• Attractive retail investment within the centre of York

• Cathedral city of York; a major tourist destination

• Prominent retailing position

• Let to Rush Hair (hair and beauty salon)

• Freehold

• Grade II listed building

• VAT free investment

• £478,000, subject to contract

• 7.5% net initial yield

• 8.0% yield in September 2022

The property is situated on the southern side of Market Street close to the junction with Feasgate, just off Parliament Street and within the core retail are of the city.

The property occupies a prime position being next to Superdrug and opposite Costa Coffee.

Other tenants in the vicinity include Sainsbury’s Local, Zara, Starbucks, Sports Direct, Boots, TK Maxx, Nando’s, The Disney Store, HSBC, H&M and Café Nero.

The property comprises a charming period Grade II listed terrace building arranged over basement, ground and two upper floors.
The ground floor comprises a “Rush Hair & Beauty” salon with a sales area to the front and a staff room, kitchen, storeroom, office and WCs to the rear. There is also a separate room used for hair washing. The basement is accessed by a hatch within the floor.

The upper floors comprise of self-contained residential accommodation and are accessed via a door the left of the retail unit. The upper floors are to be retained by the vendor on a long leasehold of 999 years at a peppercorn rental; planning permission has been obtained to convert this area of the property to residential accommodation.

Freehold.

The ground and basement is let to Rush Franchising Properties (Six) Limited (13066329), assigned from Rush Hair Limited (0377437), on a full repairing and insuring lease for a term of 10 years from 27th April 2016, expiring on 26th April 2026. Therefore, there are approximately 4.5 years unexpired.

The lease was varied in October 2020:

a. A Covid clause was inserted reducing the rent to £0.00 if the property was forced to close as a result of a mandatory Covid prevention measure.
b. The rent was rebased as follows:
i. Rent free 25.03.2020- 28.09.2020
ii. Rent 29.09.2020- 28.09.2021: £35,000
iii. Rent 29.09.2021- 28.09.2022: £37,500
iv. Rent 29.09.2022- term expiry: £40,000
c. Rent to be paid monthly in advance from 29.09.2020
d. Rent review was removed
e. Break option was removed

The property has not been opted for tax and therefore Value Added Tax will not be payable on the purchase price.

We are instructed to seek a figure of £478,000 (Four Hundred and Seventy Eight Thousand Pounds) subject to contract. This price reflects a net initial yield of 7.5% rising to 8.0% in September 2022 assuming purchasers’ costs of 4.60%.

Please note that a purchaser will be re-charged the costs of searches (£1,231.68) which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of 1.00% plus VAT of the final agreed sale price.

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