Lynton House, Castle Street, Axminster EX13 5NP

Description

The property comprises a high yielding retail investment occupying a prominent central pitch. Arranged as a retail unit across ground floor and basement, with four residential units, the Grade II listed property is fully let and producing £11,125 per annum.

Accommodation

Ground floor and basement retail unit plus four residential units.

Location

Prominent central pitch in the centre of Axminster with frontage to West Street and Castle Street. These streets comprise the principal retail amenity within Axminster and are characterised by a mix of local and boutique occupiers.

Tenure / Property Information

Investment Analysis

The property is a freehold mixed retail/residential investment, but the freehold income identified is limited to £11,125 per annum from the retail lease. The four residential units have been sold on individual 999-year leases at peppercorn ground rents and therefore do not provide stated rental income to the freeholder. The supplied sold comparables are mainly residential or unidentified property types and do not provide sufficiently specific evidence for a reliable GDV or market value of this asset. At the £80,000 guide, the stated retail rent represents a gross yield of approximately 13.91%, before costs, VAT, fees, voids or other ownership expenses.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led commercial freehold investment, subject to verification of the retail lease, renewal terms, title structure, listed-building obligations, fees and VAT. It is not suitable for a supported BRRR or flip assessment on the available evidence.

Works Required

No refurbishment works are evidenced. Obtain a full survey, review the Grade II listed status and confirm whether any repair, maintenance or consent requirements exist before undertaking alterations.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot be completed reliably because no supported GDV, refurbishment budget or relevant valuation evidence is available. The guide-price purchase plus no evidenced works is £80,000 before unknown buyer fees, VAT and seller charges. A 75% refinance figure cannot be calculated without a defensible GDV.

Buy-to-Let Analysis

The retail unit is fully let at £11,125 per annum, equivalent to £927.08 pcm and a 13.91% gross yield on the £80,000 guide, excluding all fees, VAT and operating costs. The lease expires in June 2027. The tenant has expressed willingness to agree a new five-year lease at the same rent, but this is not a binding renewal. No rent is stated for the four residential units because they are held on 999-year leases at peppercorn ground rents.

Flip Analysis

A flip surplus cannot be calculated because no sufficiently comparable mixed retail/residential GDV or supported selling-cost allowance is provided. The supplied comparables are not sufficiently specific to establish a resale value for this property.

Investor Risks & Due Diligence

• The retail lease expires in June 2027 and the proposed five-year renewal at the same rent is not binding.

• The four residential units are sold on long leases at peppercorn ground rents and provide no stated residential rental income to the freeholder.

• The property is Grade II listed, potentially restricting alterations and creating consent or maintenance considerations.

• Buyer fees, VAT and possible seller charges are not quantified and may increase total acquisition cost.

• Condition, repair liabilities, EPC, insurance and other operating costs are not supplied.

• The available sold comparables are not sufficiently specific to establish a reliable market value for this mixed retail/residential investment.

Recommendation

Consider only as an income-led commercial freehold investment, subject to verification of the retail lease, renewal terms, title structure, listed-building obligations, fees and VAT. It is not suitable for a supported BRRR or flip assessment on the available evidence.

Strategy Rating

Analysis Confidence

The passing retail rent, occupancy, tenure and lease structure are supplied, but there is no reliable GDV evidence, refurbishment information, external rental evidence, buyer fee, VAT position, condition report or confirmed lease renewal.