Description
A rare probate sale offering mixed-use leasehold investment offering immediate income with significant upside in both rental return and capital value, ideally suited to landlords seeking a stable, largely passive asset with clear and achievable growth strategies.
The property is held on one leasehold title and comprises a ground floor commercial unit (long-established barber shop) together with a three-bedroom residential house, both let to long-standing occupiers. Importantly, rents have not been reviewed or increased since 2012 and remain substantially below current market levels, which is fully reflected in the asking price but presents an attractive opportunity to capture income reversion over time.
Of traditional brick construction, the property is presented in average internal condition and would benefit from a minor cosmetic uplift to enhance rental and capital values if it becomes vacant.
461a Gidlow Lane
The residential element comprises a three-bedroom semi-detached house comprising;
1. Ground Floor: Lounge, kitchen and utility room
2. First Floor: Three bedrooms and a family bathroom
Externally, the property benefits from a front garden, external toilet and a brick-built single garage, providing useful ancillary space.
461 Gidlow Lane
The commercial unit is currently occupied as a long-standing barber shop. This space was formerly the lounge of the residential property and benefits from:
1. Double glazed windows
2. Central heating
The commercial tenant currently utilises an external WC located adjacent to the garage.
Current Income
1. Gross Rental Income: £8,820 per annum. Representing a 6.7% yield.
2. Income reflects historic tenancies and is well below market levels.
Income Growth Potential (Minimal Intervention)
Market Re-Letting (No Refurbishment Required)
Conservative market rents are estimated at:
1. Commercial: c. £4,800 pa
2. Residential: c. £8,400 pa
3. Total: c. £13,200 per annum. Representing a 10.1% yield.
Additional uplift achievable following light cosmetic improvement.
Long-Term Asset Management Upside
For landlords seeking future flexibility rather than immediate development, there is strong potential to enhance both income security and capital value by:
1. Splitting the leasehold title (subject to consents)
2. Installing a Saniloo/WC within the commercial unit
3. Creating two fully independent, self-contained properties
Estimated physical and legal costs are c. £10,000, with an anticipated end value to be close to £200,000, offering a compelling medium-term value-add strategy.
Alternative Strategy:
There may also be scope to demolish the garage and reconfigure the property back into a single dwelling, aligning with neighbouring properties. Comparable houses on the street are valued at circa £250,000, presenting a further high value potential exit strategy.
Properties offering ready made passive income, with so much potential do not come on the market. Viewings are strictly by appointment only. Please call the office to arrange a viewing,
Council Tax Band: B
