Well Located Freehold Investment Generating £45,700 p.a. Rental Income Average Unexpired Lease Length of 4.6 years 6.7% Investment Yield
Location This property is located in Horley, Surrey in a prominent corner location at the intersection of Massetts Road, Victoria Road and the High Street. Horley is located about 2 miles from Gatwick Airport, and about 3 miles from access to the M23, providing road connections to the M25, London and Brighton.
Description 2-4 High Street is an ornate Victorian building arranged over three floors. There are part rendered brick elevations with a pitched slate roof. The ground floor consists of two retail units, with No. 2 currently occupied by Mayhew Estate Agents and No. 4 by Active Prospects. No. 2 High Street benefits from return frontage onto Victoria Road. The upper parts have been sold off as 6 long leasehold flats.
78 Victoria Road is a mid-terrace two storey building, with a pitched roof and parapet wall along the front elevation. The property comprises a ground floor lock up shop let to Scope Ltd, with a long leasehold flat over the upper parts.
Accommodation The ground floor net internal area is approx.: 2 High Street: 82.31 sq. m. / 886 sq. ft. 4 High Street: 45.89 sq. m. / 494 sq. ft. 78 Victoria Road: 66.93 sq. m. / 720 sq. ft.
Tenure The freehold interest of the property is available and held under a single title (SY569101).
Price £675,000 Representing a 6.77% gross initial yield. This property is elected for VAT.
Rates Rateable Values: Units 1-2 at 2-4 High Street: £17,500 Unit 3 at 2-4 High Street: £9,900 78 Victoria Road: £11,750
Business Rates are the Responsibility of the Tenants
Legal Costs Each party to bear their own legal costs incurred in the transaction.
EPC Rating: D-85
2 High Street:
This property is let on a 10 year lease from 8th February 2012 granted to Cheques Centres Ltd. at a passing rent of £21,500 p.a.
It is contracted under eFRI terms and makes provision for an upward only rent review after 5 years. There is no break option.
The lease permits A1 or A2 use.
The lease was assigned to Mayhew Estates (East Grinstead) Ltd. via a deed of assignment dated 6th February 2015.
4 High Street:
A 10 year lease was granted to Mayhew Estates (Horley) Ltd. from 13th February 2008 at an initial rent of £15,000 p.a.
This lease is contracted under eFRI terms with an upward only rent review and option to break after 5 years (now passed). The permitted uses under this lease are A1 or A2.
The lease was assigned to Active Prospects via a Deed of Assignment dated 14th June 2017.
78 Victoria Road:
This ground floor shop is leased to the charity Scope on a 10 year lease term from 25th March 2013. The passing rent is £8,500 p.a. with an upward only rent review after 5 years of the lease term.
This lease is also held under eFRI terms. There is a tenant-only option to break the lease by giving 6 months notice any time after the 25th March 2018. The permitted use is A1 only.
Mayhew Estates (East Grinstead) Ltd.
This regional chain of estate agents has branches in Horley, East Grinstead and Horsham. The practice specialises in the sale and letting of residential property in East Surrey and West Sussex.
Experian assesses this company as having below average risk.
Active Prospects Ltd
A long standing charity operation enabling people with learning disabilities established in 1989. An AGA has also been provided by the Assignor, Mayhew Estates Ltd upon Assignment of the existing lease in June 2017.
This long standing charity seeks to create equal opportunities for those with disabilities. For the year ending 31st March 2016 Scope reported £3.86m pre-tax profit with £29.3m in total fixed assets, £11.6m in current assets and £10.7m in total liabilities. This charity is assesses as having a very low credit risk.
Residential Long Leases
2-4 High Street: There are 6 residential long leaseholds of the upper parts, each generating £100 p.a. ground rent (without review). Three of these long leases are now under 80 years (71) unexpired with associated lease extension premiums due when next transferred.
78 Victoria Road: There is a single long leasehold of the first floor flat producing £100 p.a. ground rent and expiring on 28th September 2128.
2-4 High Street & 78 Victoria Road, Horley, Surrey, RH6 7AY
Type: Retail, Retail - High Street, Residential
2 High Street, RH6 7AYGBHorleySurreyRH6 7AY2, High Street