Island Place, Gould Road, Salcombe, Devon, TQ8 8FN

Guide Price* : £40,000

Prime freehold mixed use ground rent investment opportunity

  • Recently completed high specification development in a prime Salcombe location
  • The property comprises 6 high end residential units over a ground floor commercial convenience store unit, let to the Co-Op
  • Each of the 7 units has been granted a 999 year lease subject to an initial ground rent of £250 per annum
  • Current total ground rent income of £1,750 per annum, benefiting from 10 yearly RPI index linked review provisions
  • Clean Management Company structure removing all landlord responsibility in respect of building management

Description

Island Place is a unique high end development benefiting from a prime and prominent position in relation Salcombe town centre and waterfront.

The property comprises a ground floor convenience retail unit, positioned below a brand new two storey residential development comprising 6 high quality houses. The exclusive
development has been designed and constructed in line with the coastal setting, using local materials to provide superior specification accommodation in an unrivalled position.

Situated on Gould Road on the north west side of the town centre, in immediate proximity of the waterfront and subsequent amenities. The property benefits from heavy pedestrian flow by virtue of immediate proximity to the towns only short stay and long stay parking provisions; Shadycombe Car Park directly opposite and The Creek Car Park immediately adjacent.

Location

Salcombe is an extremely affluent and popular coastal town in the South Hams district of Devon, south west England. The town lies on the banks of the Salcombe Estuary and it widely regarded as one of the prettiest towns in South Devon and one of the UK’s most desirable waterside destinations, known for its exceptional coastal views and position within an Area of Outstanding National Beauty (AONB).

The town’s extensive waterfront and naturally sheltered harbour formed by the estuary have made the location hugely successful as a maritime haven, with a thriving economy centred around pleasure sailing and yachting. The town is a major tourism destination, with a peak season population extending to nearly 25,000 and approximately 39% of all households being classified as second or holiday homes.

The local economy caters for affluent clientele, with a range of boutique retailers, art galleries, nautical associated businesses and an abundance of places to eat and drink. The town is accessed via the A381, which in turn links with the A38, providing connectivity to Plymouth and Cornwall in the west and the M5 at Junction 31 at Exeter in the east.

Tenure

Freehold

Tenancy

Each of the 6 residential units and the commercial unit have been granted a 999 year interest from 1 January 2018, each paying an initial ground rent of £250 per annum and providing a total initial ground rent of £1,750 per annum. The rent is to be reviewed on 1 January 2028 and every 10 years thereafter, in line with RPI.

The Freehold interest has granted an Overriding Lease (999 years) of the property in its entirety to the long leasehold tenants' Management Company.

The Overriding Lease imposes an obligation on the Management Company to carry out all of the Landlord’s obligations contained in the individual long leasehold interests e.g. with regard to building insurance, repair and maintenance.

Under the Overriding Lease the Management Company is required to pay an annual rent to the Freeholder. This is expressed to be the aggregate of the yearly sums reserved in the residential and commercial leases.

VAT

The property is elected for VAT

Vendor's solicitor

Meade King Solicitors
Catherine Ainley

caa@meadeking.co.uk

* Generally speaking Guide Prices are provided as an indication of each seller's minimum expectation. They are not necessarily figures which a property will sell for and may change at any time prior to the auction. Virtually every property will be offered subject to a Reserve (a figure below which the Auctioneer cannot sell the property during the auction) which we expect will be set within the Guide Range or no more than 10% above a single figure Guide.

Administration Fee The successful purchaser will be required to pay the auctioneers administration fee of £990 inclusive of VAT on purchases of £20,000 and above and £240 inclusive of VAT for purchases below £20,000. Other additional costs/fees may apply - Click here.

The auction has not yet started
Minimum Opening Bid

£30,000


Bidding Opens On
27th Mar 2019 12:00
End Date

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The successful purchaser will be required to pay the auctioneers administration fee of £990 inclusive of VAT on purchases of £20,000 and above and £240 inclusive of VAT for purchases below £20,000. Other additional costs/fees may apply - Click here.


Vendors Solicitor

Catherine Ainley

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