Investment Property – High Street, Northallerton

Description

140 High Street comprises a substantial Victorian building, dating back to the late 1800’s, with later additions.

The main property is red brick with slate roof, arranged over 3 storeys, forming an inner terrace of the established Northallerton High Street. To the rear is a single storey flat roof extension.

Beyond this to the east is 140 a high Street, a 2 storey detached annex, also built of clay brick, under a slate pitched roof. There is vehicle access via the Tesco car park, and a single parking space.

Internally the layout has clearly changed in parts over the years, particularly in terms of the use, as it is believed the property was originally designed and built as a residential dwelling. Today the main part of the ground floor area is in use as a retail unit, with stores to the rear within the flat roof extension. This has a double fronted glazed showroom frontage, recently re-fitted with new timbers and glazing, with central pedestrian access. To the south side of the retail unit is an original entrance door leading to a side passage. From here there is an entrance to the upper floors.

The first and second floors are subdivided into a number of individual rooms, currently in use as a spa and beauty salon.

140a High Street currently provides a self-contained small office facility.

Tenure/Tenancies

The property is held freehold and is subject to various occupational tenancies.

The property is registered with Title Number NYK263196. Rights of access are reserved across the Tesco Stores Ltd car park adjoining the Property to the east, as well as maintenance rights.

There are three current tenancies in place across the Property including Cancer Research UK, Mathieson Consulting Ltd and a private individual, Melanie Turner, trading as Pure Shores Wellness. Cancer Research/formerly Imperial Cancer Reseaerch, have been in occupation of this premises in excess 24 years.

The current combined passing rent is £42,420 pa exclusive.

The key terms of the occupational tenancies are summarised below:

140 High Street – Part Ground Floor

Tenant:                                Cancer Research UK

Lease Date:                      11^th November 2024 (as renewed).

Original Lease:               7^th November 2000 and 19^th June 2012

Term:                                    5 years from 11^th November 2024 (Expires 10^th November 2029)

Break Clause:                 Tenant right to break 11^th November 2027 (subject to 6 months prior                                                   notice)

Passing Rent:                 £27,500 pa exclusive

Rent Review:                   N/A

Repairs:                             Effective Full Repairing terms, T responsible for interior, LL for exterior,             subject to T repaying 50% of any expense incurred by LL in carrying out      repairs to exterior and structure of property.

Insurance:                        T to repay 50% of annual premium incurred by LL.

User:                                    As a charity shop with other A1 uses permitted with LL consent.

Alienation:                        T permitted to sublet or assign whole, subject to LL consent, not to be                unreasonably withheld.

140 High Street – Part Ground, First & Second Floors together with single car parking space

Tenant:                                Melanie Clair Turner t/a Pure Shores Wellness

Lease Date:                      6^th August 2022 (as renewed) Lease contracted out of 1954 Act.

Original Lease:               Initial Lease dated 6th September 2016

Term:                                    5 years from 6^th August 2022 (Expires 5^th August 2027).

Break Clause:                 Tenant right to break 6^th September 2025 (subject to 6 months prior notice)

Rent:                                    £7,420 pa exclusive.

Rent Review:                   N/A

Repairs:                             Tenant Internal Repairing terms only. T responsible for interior, LL for                                                  exterior.

Insurance:                        LL to insure and recover fair proportion from T.

User:                                    Beauty salon with ancillary offices or such other use in accordance with         Class E (g) of T&CP Act.

Alienation:                        T permitted to assign or sublet whole only.

140a High Street – Ground & First Floors

Tenant:                                Mathieson Consulting Ltd

Lease Date:                      17^th June 2024 (as renewed). Lease contracted out of 1954 Act.

Original Lease:               27^th April 2022

Term:                                    2 years from 28^th April 2024 (Expires 27^th April 2026)

Passing Rent:                  £7,500 pa exclusive.

Repairs:                             Internal Repairing terms, T responsible for interior repairs and                                                               decoration.

LL responsible for exterior repairs.

Insurance:                        LL to insure and recover from T.

User:                                    To use as an Office.

Alienation:                        T may sublet or assign whole.

Covenant Details

Cancer Research UK is a registered charity in England & Wales (Charity Number 1089464), a company limited by guarantee with (Company Registration number 4325234). It is the world’s largest independent cancer research organisation and was formed in February 2002 by the merger of The Cancer Research Campaign and the Imperial Cancer Research Fund. The Patron is The King and the most recent reported accounts (2022/23) show a reported revenue of £719 million.

Mathieson Consulting Ltd provide actuarial and expert witness services for solicitors in relation to pension matters upon divorce. It was founded in 2007 and has grown since with head office in Edgbaston, Birmingham. In 2019 the company became a subsidiary of Brewin Dolphin, now RBC Brewin Dolphin following the Royal Bank of Canada’s acquisition of Brewin Dolphin in 2022. The most recently published accounts (Y/E 31 October 2024) show a reported revenue of £2,085,948.

Services

The property is connected to mains services, including foul and surface water drainage, electric, gas, water and telecoms. The agents have not tested services; ingoing tenants are required to satisfy themselves in respect of availability and condition of the service provision to the subject property.

Planning and Development Considerations

Planning Policy is currently set out in the Adopted Hambleton Local Plan in so far as that might impact on any change of use, or variations/development options for the Property. This is in the process of being replaced by the emerging new North Yorkshire Local Plan.

The building is situated within a Conservation Area but the property is not listed. Prospective purchasers are advised to take their own independent planning advice should they wish to consider alternative uses on any part of the property, but it is the agents opinion that  generally speaking internal changes are likely to be acceptable, including change of use, so long as they are reasonable and can meet other statutory obligations, such as building regulations approvals. Use changes to residential on the 1^st and 2^nd floors of 140 High Street, for example, should be possible, particularly given historically the space was used as such, but incorporating suitable fire escapes and fabric upgrades will be key criteria to be aware of.

Guide Price

The Property is offered for sale with a guide price of ‘Offers in region £495,000’. This would generate a Net Initial Yield of some 8.2% after allowance for standard purchasers’ costs at 4.65%.

VAT

The property has not been elected for VAT, hence VAT will not be levied on the purchase price.

Legal Costs

Each party will pay their own legal costs.

All descriptions, dimensions, areas, reference to condition and other details are given in good faith and believed to be correct but intending purchasers / lessors should satisfy themselves as to the correctness.