Key Features
- Fully Let Instant Cashflow Income Day 1
- 30% ROCE
- 21% BMV
- Hands-Off
- Stamp Duty & Purchase Legals £0
- Fully Tenanted
The Property
Off-Market, Hands-off managing agents in place
Instant cashflow
Income day 1
Mixed use investment
In Blackpool town centre, this unit consists of 1 x 2-bed apartments and a large commercial unit. Both units are fully let.
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
Shop value – 10 x annual rent = £67,600.
Flat value - £67,400 - £72,400 (based on agents valuation of £135-£140k).
Purchase price £110,000
Comprises an end-on semi-detached structure built of traditional construction; of brick with a pitched tile roof, with brick-built chimney stacks. The external joinery to the first floor has been replaced in white UPVC and the ground floor has timber window frames.
A separately accessed two-bedroom, self-contained flat with separate services and gas central heating; currently rented out on a company let to north west leaving care services ltd. The rent is £520 per month. The current rental agreement expires february 2020 but a new contract is currently being drawing up for a further 6 months. Moved in - august 2019
The ground floor is utilised as a Polish supermarket and off-licence on a1 use; currently, let at £6,760 per annum payable monthly on a five-year lease with a personal guarantee from 11th November 2017 ending November 2022. The deposit paid was £563. The rent review is every 3 years. The break date was November 2019, which wasn’t taken up. The premises overall, appear to be in a satisfactory condition, occupying a mixed district of residential; commercial, small guest houses and self-contained flats. Although the property is within a seasonally located position, there is a good passing trade with on-road parking directly in front of the premises. Shop tenants pay 50% towards the buildings insurance premium
The total rent roll amounts to circa £13,000 per annum
All under one freehold title
We have great relationships with the local estate, letting and commercial agents in Blackpool. As a result, if for any reason either the shop or flat tenants hand the notice to vacate, we can place with these agents who can market immediately. New tenants are lined up to move in usually the day after the existing tenants leave.
Sold as seen
The property 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 due diligence.
Exchange
Vendor will agree 5%, but in event of buyer default 10% is due and payable
The financials:
Purchase price fixed: £110,000
Market valuation: £135,000 - £140,000 provided by 2 local estate agents as drive-pasts (£135k may 2018 & £140k april 2019)
Also based on sold comparables
Stamp duty £0 (commercial sdlt)
Legals £0 (vendor paying purchase legals)
Refurb £0
Desktop rics survey supplied
Sourcing fee £5k
Total costs / cash buyer £115,000
Deposit to reserve: £5,000 (deductible from purchase)
Fully refundable if surveyor downs value or discovers structural problems previously undisclosed or undisclosed legal issues with title
Purchase legals
The vendor will pay for the buyers to purchase legal fees in turn for the buyer using a solicitor that is recommended
Sourcing fee
Payable at exchange through solicitors I.E. After RICS survey.
Fully refundable if legal issues with title discovered that were previously undisclosed
Financed buyer. We have lenders in place ready to finance
Please note the final finance offered will be based on your personal circumstances
Finance to purchase;
Mortgage 75% ltv at 4% interest only
Loan £82,500. Monthly £275 / £3,300
Deposit £27,500
Money in
£27,500 deposit
£5k sourcing fee
Total cash in £32,500
1 x 2 bed at £520 per month / £6,240 pa
1 x commercial unit at 563 per month / £6,760 pa
Total gross income: £13,000 pa
Less:
10% (incl vat) flat managing agents £1,300 per annum
Mortgage £3,300 per annum
Net cashflow £8,400 pa | £700 pcm
From the shop rent, the current owner takes 10% (£676 annually) as operating provision. Put aside in the owner's savings account to account for any maintenance or voids if any
Yields based on actually invested funds:
11% gross cash buyer
Based on invested £115,000 with gross income £13,000 per annum
10% net cash buyer
Based on invested £115,000 with net income £11,700 per annum
40% gross finance buyer
Based on invested £32,500 with gross income £13,000 per annum
26% net finance buyer
Based on invested £32,500 with net income £8,400 per annum
This means you get your invested monies back before 4 years and have instant equity as well as any potential capital appreciation over time
30% ROCE
Shop value – 10 x annual rent = £67,600. Flat value - £67,400 - £72,400 (based on agents valuation of £135-£140k)
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.
Planning Information
N/A