131-135 Regent Street

At a glance

Description

The property comprises 3no. Three storey properties which comprise separate ground floor lock-up shops with separate access to the upper parts which comprise separate flats at first and second floor levels. Each have been opened up horizontally to provide separate flats with eight bedrooms and shared facilities.

The building is of traditional three storey brick construction with pitched roof tiles, the front elevation being rendered and painted. Windows throughout are double glazed sash with wooden frames. To the rear are shared refuse receptacle areas and bike rack area.

The first floor is arranged to provide eight separate letting rooms of varying shapes and sizes with shared bathroom, separate shower room and shared kitchen and living areas. There is a central stairwell providing access to the second and third floors.

The second floor provides accommodation of very similar description and specification to that of the first floor, albeit in a slightly different arrangement.

There is a third floor (which will be incorporated into second floor flat if fold separately) which provides basic storage accommodation within the roof void and incorporates a rooflight over the stairwell. The basic storage has restricted headroom and is finished to a basic specification.

Generally, the letting rooms ( 8 on both first and second floor) are generally finished with carpeting, bed with mattress, chest of drawers, book shelf, wardrobe, drawers with mirror, waste bin and chair.

Bathrooms generally have three-piece white porcelain suites, linoleum floor and shower curtain to a combined bath and shower unit. The shower rooms are of similar specification with cubicle shower rather than bath.

The kitchens each have 2no. Electric ovens with gas hobs, extractor hoods, microwave, 2 no. fridge freezers dishwasher and separate washer dryer. Between the kitchen and living area (which are open) are tables with eight chairs and sofas with coffee table.

Both apartments currently have valid HMO licenses which were granted for a period of 5 years from October 2023 and are fully compliant with all new regulations.

Available area

The accommodation comprises the following areas:

The Location

The property is situated on the north side of Regent Street in central Royal Leamington Spa BETWEEN Park Street and Kenilworth Street. Regent Street connects close by to the east with Regent Grove, and to the west with the Parade, the prime retail location for the town.

The property is accessed via a ground floor access door to the West side of the property via concrete steps to a feature door accessing a hallway and corridor with stairs up to the flats and down to the access door to the rear of the building.

It is situated above three ground floor lock up retail shops made up of a barbers, a hair salon and a new coffee shop. The location is popular amongst retail and food & beverage operators with a good mixture of local and national businesses.

Upper parts of the properties in the local area are a mixture of residential and ancillary space.

The location proves popular with students with Warwick Uni close by and young professionals with a strong gaming sector within the town so much so that the town has been dubbed ‘Silicon Spa’.

Services

We understand the property is connected to all mains services including gas and mains drainage however, interested parties are advised to satisfy themselves that this is the case and that they are in good working order. The agents have not tested any apparatus on site and therefore, cannot verify the conditions.

We are advised that the property also has broadband with an internet system providing up to 1GB per second.

We are advised that the second floor rents are currently exclusive of utilities but the first floor are inclusive with an average running cost of £50 Per room/per month.

Each flat is separately metered.

Council Tax

Both properties are elected as Council tax Band D

Planning

The subject premises have been in use as houses of multiple occupation (HMOs) and as such would fall within class Sui Generis of the Town and Country Planning (Use Classes) order 1987, as amended by the Use Classes (Amendment) order 2005 and the Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020.

Copies of the HMO licences for each flat which were issued by Warwick District Council can be made available upon request.

EPCs

First Floor: D 66
Second Floor: B 82

Copies of both can be made available upon request.

Tenure, Tenancies and Title

The property is held on a long leasehold under two separate leases.

Each flat is held for a term of 999 years from 26 October 2012, there being approximately 987 years unexpired. The current rent for each is a peppercorn if demanded, without review. Each flat is responsible for a 25% contribution to service charge for the whole building, in respect of upkeep and maintenance of structural, external and common parts. In each case, the tenant is to keep the property in good and substantial repair and condition. The freeholder insures the property recovering the appropriate premium.

Permitted use is a single private dwelling or a dwelling in multiple occupation without permitted change. There is a shared use of the area for refuse receptacles and cycle rack.

Flat 1 (First floor) is currently occupied by 7 individuals paying £600 PCM inclusive and 1 individual paying £575 PCM inclusive meaning a total gross rental of £57,300 Per Annum or an estimated net rental of £45,840 Per Annum.

All tenants are on separate Assured Short-hold tenancy agreements and are holding over.

Flat 2 (Second Floor) is currently let to 8 students at £500 PCM meaning a gross rental of £48,000 Per Annum or an estimated net rental of £43,200. Per Annum.

Tenancy is due to expire in July 2024. We would assume a similar tenancy agreement will be created at similar levels of rent to that of Flat 1.

Proposal

The apartments can be sold individually or together at a Guide Price: £550,000 - £1,100,000 excl. for the long leasehold interest.

Across the whole, this is reflective of a 7.67 Net Initial Yield assuming a Net Rental of £89,040 Per Annum and purchaser's costs of 5.55%.

There is potential uplift to 7.9 % Net Initial Yield assuming rent for flat 2 is achieved in line with Flat 1 meaning a total estimated net rental of £91,680 Per Annum.

We are advised VAT is not applicable on this transaction.

Freehold of property and retail units may be available by way of separate negotiation

Legal Costs

Both parties will meet their own legal and professional costs in relation to this transaction.

Anti Money Laundering

The Money Laundering Regulations require us to conduct checks upon all Purchasers including Tenants. Prospective Purchasers will need to provide proof of identity and residence. For a company any person owning more than 25% must provide the same.