Former Bank Branch Conversion - Office and Flat Above in a Market Town
£395,000 · 20 years · 6.65% fixed 5 yrs. An investor purchased a former bank branch building in a Midlands market town that had been converted to a ground-floor professional office suite and a self-contained flat above.
The Client
Investor
The Challenge
An investor purchased a former bank branch building in a Midlands market town that had been converted to a ground-floor professional office suite and a self-contained flat above. The office was let to a local firm of solicitors on a three-year lease. The flat was tenanted. Both units were income-producing from day one.
Our Solution
Doulton placed the semi-commercial mortgage with a lender assessing both the solicitor's office covenant and the residential flat income. The legal sector commercial tenant - while a small local firm - provided a professional covenant that lenders view positively. The residential element was straightforward.
The Outcome
Building purchased as an income-generating mixed-use investment. Solicitor tenant subsequently renewed on a further three-year term. Combined yield: 6.8% on purchase price. Capital growth in market town commercial property in the region has been steady. Key highlights: Solicitor office covenant treated positively by lender; Both units income-generating from completion; Combined yield of 6.8% - solicitor subsequently renewed for further 3 years.
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