2021 and may not represent current value.

• Additional acquisition, management, legal, insurance and maintenance costs are not supplied.

• The £50,000 guide is an auction guide and may not represent market value or the eventual purchase price.

Recommendation

Consider only as a long-term ground-rent income investment, subject to legal and valuation review of all 16 leases, the energy-centre lease and the sustainability of the ground-rent income. Do not underwrite on residential rental assumptions or a flip strategy.

Strategy Rating

Analysis Confidence

The lease structure, contractual ground rents, guide and buyer premium are clear, but there is no current valuation evidence, capitalisation yield, cost schedule, residential rent evidence or finance information.