Retail premises for sale in Fenkle Street, Alnwick NE66

Location

Alnwick is situated approximately 30 miles to the north of Newcastle upon Tyne on the A1. It is the seat of the Duke of Northumberland with a current population of approximately 8,500 but with a huge influx of visitors during the tourist season estimated at over 60,000. Tourist attractions include Alnwick Castle and Gardens.

Fenkle Street lies to the north west of the town centre and close to the Market Place and Alnwick Castle. It has always been a popular retail location with local traders and adjoins the popular Market Tavern to the north and the Chocolate Spa to the south. This part of Fenkle Street lies close to Clayport Street which adjoins the Market Place and Bondgate Within. Fenkle Street benefits from on street parking.

Description

The property consists of a substantial stone building on 3 floors comprising 2 prominent shops and a central doorway providing access to the residential apartments above.
The two shops are let on full repairing and insuring terms with a fixed annual service charge subject to an index linked uplift. In addition, there are 10 flats, which have been sold off long-leasehold. The flats were originally let in 1992 for 99 years and produce an annual ground rent of £875 per annum.

3 Fenkle Street comprises a retail unit, and showroom with WC and staff area together with basement storage. The property has recently been refurbished to a very high standard.

5 Fenkle Street comprises a reception area and 2 treatment rooms with a staff WC and kitchenette.
Flats are accessed to the rear through Angel Lane and over the upper floors.

Accommodation

3 Fenkle Street
Ground – 55 sqm / 592 sq ft
Basement – 46 sqm / 495 sq ft

5 Fenkle Street
Ground – 29 sqm / 312 sq ft
total – 130 sq m / 1,400 sq ft

Energy performance

The property has the following EPC ratings:

3 Fenkle Street – D
5 Fenkle Street – C

Rating assessment

The rating value assessments currently appearing on the voa website are as follows:

3 Fenkle Street £10,500
5 Fenkle Street £6,000

Tenancy information

3 Fenkle Street is let to a private individual t/a Dovecote Northumberland (candle manufacturer and retailer) on a 5 year lease from August 2023 at a rent of £9,000 per annum on effective Fri terms via way of a fixed service charge. There is a tenant only break clause on the third anniversary of the lease commencement.

5 Fenkle Street is let to a private individual t/a Smile Health Alnwick (chiropractor) on a 5 year lease from January 2024 at a rent of £7,500 per annum on effective Fri terms via way of a fixed service charge.

10 ground rents producing a total rent of £885 per annum.

The total rent is therefore £17,385 per annum

Additional income opportunity

There is potential to receive additional premiums from the leaseholders for negotiating extensions under the Leasehold Enfranchisement Act for the four flats that have not yet had their original term extended. There are only 67 years left on these lease terms. Premiums have also been agreed with some long-leaseholders to lift restrictive covenants in their lease to allow the properties to be used as short-term holidays lets. There remains five flats that do not currently have permission.

Proposal

Offers in excess of £210,000 (Two Hundred and Ten Thousand Pounds) are invited for the freehold interest in the property. A sale at this level reflects a net initial yield of 8.30% allowing for purchasers costs of 2.37%.

VAT

We are advised that the property is not elected for VAT.

Anti-money laundering

In accordance with anti-money laundering regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.

Legal costs

Each party to bear their own legal costs incurred in the transaction.