well structured for easy acquisition by a SIPP/SSAS
Situated in the heart of this cosmopolitan town, the property is a short distance from the Ladysmith Shopping Centre, the mainline railway station and local amenities. Market Avenue is pedestrianised and provides a convenient link from Stamford Street Central to Wood Street. Other occupiers in the vicinity include Ashton Furnishing/Ashton Bathrooms, Jo Ferns Hair & Beauty and Ming’s Palace Restaurant.
The premises comprise a triple aspect character building, with a restaurant/coffee shop on the ground floor and basement, above which there are 5 flats. The flats are each let on 125 year leases from 10 September 2004 and so have approximately 112 years unexpired at a fixed ground rent of £25 per flat.
The restaurant is offered with vacant possession. The estimated rental value is £22,500 giving a total actual and estimated income of £22,625 per annum, which would show a yield of just over 9% before costs.
VOA records indicate an area of 219 sq m (2,357 sq ft) for the commercial section of the building (not verified by us).
The current owners have configured the legal title to make this a convenient acquisition for an investor seeking a property for inclusion into a SIPP or SSAS. The commercial elements of the property are held under a long lease and contain the bulk of the value. As this excludes all residential aspects, it can be transferred to a pension scheme to take advantage of the tax incentives applicable. The true freehold consists of the reversions in the flats and commercial long lease. Both the true freehold and long lease over the commercial elements are included within the sale price of £199,950.