4 bed commercial for sale

Located in St. Edward Street Leek ST13 5DS
Offers over £325,000 (both). Offers over £165,000 (each).
Offers over £215,000 – 4 flats

• Multiple mixed residential commercial property – 2 shops, 2 cellars, 4 flats
• Very favourable trading location attracting high rents from national chains
• High yielding, low management, safe investment approaching 14% yield
• Recent RICS valuation of £390,000
• Potential to further increase capital uplift by splitting title
• Approximately 275m2 over 4 floors
• Excellent commercial location on the busiest corner of Leek town centre
• Potential for further ground floor flat to rear, retaining shops (permitted development)
• Conservation area but not a listed building
• Potential to create two further full-height cellar commercial units
• Rear access on both sides to shops, flats and cellars

Leek is a beautiful traditional small market town on the edge of the Peak District in the affluent
Staffordshire Moorlands with a vibrant and thriving town centre with very few voids.

The whole building has been insulated to modern standards with 100mm Celotex-type insulation
to all external facing walls and 400mm loft insulation. EPCs should achieve a C if not B. The
shop units internally will be shortly ready for rent as a bare box, ready for retailer shop-fit.
Electrics, smoke alarms and emergency lights have been fitted to the shops and flats.

The shops front the busiest corner of Leek town centre in a very prominent and advantageous
trading position 10 metres away from the car park adjoining the pedestrianised zone and 2
further main car parks around 50 metres away.

Despite not being advertised for rent at the time, the national chain William Hill enquired about
renting the shops due to their unique trading position. The shop windows are most visible in all
directions as the traffic slows to the T-junction. The site neighbours a very busy Weatherspoons
pub and other high footfall outlets.

3 one-bed flats 3 x £575 pcm £1,725 pcm £20,700 pa
Studio flat £500 pcm £6,000 pa
2 Shop units 2 x £800 pcm £1,600 pcm £19,200 pa
2 Cellars/storage 2 x £200 pcm Totals £400 pcm £4,800 pa
£4,225 pcm £50,700 pa

Rental Projections in Existing Format
This represents a very healthy yield approaching 16%. Investors and landlords will
appreciate how attractive this is. It is unusual to find a yield this high (other than HMO
style properties, which also have more onerous management profiles). This property
consists of small and easy to rent single-lets and commercial units offering the landlord
a safe spread and an easily managed, arms-length, high yielding investment.

Study Proposal for Augmented Rental Projections With Altered Format
With further minor development works (described below) it would be possible to achieve a
significantly augmented rental income. This is a suggestion and buyers must do their own due
diligence to verify the feasibilities suggested.

• Conversion of attic space over each top floor flat to add a further bedroom and bathroom to
each top floor flat. The existing attic structures are favourable for a straightforward conversion.
There are existing capped-off stairwell openings.
• Each attic space would add an additional floor area of approximately 18m2 to each flat with at
least 1.5m height at the eves and approx 2.5 m at the centre, creating 2 extra en-suite
bedrooms.
• Each top floor flat could be rented as a MiniMo with two sharers, each with en-suites, shared
kitchen/lounge.
• Divide bedrooms of both first floor flats to create 2 bedrooms in each flat. Each first floor flat
could be rented as a MiniMo with two sharers.
• Creation of a further ground floor flat to the rear of the shops under permitted development, yet
still retaining both shop units.
• The newly created ground floor flat would have two bedrooms, each with their own en-suites
and a shared kitchen/lounge for two tenants as a MiniMo.
• All newly created bedrooms mentioned above would be greater than 6.51m2 to comply with
minimum HMO space standards, although with only two sharers per flat, they would not
presently be subject to any HMO regulation.
• Shop units could then be rented out with connected cellars (one internal staircase exists in
shop no.6, a further internal staircase to shop no.8 would be needed).
• Each new shop unit with connected cellar would then be approximately 40m2 over two levels,
actually a larger floor area than the existing units. This would forgo the lesser cellar rental
potential in favour of a higher per square foot shop unit rental, thereby further boosting the
commercial space yield. Despite sacrificing the rear shop space to create the further ground
floor flat, that again would boost the residential rental yield without significantly reducing the
commercial yield.
• The option remains to uncap and re-open the existing front street cellar entrances. The original
steps that access the front of the cellars are in tact. There are existing doorways and large
window openings to the front of the building. Works required would be:
• railings/gates to front stairwells
• un-cap stairwells
• doors/frames to existing openings
• windows to existing openings (cellar units would actually have large windows and daylight!)
• This would then create the possibility of FOUR small commercial shop units all accessed from
the street, boosting the rental yield and spreading the void risk. These smaller units would be
suitable for a multitude of vendors including tatooists, hairdresser/barber, salon, estate agent,
vape etc. What the area needs the most however is a little Greasy Spoon!
• The above works are mostly “tweaks” to the existing and could be carried out with a modest
budget to achieve a much augmented rent potential and more favourable management profile as
follows:
Rental Projections in Augmented Format:
FIVE flats with two sharers each (10 tenants, 5 of the bedrooms would have en-suites):
Per tenant: £375pcm 10 tenants £3750pcm Per Annum £45,000
Two x 2-storey shop units (ground floor + connected cellars):
Per shop £750pcm 2 shops £1,500pcm Per Annum £18,000
Total Projected Rental Income: Per Annum £63,000
This would equate to a yield approaching 20% with minimal/easy HMO management
issues.

Further Considerations:
• reopening the capped-off front stairwells would add a further dividend to the per square foot
rental figure. I would estimate the four shop units to rent around £500pcm each, boosting
rental income by a further £6,000 pa to £69,000. The greater benefit in this case however
would be the risk spread for potential voids and making it easier and quicker to rent each unit.
• I have deliberately assumed conservative rental estimates and they could potentially be
greater.
• The compact, terraced and very well insulated nature of the units makes them economical for
tenants with low utility costs. All flats would be band A. The central location makes them very
convenient and ensures few voids for either shops or 6 to 8 St. Edward Street Leek ST13 5DS
Offers over £325,000 (both)
Offers over £165,000 (each)
Offers over £215,000 – 4 flats
• Multiple mixed residential commercial property – 2 shops, 2 cellars, 4 flats
• Very favourable trading location attracting high rents from national chains
• High yielding, low management, safe investment approaching 14% yield
• Recent RICS valuation of £390,000
• Potential to further increase capital uplift by splitting title
• Approximately 275m2 over 4 floors
• Excellent commercial location on the busiest corner of Leek town centre
• Potential for further ground floor flat to rear, retaining shops (permitted development)
• Conservation area but not a listed building
• Potential to create two further full-height cellar commercial units
• Rear access on both sides to shops, flats and cellars

The whole building has been insulated to modern standards with 100mm Celotex-type insulation
to all external facing walls and 400mm loft insulation. EPCs should achieve a C if not B. The
shop units internally will be shortly ready for rent as a bare box, ready for retailer shop-fit.
Electrics, smoke alarms and emergency lights have been fitted to the shops and flats.
The shops front the busiest corner of Leek town centre in a very prominent and advantageous
trading position 10 metres away from the car park adjoining the pedestrianised zone and 2
further main car parks around 50 metres away.
Despite not being advertised for rent at the time, the national chain William Hill enquired about
renting the shops due to their unique trading position. The shop windows are most visible in all
directions as the traffic slows to the T-junction. The site neighbours a very busy Weatherspoons
pub and other high footfall outlets.
3 one-bed flats 3 x £575 pcm £1,725 pcm £20,700 pa
Studio flat £500 pcm £6,000 pa
2 Shop units 2 x £800 pcm £1,600 pcm £19,200 pa
2 Cellars/storage 2 x £200 pcm Totals £400 pcm £4,800 pa
£4,225 pcm £50,700 pa

Rental Projections in Existing Format
This represents a very healthy yield approaching 16%. Investors and landlords will
appreciate how attractive this is. It is unusual to find a yield this high (other than HMO
style properties, which also have more onerous management profiles). This property
consists of small and easy to rent single-lets and commercial units offering the landlord
a safe spread and an easily managed, arms-length, high yielding investment.

Study Proposal for Augmented Rental Projections With Altered Format
With further minor development works (described below) it would be possible to achieve a
significantly augmented rental income. This is a suggestion and buyers must do their own due
diligence to verify the feasibilities suggested.
• Conversion of attic space over each top floor flat to add a further bedroom and bathroom to
each top floor flat. The existing attic structures are favourable for a straightforward conversion.
There are existing capped-off stairwell openings.
• Each attic space would add an additional floor area of approximately 18m2 to each flat with at
least 1.5m height at the eves and approx 2.5 m at the centre, creating 2 extra en-suite
bedrooms.
• Each top floor flat could be rented as a MiniMo with two sharers, each with en-suites, shared
kitchen/lounge.
• Divide bedrooms of both first floor flats to create 2 bedrooms in each flat. Each first floor flat
could be rented as a MiniMo with two sharers.
• Creation of a further ground floor flat to the rear of the shops under permitted development, yet
still retaining both shop units.
• The newly created ground floor flat would have two bedrooms, each with their own en-suites
and a shared kitchen/lounge for two tenants as a MiniMo.
• All newly created bedrooms mentioned above would be greater than 6.51m2 to comply with
minimum HMO space standards, although with only two sharers per flat, they would not
presently be subject to any HMO regulation.
• Shop units could then be rented out with connected cellars (one internal staircase exists in
shop no.6, a further internal staircase to shop no.8 would be needed).
• Each new shop unit with connected cellar would then be approximately 40m2 over two levels,
actually a larger floor area than the existing units. This would forgo the lesser cellar rental
potential in favour of a higher per square foot shop unit rental, thereby further boosting the
commercial space yield. Despite sacrificing the rear shop space to create the further ground
floor flat, that again would boost the residential rental yield without significantly reducing the
commercial yield.
• The option remains to uncap and re-open the existing front street cellar entrances. The original
steps that access the front of the cellars are in tact. There are existing doorways and large
window openings to the front of the building. Works required would be:
• railings/gates to front stairwells
• un-cap stairwells
• doors/frames to existing openings
• windows to existing openings (cellar units would actually have large windows and daylight!)
• This would then create the possibility of FOUR small commercial shop units all accessed from
the street, boosting the rental yield and spreading the void risk. These smaller units would be
suitable for a multitude of vendors including tatooists, hairdresser/barber, salon, estate agent,
vape etc. What the area needs the most however is a little Greasy Spoon!
• The above works are mostly “tweaks” to the existing and could be carried out with a modest
budget to achieve a much augmented rent potential and more favourable management profile as
follows:

Rental Projections in Augmented Format:
FIVE flats with two sharers each (10 tenants, 5 of the bedrooms would have en-suites):
Per tenant: £375pcm 10 tenants £3750pcm Per Annum £45,000
Two x 2-storey shop units (ground floor + connected cellars):
Per shop £750pcm 2 shops £1,500pcm Per Annum £18,000
Total Projected Rental Income: Per Annum £63,000
This would equate to a yield approaching 20% with minimal/easy HMO management
issues.

Further Considerations:
• reopening the capped-off front stairwells would add a further dividend to the per square foot
rental figure. I would estimate the four shop units to rent around £500pcm each, boosting
rental income by a further £6,000 pa to £69,000. The greater benefit in this case however
would be the risk spread for potential voids and making it easier and quicker to rent each unit.
• I have deliberately assumed conservative rental estimates and they could potentially be
greater.
• The compact, terraced and very well insulated nature of the units makes them economical for
tenants with low utility costs. All flats would be band A. The central location makes them very
convenient and ensures few voids for either shops or flats.

Serco have indicated that they are looking for properties in the area for long, fixed term and
generous rents offering further scope to increase the profile of this investment.
If all the rent augmentation measures were implemented successfully along with Serco contracts
then this could boost the rental figures well in to the £70,000s, producing a potentially quite
astronomical yield in to the mid 20%s, yet a very modest management profile!

There is strong residential demand in Leek but the flats would also be attractive as serviced
accommodation units. Leek is only 10 miles from Alton Towers, 1 mile to Lake Rudyard and 2
miles from The Peak District National Park. There are relatively few accommodation providers in
Leek and there is a big gap in provision between The Premier Inn at £55 per night and more
luxurious providers at £90+ per night. None of the competition have a thriving Weatherspoons
pub with delicious yet affordable fayre next door either!

Informed investors will be aware that despite the recent stamp duty tax hike, there are still SDLT
benefits on mixed commercial/residential properties.
A RICS valuation was done in April which indicated a value of £390,000 in the present format.
There is potential for considerable further capital uplift by splitting the title for the individual units.
On present comparisons of similar flats and shop units in Leek a GDV on splitting conservatively
of around £475,000 could be achieved. Prospective buyers are encouraged to do their own research. There are now companies available that have expertise in this area and specialise in
this kind of title splitting investment model and can assist buyers to achieve the best possible
uplift.

Please enquire for details.