LCP’s tailored service means we can help investors make purchase decisions which will maximise their future returns. Given our client’s budget, they were able to acquire a mixed-use building or block of six or more units, taking advantage of a non-residential rate of stamp duty. This is not only capped at 5% but there is no additional rate stamp duty to pay, representing a significant front-end saving. Acquiring multiple units also diversified their investment with a good spread of tenants.
- Search area:
Prime Central London
- Specific preferences:
Six plus units or mixed-use building
- Purchase price budget:
The final selection
A six-storey mixed-use building in Marylebone, with a commercial unit on the lower ground and ground floors. Its upper floors consist of 4 one bedroom units and the third-floor benefitted from a sought-after roof terrace.
The property needed complete refurbishment, during which our projects team were able to design the residential units with a much more sensible, open plan layout and stylish interior design and furnishings, always in demand by PCL’s rental market. The common areas were also upgraded as first impressions really do count.
The commercial area has been completely opened up with ceiling heights raised to create an open, inviting and well-designed space on both floors, attractive to the luxury retail sector which typifies the area.
- Agreed purchase price:
The end result
Once refurbished, the flats proved very popular with the rental market and LCP were able to select blue-chip professionals as the occupants. In each case, the tenancy commenced swiftly after coming to market and delivered a gross return averaging 3.6%.
The commercial unit, in the final stages of its renovation, is attracting attention from high-end bridal boutiques to top hairdressers, all within its A1 Class Use. It is expected to let quickly due to its good-sized shop front and prime location.
The building as a whole should achieve a gross return of around 4.6%.
- Gross rental yield:
- Valuation post-refurbishment: