89 Church Road, Hove, East Sussex, BN3 2BB
A freehold mixed residential and retail investment. A substantial five storey part bay fronted terraced property with two commercial lets in the basement and on the ground floor and two x two bedroom flats and one x three bedroom flat above with separate entrance to the commercial side. A first rate investment with a good income.
|The three flats are let on short hold tenancies and are in need of some modernisation to ensure the best possible rents. The ground floor is trading as a hairdressers with two major rooms, wc and storeroom, also utilizing part of the basement as a staff room and laundry room. (total 740 sq feet) This is let on a 5 year lease at a rent of £10,300 pa on a full repairing and insuring basis. The lower ground floor is used as an office on a 3 year lease let a £8,012 pa internal repairing only. (total 600 sq feet)|
The property is located in a prime commercial area of Hove being on the north side of the road close to the junction with The Drive. This busy section of Church Road is predominately offices on the north side and restaurants, coffee houses and shops on the south side. Church Road is a major bus route and Hove mainline station is a ten minute walk.
Living room 21'10 x 13'2 Original fireplace,
Bedroom 1, 14'x 6'9,
Kitchen 15'6 x 4'8,
Bedroom 2, 16'11 x 13'2,
Bedroom 3, 13'2 x 6'1,
Bathroom 8'2 x 4'9
Living room 18'10 x 11'6
Bedroom 1 18'10 x 8'2
Bathroom 6' x 5'
Kitchen 11'9 x 8'1
Bedroom 2 17'3 x 11'2
Living room 19' x 11'7
Bedroom 1 19' x 8'3
Kitchen 13 x 9'7
Bathroom 7'5 x 4'8
Bedroom 2 17'5 x 10'
The flats presently produce an income of £25,800 pa, but after modernisation this should increase to £36,000
|Shopping Area,Town Centre,Train Station,Coffee Shop,Beach,Park,Restaurants,Sussex County Cricket Ground|
|Outside:||Good sized garden, unused.|
|3 x new bathrooms, 3 x gas central heating, decoration, carpets, blinds, appliances, work to roof, work to plasterwork|
|A professional electrical survey may reveal work not covered by the update. It is recommended that an electrical survey is carried in additon to the valuation survey at a cost of GBP 180.00 (inclusive of VAT)|
|These details are produced in good faith but are set out as a guide only and do not constitute any form of contract nor any statement contained therein to be representation or warranty. Any intended purchasers must satisfy themselves by inspection or under advice of their solicitor particularly in context of any approved plans for other on site or nearby development.|
A Financial Forecast highlighting costs and projected income is included for each property. This data enables clients to make informed decisions before proceeding with a purchase. Please see below for Financial Forecast Guide.
|Set Up Costs|
|Solicitors Fees||£5,000||incl VAT excl disbursements|
|Assumed Purchase Price||£625,000|
|Estimated Update||£59,100||incl 10% supervision fee|
|Stamp Duty||£31,250||commencing @ 5% over £500k|
|Estimated Rental Income|
|Rent per week||£1,040|
|Rent per month||£4,500|
|Rent per year||£54,080|
|Owner's Annual Operating Costs|
|Rental Agent's Fees||£9,328||@ 15% plus VAT|
|Ground Rent||£000||per annum|
|Maintenance Charge||£3,000||per annum|
|Gross Rent Per Year||£54,080|
|Annual Operating Costs||£12,328|
|Nett Cash In Hand pa||£42,350|
|Nett Cash In Hand pm||£3,520|
|Mortgage - Assuming 70% Loan||£437,500|
|Total Cash Outlay||£287,850|
The price of the property as advertised.
SET UP COSTS
These are costs associated with the purchase of the property.
The Solicitors Fees are the costs for undertaking the legal work. This fee does not include the disbursements. The RDA Research Fee of £2,000 covers our expenses in relation to sourcing and identifying the property as an ideal investment in terms of asset growth and rental potential. It also includes our assistance with the purchase process. RDA monitors and progress chases property purchases and assists with all/any matters arising on behalf of our clients.
The fee is payable in two parts. £1,000 is due upon a client’s decision to purchase. This initial payment is not refundable but can be carried forward to an alternative purchase should the sale fall through. The balance of £1,000 is payable upon exchange of contracts of sale. When a mortgage is required the cost of the lender's arrangement fee and survey also need to be factored in.
These are the direct costs of purchasing the property. Assumed Purchase Price is the price which RDA anticipates being able to negotiate on behalf of the client. Estimated Update is based on RDA's recommendations for refurbishment. Stamp Duty Land Tax is the tax payable to the UK Government when you buy property.
OWNER'S ANNUAL OPERATING COSTS
Rental Agent's Fees are deducted monthly by the rental agent. Ground Rent is an annual fee charged by the Freeholder of a Leasehold property.
Maintenance Charges are a share of the costs of the maintenance of the building and the building insurance but do not include occasional internal maintenance costs.
An overview of the annual income and expenditure.
TOTAL CASH OUTLAY
Calculated as 30% of the Assumed Purchase Price plus Estimated Update, Stamp Duty and Set Up Costs.