£2.5M SEMI-COMMERCIAL Case Study: Would You Buy This Deal?

A £2.5 million semi-commercial investment can look compelling at first glance, but would it still stack up once you test the income, tenants, operating costs and risks behind the headline figures? In Episode 123, Gareth Morgan and Mark Watts work through a real multi-unit freehold opportunity comprising 24 student let units and commercial space on the ground floor. They share how they moved beyond the asking price and gross rental income to assess whether the deal genuinely worked for them. In this episode, we discuss: ·       How they approached a £2.5M semi-commercial investment opportunity. ·       Why acquisition costs such as stamp duty, VAT, professional fees and potential capital expenditure need to be included in the numbers. ·       How student lets, private residential use and Local Housing Allowance created different Plan A, Plan B and Plan C scenarios. ·       Why gross rental income can be misleading once bills, maintenance and occupancy are considered. ·       How commercial tenant covenant strength, lease terms and break clauses can affect the quality of the income. ·       Why separate utilities, planning, fire safety and other compliance checks matter with multi-unit property. ·       How blended yields, finance costs, cash flow and cash-on-cash return fed into their own view of value. ·       Why getting offered 75% loan to value does not automatically mean borrowing to that level is the right decision. ·       How they used their due diligence to arrive at an offer below the £2.5M asking price. This episode gives property investors a practical look at the level of analysis that can sit behind a larger semi-commercial deal and why a good investment needs to remain manageable when circumstances change, not only when every assumption goes to plan. If you are considering a semi-commercial or multi-unit investment and want to discuss the funding options available for your deal, get in touch with the team at Prime Property Finance. Contact us now if you would like to know more Home - Prime Property Finance Disclaimer This podcast is produced by Prime Property Finance, an independent mortgage brokerage. The views expressed are for general information purposes only and do not constitute personal or financial advice. Listeners should avoid taking action based solely on the content discussed and are encouraged to seek advice tailored to their individual circumstances. The information shared reflects the personal opinions of the hosts and any guest speakers and does not necessarily represent the views of Prime Property Finance as a company. Prime Property Finance is not responsible for any losses or actions taken as a result of this podcast. Privacy Policy - Prime Property Finance