Unit 1, 2-6 Fore Street, Chard, Somerset, TA20 1PH

Description

A Mid Terrace Commercial Building Arranged to Provide a Ground Floor Retail Unit and First Floor Ancillary Space Let to Superdrug Producing £36,000 Per Annum. The property comprises a mid terrace commercial building arranged to provide a ground floor retail unit and first floor ancillary space.

Accommodation

Ground Floor: Retail Unit. First Floor: Ancillary Space. Total G.I.A Approx 8,018 sq ft.

Location

The property is situated in Chard city centre close to local shops and amenities. Nearby multiples include Sainsbury's and Boots. The open spaces of Snowdon Park are within easy reach. Transport links are provided by Crewkerne rail station and the A358.

Tenure / Property Information

Investment Analysis

The property is a freehold high-street retail investment let to Superdrug at a stated passing rent of £36,000 per annum until 28 September 2028. At the £300,000 guide, the gross rent yield is 12.00%. The supplied sold comparables are different property types and do not provide a reliable direct valuation benchmark. A market value/GDV cannot be estimated without an applicable commercial investment yield, lease terms, covenant analysis and further valuation evidence.

Investment Snapshot

Strategy Recommendation

Consider as a commercial income hold only if the legal pack confirms satisfactory lease terms, tenant obligations and renewal prospects. Do not rely on a refurbishment or flip uplift, and obtain a commercial valuation before bidding.

Works Required

No refurbishment works are identified in the supplied description. Allow for ordinary landlord, compliance or repair obligations only after reviewing the lease, legal pack and survey; no numerical works allowance is supported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be reliably underwritten because no GDV, commercial valuation yield, refurbishment budget or refinance terms are supplied. The property is already income-producing, and its suitability for refinance depends on the lender's valuation, lease length, tenant covenant and post-2028 income position.

Buy-to-Let Analysis

This is a commercial income investment rather than a residential BTL. The stated passing rent is £36,000 per annum, equivalent to £3,000 pcm, producing a 12.00% gross yield on the £300,000 guide. The yield is not a net yield because buyer costs, disbursements, management, insurance, repairs, tax and finance costs are not supplied. The lease expires on 28 September 2028, so renewal and reletting risk are material.

Flip Analysis

A flip or resale surplus cannot be calculated. No supported GDV, selling allowance or project works budget is available, and the supplied comparables are not sufficiently comparable to this tenanted retail asset.

Investor Risks & Due Diligence

• The lease expires on 28 September 2028, with no renewal terms or rent review provisions supplied.

• Reletting or renewal terms after expiry are uncertain, which may affect income and value.

• The gross yield excludes unknown buyer, legal, disbursement, management, insurance, repair, tax and finance costs.

• Additional disbursements and seller-related costs may be payable under the legal pack.

• No commercial investment yield or directly comparable completed sale has been supplied, so market value cannot be established.

• No condition, EPC, heating or compliance information is supplied for the building.

Recommendation

Consider as a commercial income hold only if the legal pack confirms satisfactory lease terms, tenant obligations and renewal prospects. Do not rely on a refurbishment or flip uplift, and obtain a commercial valuation before bidding.

Strategy Rating

Analysis Confidence

Passing rent, tenure, occupancy, lease expiry, guide price and floor area are supplied, but no commercial valuation yield, EPC, lease detail, operating costs, condition survey, buyer premium or complete purchase-cost information is available.