Summary
A prominent 4-storey corner building, comprising a Class E premises at ground floor level, that is currently operating as a Barber Shop, with a 7-bedroom, 7 en-suite HMO arranged from basement to second floor. The current income from the property as a whole is £73,560 per annum, with the retail unit let at a rent of £13,500 per annum, and the HMO element let at a rent of £5,005 per calendar month (£60,060 per annum).
Key Points
OFFERS INVITED IN THE REGION OF £700,000MIXED USE FREEHOLD INVESTMENT- RETAIL & 7 BED HMOINCOME OF £73,650 PER ANNUMDESIRABLE HMO LOCATION CLOSE TO UNIVERSITIES.NET YIELD 9.98% - GROSS YIELD 10.51%Tenancy Details
Shop- Let to a private individual for a term of 20 years from 21st March 2012 with provision for 5 yearly rent reviews at a rent of £13,500 per annum on an effective full repairing & insuring basis. The landlord holds a 3 month rent deposit.
HMO- Let by way of an AST agreement at a rent of £60,060 per annum (£5,005 per calendar month).
Combined annual income- £73,560 per annum
Location
The property sits on the corner of Lewes Road and Inverness Road. Lewes Road is one of the main arterial routes into Brighton, down towards the seafront, and is a popular area of the city among its student population. Local occupiers include Sainsbury's, Pepe's Piri Piri, and Subway.
Terms
Offers are invited in the region of £700,000 for the freehold interest subject to the existing tenancy. A purchase at this level would show a net yield of 9.98% & a gross yield of 10.51%.