Conversion of Offices into Serviced Accomodation

1 Kilbourn Street, Nottingham, NG3 1BQ

Here’s a property we generated at from our sell commercial premises marketing that is up and coming at our ‘Deal Clinic Tuesdays’ [lockercat]  

Property Description

The property is a typical Victorian, two storey property of traditional brick elevations beneath a pitched slate roof covering.

The property benefits from PVC rainwater goods and windows have been replaced with UPVC double glazed units throughout the accommodation. The property has been converted into a Gentleman’s Spa and we confirm that there is limited on-street car parking facilities available and a small yard to the rear elevation.

Location

The subject property is situated with a frontage to Kilbourn Street just off the A60 Huntingdon Street located approximately quarter of a mile distance to the north of Nottingham city centre, which links directly with Nottingham’s inner ring road, the A60 and the A610 which have links with Nottingham’s outer ring road, the A6514. The A610 provides direct access to Junction 26 of the M1 Motorway located approximately seven miles to the north west of the subject property.

Present Accommodation

Condition

Property is good condition

Construction Summary

Amenities

The property is located in the town centre of Nottingham. There is a wider range of shops, restaurants and other facilities nearby.

Key Strengths and Weaknesses

Key Strengths

• Desirable Town Centre location 5 Minute Walk
• Good travel connections
• Planning consent for conversion of upper units to residential, lapsed.

Key Weaknesses

• Property currently a building site
• No off road/garaged parking available with on street parking within a controlled parking zone (CPZ)
• Currently not habitable – limited mortgageablity
• Low demand for flats in the area
• Except for Flt 1 – the proposed flats do not have outside space

Key Opportunities

• Good letting potential – Serviced Accomodation
• Refurbishment and extension potential

Key Risks

• Global Economy
• Future increase in interest rates
• Impact of Coronavirus
• Impact of the 3% stamp duty surcharge

Tenure

• The property is owned on a freehold basis and assume that the title is free from any restrictions, encumbrances, rights of way, easements or other matters which would adversely affect value or marketability.

Council Tax

We have made enquiries of the Valuation Office Agency (VOA) website of which no information was displayed for the subject property.

Planning

The subject property lies within the administrative boundaries of the Nottingham City Council, being governed by local planning policies within the Local Development Framework (LDF) and Core Strategy, as well as national planning policies.

Article 4 Area

The property does lies within an Article 4 Area.

There are certain permitted development rights that cannot be withdrawn by an Article 4 direction. These exemptions are to ensure permitted development rights related to national concerns, safety, or maintenance work for existing facilities cannot be withdrawn.

Planning History

We have noted below the subject property’s recent planning history:

Proposed Elevation

Proposed Plans – Ground Floor

First Floor Plan

We have assumed that the property has planning consent for its existing uses and that it is not affected by any statutory notices, enforcement proceedings or planning proposals. A formal planning search should be obtained to include confirmation that there are no proposed developments within the vicinity, which would adversely impact upon the subject premises together with the land use allocation of the property within the relevant Local Plan. We do not consider that there is any significant prospect or potential for Change of Use or other development of the subject property or those in the vicinity, which would materially affect the value of the subject property.

Condition would command a sale price equating to £375,000 which is in line with the tone of values achieved locally and reflects the various strengths and weaknesses as summarised.

Demand, Saleability & Sustainability

In terms of saleability of the subject property, we would anticipate reasonable demand from a limited market. Demand is likely to come mostly from developers and buy to let investors for this specific area.

It is noted that some of the comparable data sale completions happened during the governments ‘Stamp Duty Holiday’. The stamp duty level is now back to its original levels, we would recommend that the lender takes this into account and that there may be a short to medium negative impact to the market.

We consider that a marketing period of around 3 to 6 months would be required in order to achieve a sale at the valuation figure provided.

We would anticipate demand for properties akin to that of the subject property to remain sustainable for the short to medium term, largely owing to its desirable location and close proximity to local amenities and facilities.

As stated, our current opinion of value has attempted to reflect market conditions as we currently find them and our valuation reflects prices being paid.

The subject property will be newly built, we would therefore consider that the flats would hold a ‘premium’ over much of the competing housing stock, they will hold effectively a ‘new build premium’, whereby the property may achieve a greater price than other available housing stock, either on a rate £/ft² or capital value basis. We would caution that once the property has been occupied and undergone a period of ‘wear and tear’, even on a short term basis, the property may not command the same ‘premium’ as at the time of sale.

In our opinion the newly constructed and refurbished subject property of seven units would achieve an aggregate rent of £tbc PCM once the scheme is complete to a good modern standard.

Valuation

Market Value of the subject property in its existing condition, with the benefit of Vacant Possession as at the date of valuation:

Having regard to the foregoing and subject to the assumptions set out earlier within this Report, we are of the opinion that the Market Value (as defined earlier in this report) of the freehold interest in the subject property as it exists, on the basis of full Vacant Possession as at the date of this report, is:-

£325,000

(Three Hundred Twenty Five Thousand Pounds)

Market Rent of the subject property when converted into seven newly complete self- contained units, as at the date of valuation:

Having regard to the foregoing and subject to the assumptions set out earlier within this Report, we are of the opinion that the Market Rent (as defined earlier in this report) of the subject property when converted into seven newly complete self-contained units, as at the date of this report, is:-

£tbc Per Calendar Month

(Three Thousand Pounds Per Calendar Month)

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