Front of the properyt
Latest Valuation
£140,000
ROCE
30%
Location
Blackpool

21% BMV Instant Cashflow Mixed Use Investment

Hands-Off Managing in Place - Instant Cashflow
Guide Price
£110,000

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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

The Plan

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.

The Location

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 FY1

£

Sold comparables - Within 1/4 mile - Sold in last 1 year - Flat

Jun 2019 £94K Flat 7, Argyll Court, Argyll Road, Blackpool, Blackpool FY2 9UF
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=68874334&sale=56359103&country=england

Sep 2019 £88K Flat 8, Argyll Court, Argyll Road, Blackpool, Blackpool FY2 9UF
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=70989928&sale=10751764&country=england

Similar currently available to let;

£500 PCM Yorkshire Street, Blackpool
https://www.rightmove.co.uk/property-to-rent/property-73685482.html

£500 PCM King Street, Blackpool
https://www.rightmove.co.uk/property-to-rent/property-74091754.html

£500 PCM Saville Road, Blackpool
https://www.rightmove.co.uk/property-to-rent/property-86302295.html

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