Russell Hill Road, Purley, Croydon, CR8 2LD

Description

Freehold Commercial Investment Property with Driveway and Large Rear Garden Producing Approximately £74,750 per annum exclusive. A unique opportunity to purchase this two-storey detached commercial investment property with future development potential, subject to gaining any necessary planning consent. The property is configured into various rooms comprising classrooms, managers office, w/c facilities, kitchen and conservatory. The property also benefits from a large rear garden and sizeable front driveway. The Auctioneers have not been able to inspect the property, therefore, are unable to confirm the condition or layout of Russell Hill Road, Purley.

Accommodation

Ground Floor: 164.76 sqm / 1,773 sq ft. First Floor: 98.47 sqm / 1,060 sq ft. Total approximate floor area: 263.23 sqm / 2,833 sq ft. Various rooms comprising classrooms, managers office, w/c facilities, kitchen and conservatory.

Location

Situated on the eastern side of Russell Hill Road, within the London Borough of Croydon. Purley town centre and Purley Railway Station are approximately 500 metres south, with Purley town providing various amenities including national and local retailers and restaurateurs.

Tenure / Property Information

Investment Analysis

The property is let on a 15-year FRI lease from 1 November 2024 at approximately £74,750 per annum. At the £1,150,000 guide, this equates to an indicative gross yield of 6.50% before costs. Same-road sold comparables are available, but they relate to different properties and mainly 2019–2020 transactions, so they do not support a reliable GDV or current market value. The auctioneer could not inspect the property, and condition and layout remain unconfirmed.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led commercial investment after satisfactory inspection, lease, tenant covenant, title, planning and legal-pack due diligence. Do not underwrite future development without consent and valuation evidence.

Works Required

No refurbishment scope can be supported because the property was not inspected. Priorities are inspection, verification of the layout and condition, review of the FRI lease and legal pack, and assessment of any planning implications for future development.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR cannot be reliably modelled because there is no supported GDV, refurbishment budget or refinance valuation. The investment case currently depends on the existing lease income rather than a refurbishment-led refinance.

Buy-to-Let Analysis

As a commercial investment, the stated approximately £74,750 annual rent produces a 6.50% gross yield on the £1,150,000 guide, before acquisition, finance, management, maintenance and other costs. The FRI lease provides contractual income evidence, but passing rent, tenant covenant and lease obligations require legal verification.

Flip Analysis

A flip surplus cannot be calculated. The property was not inspected, refurbishment costs are unknown, and the available comparables are older and relate to different properties. Future development is only described as potential and is subject to planning consent.

Investor Risks & Due Diligence

• Property condition and layout are unconfirmed because the auctioneer could not inspect it.

• The stated rent is approximate and tenant covenant and lease details require verification.

• The 1% administration fee applies, with a minimum of £1,750, and further disbursements or other charges may be payable.

• Future development is subject to obtaining necessary planning consent.

• Available sold comparables are different properties and mostly from 2019–2020.

• No refurbishment or lifecycle-cost allowance can be established from the evidence.

Recommendation

Consider only as an income-led commercial investment after satisfactory inspection, lease, tenant covenant, title, planning and legal-pack due diligence. Do not underwrite future development without consent and valuation evidence.

Strategy Rating

Analysis Confidence

The passing rent, lease structure, guide price, tenure and floor area are supplied, but there is no inspection, current comparable valuation, tenant covenant evidence, refurbishment budget or supported GDV.