Ribchester House, Lancaster Road, Preston, Lancashire

Description

A vacant seven storey substantial office building offered with planning permission to convert to 36 flats. Part of the rooftop is let to telecommunication companies at a rent of £13,750 per annum.

Accommodation

The property comprises an office building arranged over ground and six upper floors. Ground floor: car parking space for 17 cars. First, second, third, fourth, fifth and sixth floors: office space and WCs. Total G.I.A. approximately 21,968 sq ft. Planning permissions include change of use from offices to 8 residential units and change of use from offices to residential use of up to 28 units.

Location

Situated on a residential road close to local shops and amenities. The open spaces of Avenham Park are within easy reach. Transport links are provided by Preston rail station.

Tenure / Property Information

Investment Analysis

The only directly relevant completed sales are for Ribchester House itself: £725,000 in March 2022 and £1,750,000 in October 2022. The substantial divergence means they do not support a reliable current valuation without transaction context. The £450,000+ guide is below both recorded prices, but conversion costs, lease obligations and fees are not supplied.

Investment Snapshot

Strategy Recommendation

Do not bid on yield or GDV assumptions. Consider only a planning-led conversion strategy after verifying the legal pack, planning permissions, conversion costs, unit values, rooftop leases and ground-rent liability.

Works Required

Assess and execute the permitted office-to-residential conversion, comprising permission for 8 units and separate permission for up to 28 units. Detailed construction, compliance, services and specification costs are not supplied. Preserve or assess the rooftop telecommunications income.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy may be possible if the planning permissions are deliverable and the conversion produces a financeable residential asset. However, refurbishment/conversion costs, completed residential values, rents, finance costs and exit terms are unavailable, so refinance proceeds and cash left in cannot be calculated.

Buy-to-Let Analysis

A conventional BTL yield cannot be established because no residential rent evidence is provided. The only stated income is £13,750 per annum from rooftop telecommunications lettings, while the property also carries £33,000 per annum ground rent; this is not sufficient evidence for a whole-building BTL assessment.

Flip Analysis

A conversion-led resale strategy cannot be underwritten from the supplied evidence. The two sales of the same building conflict materially, and no supported GDV, works budget or selling-cost allowance is available; therefore flip surplus is unquantifiable.

Investor Risks & Due Diligence

• £33,000 per annum ground rent materially affects viability.

• Approximately 106 years remain on the leasehold title.

• The two recorded 2022 sales of the same property differ substantially, limiting valuation confidence.

• Conversion costs and detailed building condition information are absent.

• The planning description refers to 8 units and up to 28 units under separate permissions; deliverability and final unit mix require verification.

• Additional search, seller, legal, transfer and disbursement costs may be payable.

• The rooftop telecommunications income and lease terms require verification.

Recommendation

Do not bid on yield or GDV assumptions. Consider only a planning-led conversion strategy after verifying the legal pack, planning permissions, conversion costs, unit values, rooftop leases and ground-rent liability.

Strategy Rating

Analysis Confidence

The asset description, lease terms, planning summary, guide and two same-property sales are available, but there is no detailed legal/planning evidence, cost plan, residential valuation or rental evidence.