Latest Valuation
£205,000
ROCE
%
Location

15% BMV – Mixed Use Property in Blackpool

Commercial Units and Flats on 1 Title
Guide Price
£175,000

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Key Features

  • Income Producing Cashflow From Day 1
  • Hands-Off
  • No Works Required
  • 22% ROCE
  • Free Legals
  • 15% BMV

The Property

Income-producing investment opportunity, consisting of 1 x commercial unit and 3 flats on one title. It has been sourced off-market from a vendor that has secured the site on an option.

OFF- MARKET
HANDS-OFF
MANAGING AGENTS IN PLACE
MIXED USE INVESTMENT

The vendor is looking for a fast sale ideally to complete within 8 weeks.
This property consists of 2 x 1 bed apartments, 1 x 2 bed apartment and 1 x commercial unit on 1 freehold title
Already income producing.
There is good demand for apartments for rent in this area.
Vendor looking for 8 week completion, 1 week to exchange, 7 weeks to complete.

Shop tenants pay 50% buildings insurance

Assumed sizes of each flat as taken from EPC reports:
Flat 1 36 sqm
Flat 2 35 sqm
Flat 3 81 sqm

We have great relationships with the local estate, letting and commercial agents in Blackpool.

A commercial tenant has been found for the shop which is currently being renovated. The commercial tenant has already paid legal costs and is about to sign a lease and the refurb works have already started.
Two one beds are tenanted. One tenant is working and the other is DSS. Both these tenants are under AST's and both have been there for a couple of months
The two-bed is currently vacant but actively being marketed by local agents so by the time you complete all the units should be fully tenanted.

Tenure Freehold

Commercial Unit

Flat 1
Lounge / Kitchen, Bedroom, Bathroom

Flat 2
Lounge / Kitchen, Bedroom, Bathroom

Flat 3
Lounge, Kitchen Bedroom 1, Bedroom 2 Bathroom

Rear yard

Services
Connected to main sewage and water main

Rights of Access
Access to the front of the property and rear

Planning Information

N/A

The Plan

The Financials:

GDV: £205,000

Purchase Price: £175,000
SDLT £500
Sourcing Fee £3,000

Refurbishment/Project Management: £0
Purchase Legal Costs £0

Total Cost / Cash Buyer £178,500

FINANCED BUYER
WE HAVE LENDERS IN PLACE READY TO FINANCE
PLEASE NOTE THE FINAL FINANCE OFFERED WILL BE BASED ON YOUR PERSONAL CIRCUMSTANCES
THE FIGURES PROVIDED ARE FOR TYPICAL LENDING ON THIS TYPE OF PROPERTY

30% Deposit. Loan £122,500. Deposit £52,500
5% Interest. Interest-only. Annual £6,125. Monthly £510

Total cash-in;
Deposit £52,500
SDLT £500
Sourcing Fee £3,000

Money Cash In
Total: £57,000

Cashflow
1 x Commercial Unit £5,500 per annum
2 x 1 Bedroom Flats @ £85 PW £8,840 per annum
1 x 2 Bedroom Flats @ £115 PW £5,980 per annum

Total Gross Income £20,320 per annum

Less:
Management Cost 10% (incl. VAT) (Flats only) £1,482 per annum
Mortgage £6,125 pa

Circa Net Cashflow £12,713 pa
Circa Net Cashflow £1,059 pcm

It’s your choice to retain an additional 10% of commercial rent set aside to cover any voids or maintenance that may be required

Yield

11% Gross Cash Buyer
Based on invested £179,500 with gross income £20,320 pa
7% Net Cash Buyer
Based on invested £179,500 with net income £12,713 pa

36% Gross Finance Buyer
Based on invested £57,000 with gross income £20,320 pa
22% Net Finance Buyer
Based on invested £57,000 with net income £12,713 pa

22% ROCE

GDV: £205,000
Desktop survey will be provided
1 x Commercial £55,000 (based on 10 X Annual Rental Income)
2 x 1 Beds @ £45,000 = £90,000
1 x 2 Bed = £60,000

STAMP DUTY £500
Commercial Rates

PURCHASE LEGALS £0
The vendor will pay for the buyers to purchase legal fees in turn for the buyer using a solicitor that is recommended. The vendor is willing to do this for fast exchange and completion as he knows the solicitors can achieve this

SOURCING FEE £3,000
Payable at Exchange through solicitors i.e. after RICS survey
Fully refundable if legal issues with Title discovered that were previously undisclosed

Process:
- NON- REFUNDABLE deposit to reserve: £5,000, which is deducted from the purchase price
- As this is NON-REFUNDABLE please ensure you've done your research prior to paying this. It's your responsibility to make sure you're happy before moving ahead. This deal is an auction style deal where there is 1 week to exchange (the vendor will agree 5%, but in event of buyer default 10% is due and payable) from paying the deposit and 7 weeks completion. Therefore before paying the deposit make sure you've carried out your own due diligence.

Sold As Seen
The development opportunity is sold as seen and all numbers provided are a guide only based on professional opinions and should not be solely relied upon. You must do your own due diligence and seek professional advice if necessary. NUMBERS ARE ONLY A GUIDE YOU MUST DO YOUR OWN DUE DILIGENCE

FINANCED BUYER. WE HAVE LENDERS IN PLACE READY TO FINANCE
PLEASE NOTE THE FINAL FINANCE OFFERED WILL BE BASED ON YOUR PERSONAL CIRCUMSTANCES
THE FIGURES PROVIDED ARE FOR TYPICAL LENDING ON THIS TYPE OF PROPERTY

One investor who has been buying for a few years now numerous BMV commercial to residential conversion projects has used the recommended build team, project management and the end to end services and was pleased to see figures, time-frames, and GDVs holding true. His quote: "Working with the teams was easy, trustworthy and reliable. Their teams are well versed in dealing with projects and investors alike. I don't live locally so having hands-on support as and when needed, was critical to seeing our projects through. I wholly recommend working with them and see massive value in their turnkey service." Tiruven, UK Property Investor.

The Location

The commercial premises are located within a mixed commercial and residential location, within North Shore, Blackpool, that serves the local community and the dense surrounding residential areas. The position benefits from a wealth of passing vehicle and pedestrian trade. Ease of commuting is available onto the Promenade, into Blackpool town centre and along the coastline towards Bispham and Thornton Cleveleys.

Blackpool confirms £100m town centre regeneration plans

Blackpool Council has confirmed the details of its £100m project to regenerate the seaside destination’s town centre.

In a statement, the local authority said it is committed to ‘focusing large-scale investment’ in a series of major schemes that will ‘breathe new life’ into the town centre over the next three years.

The projects include a £26m investment in a new, state-of-the-art conference centre next to the Winter Gardens which will open for business in August 2019 attracting visitors throughout the year.

There will also be a new £23m tram extension from the Promenade to Blackpool North Station, creating a link to the newly-electrified rail line and a new 144-bedroom, 4-star Holiday Inn and restaurant that will be sited at the North Station transport interchange on the site of the old Wilko building.

Also, a £7m Quality Corridors programme will see the refurbishment of Deansgate, Edward Street, Topping Street, Cookson Street, and Dickson Road.

The block is in an ideal location for Blackpool tourism located on the promenade with a sea view and short walk from all the major attractions. There is a large car park a 2-minute walk from the property for ample parking for Guests.

Regeneration and Investment Into Blackpool

Blackpool is a perfect location to invest in both residential and commercial property. It is an unsaturated improving market filled with opportunity for investment and a great return on that investment. The town has a population of circa 150,000 and the demand for rental residential property is very high. There are hundreds of millions of pounds in investment presently being made in Blackpool with regeneration schemes throughout the town, breathing new life into areas with the creation of new leisure sites, hotels, and restaurants. Large hotel chains such as Premier Inn, and Hilton is building a brand new state of the art hotels on the sea-fronted promenade. Hilton, in particular, has invested £30 million in their new 130 bedroom hotel, which is set to transform the street scene on the south shore coastline.

Another massive boost to the Blackpool economy is the fracking site that commenced operations in the summer of 2017 and which has brought over 15,000 jobs to Blackpool and Lancashire. There has never been a better time than now to invest in Blackpool.

Lytham Festival is held every summer on Lytham green, attracting thousands of tourists. Night prices will be up on these dates

Royal Lytham golf course is situated within close proximity to the property and there are regular professional golf championships played on this course which attracts golf fans from around the world.

BAE Systems Warton is a corporate employer just outside of Lytham (5 min car drive) this is a corporate outfit we will approach for long term stays.

Blackpool Pleasure beach attracts thousands to the area every single year. Perfect for Families

Sandcastle waterpark another great attraction for families

• Hampton by Hilton to open in Blackpool 2018 - Part of £31Million regeneration project
• Leisure Giant Whitbread proposed £10 Million Premier Inn Hotel Approved
• Cuadrilla Natural gas from UK shale creating thousands of jobs
• Persimmon Homes - Coastal Dunes Development
• Kensington's
• Redwood Point Blackpool landmark development
• £300m Chariots of the Gods Development in the centre of Blackpool
• Blackpool Central State of the Art Development

9-year Development which will be implemented in 3 phases starting in 2020/

Average estimated value for a house in FY2

£

Rightmove sold comparables;

FY2 Postcode. Within ¼ mile. Sold in last 1 year. Flat. Sorted by address.

1 Bed
£52,000 Flat 5, Forrest Court, Pelham Avenue, Blackpool, Blackpool FY3 7HF
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=29377834&sale=11035129&country=england

£56,000 173a Red Bank Road, Bispham, Blackpool, Blackpool FY2 9EA
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=68194912&sale=56359028&country=england

£51,500 5 The Spinney, Thornton-cleveleys, Lancashire FY5 3AS
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=79826426&sale=56359610&country=england

£42,000 48 Washington Court, Blackpool, Blackpool FY2 0XJ
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=80955932&sale=90364995&country=england

2 Bed
£75,000 1 Parbold Close, Blackpool, Blackpool FY3 7SB
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=85257188&sale=56639804&country=england

£80,000 Flat 5, Hesketh Court, Queens Promenade, Bispham, Blackpool, Blackpool FY2 9JJ
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=71984009&sale=10197616&country=england

£62,500 58d Red Bank Road, Bispham, Blackpool, Blackpool FY2 9HR
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=58627845&sale=56639699&country=england

£72,000 Flat C, 21 Swarbrick Close, Blackpool, Blackpool FY1 3RZ
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=39537265&sale=9205147&country=england

£75,000 45 Tennyson Drive, Bispham, Blackpool, Blackpool FY2 0GH
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=60366607&sale=9689038&country=england

£60,000 Flat 1, Warbreck Court, Warbreck Hill Road, Blackpool, Blackpool FY2 9SR
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=64829926&sale=56359085&country=england

£71,000 Flat 31, Wimbledon Court, Wimbledon Avenue, Thornton-cleveleys, Blackpool FY5 1BE
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=83675486&sale=90365490&country=england

Holmfield Road has 134 houses and flats on it

Local Amenities

Layton (Lancs) 0.9 miles
Blackpool North 1.2 miles
Langdale Free School 0.1 miles
Holy Family Catholic Primary School 0.5 miles

Nearest underground/metro/tram to FY2 9RS
Cabin (Blackpool Tramway) (Knowle Avenue) North Shore 153m
Cliffs Hotel (Blackpool Tramway) (King Edward Avenue) North Shore 295m
Lowther Avenue (Blackpool Tramway) (Lowther Avenue) North Shore 441m
Gynn Square (Blackpool Tramway) (Queens Promenade) Claremont 522m
Cavendish Road (Blackpool Tramway) (Cavendish Road) North Shore 936m