Unit SU8, 5 Jubilee Way, Scunthorpe, North Lincolnshire, DN15 6RB

Description

A Ground Floor Commercial Unit with First Floor Ancillary Space Fully Let Producing £12,500 Per Annum. The property comprises a mid terrace building arranged to provide a ground floor commercial unit with first floor ancillary space.

Accommodation

Ground Floor: Retail Unit, approx. 114 sq m / 1,231 sq ft. First Floor: Ancillary Space, approx. 107 sq m / 1,154 sq ft. GIA 221 sq m / 2,385 sq ft.

Location

The property is situated on a mixed use road close to local shops and amenities. The open spaces of Central Park are within easy reach. Transport links are provided by Scunthorpe rail station.

Tenure / Property Information

Investment Analysis

The supplied sold comparables are all recorded as “Other”, vary materially from £68,400 to £950,000, and do not provide sufficient size, condition, income or valuation-basis detail to support a reliable GDV. The £85,000+ guide equates to approximately £35.64 per sq ft on the stated 2,385 sq ft GIA, before fees, but no formal market value can be established from the evidence. The property is let on a six-year lease, with contractual rent of £9,500 per annum in Year 1, £11,000 in Year 2 and £12,500 in Years 3–6.

Investment Snapshot

Strategy Recommendation

Consider as an income-hold commercial investment at or near the guide, subject to satisfactory legal-pack review, tenant covenant checks, confirmation of the rent schedule and assessment of all purchaser costs. Do not rely on a flip or refinance strategy without an independent valuation.

Works Required

No refurbishment works are evidenced. The analysis assumes no refurbishment allowance and excludes any unverified repairs, compliance works or alterations. Legal, physical and services inspections remain necessary.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot establish refinance proceeds because no evidence-supported GDV or commercial lending valuation is available. At the guide plus the known administration charge, the acquisition cost is £86,800 before any unknown disbursements or other special-condition costs. The investment case depends primarily on tenant covenant, lease enforceability and receipt of the stepped contractual rent.

Buy-to-Let Analysis

This is a commercial letting rather than residential BTL. Using the Year 1 contractual rent of £9,500 per annum, gross yield is approximately 11.18% on the £85,000 guide and 10.94% including the known £1,800 administration charge. Contractual rent rises to £11,000 in Year 2 and £12,500 in Years 3–6, equivalent to approximately 12.94% and 14.40% respectively on the stated total cost. These are gross figures before vacancy, repairs, insurance, management, finance, tax and other commercial ownership costs.

Flip Analysis

A flip or resale surplus cannot be calculated because no reliable GDV, selling allowance or refurbishment cost is supported. The available comparable evidence is too inconsistent and insufficiently detailed for a resale valuation.

Investor Risks & Due Diligence

• The property is leasehold, although approximately 978 years are stated to remain.

• The current contractual rent is £9,500 per annum in Year 1, despite the description referring to £12,500 per annum; the rent schedule should be verified in the legal documents.

• Tenant covenant, financial strength and lease compliance information are not supplied.

• Unknown disbursements and other charges may be payable under the legal pack and special conditions.

• No EPC, condition, services, insurance or maintenance information is supplied.

• The sold comparables are recorded as “Other” and vary materially, so they do not support a reliable GDV.

Recommendation

Consider as an income-hold commercial investment at or near the guide, subject to satisfactory legal-pack review, tenant covenant checks, confirmation of the rent schedule and assessment of all purchaser costs. Do not rely on a flip or refinance strategy without an independent valuation.

Strategy Rating

Analysis Confidence

The lease structure, rent steps, accommodation, tenure and known administration charge are supplied, but there is no EPC, detailed legal-pack cost schedule, tenant covenant information, condition report, external rental evidence or reliable valuation comparable.