Advice on property sale/investment

[Axus]

Hi.
I would appreciate advice on sale or investment of retail premise please.
The property is a freehold single story beauty salon shop, let on a new 10 year full maintainence, repair and insurance lease at £4,800 per annum with 3 yearly revision in line with the RPI. It was last valued in 2009 at £60,000 which gives a todays valuation of around £75,000.
I need to raise £50,000 fairly quickly so looking to take an interest only loan, investment secured by first charge on the property, or sell it.
Any suggestions on which way to proceed will be gratefully received.
Regards

 

[realdeals]

Is £75,000 the open market value or are you basing this on a rental yield figure you have in mind?

 

[Axus]

Is £75,000 the open market value or are you basing this on a rental yield figure you have in mind?

Hi
Based on a valuation done by a previous tenent who was wanting to buy it but couldn't raise the cash.. As things are, and my particular circumstances, I would be prepared to accept a fair bit less for a quick sale.

 

[diyhelp]

I presume the property is fully paid off with no mortgage left?

If the rental income plus additional running costs do not exceed mortgage payments and interest, maybe it would be sensible to remortgage the property? That way you would be able to raise your £50,000, have circa £25,000 equity remaining in the property and your mortgage payments would be covered by rental income?

 

[Axus]

Thank you for your reply. I have tried re-mortgage and was turned down, probably because of my age ( 76 )

 

[Axus]

Also a lot have a minimum of £100k

 

[Axus]

Is £75,000 the open market value or are you basing this on a rental yield figure you have in mind?

I have decided to put it on the market for £48,000. Hopefully the 10% return might get someone interested.
Started with an ad in Daltons.

Thanks for the replies.

 

[Nicholas Wallwork]

Also don't forget you can post investment deals for sale on here as a Premium member! Just click on the Deals main menu item...


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