Townhouse with Ground-Floor Beauty Salon in Leeds
£320,000 · 20 years · 6.70% fixed 3 yrs. An investor purchased a four-storey Leeds townhouse in which the original owner had operated a beauty salon from the ground floor for ten years.
The Client
Investor
The Challenge
An investor purchased a four-storey Leeds townhouse in which the original owner had operated a beauty salon from the ground floor for ten years. The upper three floors comprised a self-contained residential flat. The owner-occupier of the salon was selling to retire, meaning the commercial element would be vacant on completion.
Our Solution
Doulton identified a semi-commercial lender willing to accept the commercial void, assessing the property on the residential flat income and the strong demand for beauty and wellness premises in that Leeds street. A modest vacancy allowance was built in. The residential flat income alone comfortably serviced the mortgage.
The Outcome
Property purchased. Commercial unit re-let within seven weeks to a nail technician on a three-year lease. Blended income on full occupancy generated a yield of 6.9% on purchase price. Key highlights: Commercial void accepted - residential income covered mortgage alone; Re-let to nail technician within 7 weeks; Full occupancy yield of 6.9% achieved.
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