Here’s the link: http://www.eatongreen.com/lettings-property/perry-vale-forest-hill-se23-8252.htm - I’d been looking for it online anyway and then stumbled across this thread…
Quoting terms are £13k pa for a FRI (full repairing & insuring) lease. I make it c.336 sq ft judging by the rates list
How does that compare with other stuff around SE23? Well, a few comparables on the market: (caveat, rough and ready and I’m not analysing Zone A rates or use class adjustments):
- This is a bigger unit (939 sq ft including basement storage) in an arguably better pitch on Dartmouth Rd quoting £17.5k pa.
- This is a slightly smaller unit at c.300 sq ft but possibly a better configuration and directly fronting the road, again in a better pitch opposite the back entrance of Forest Hill station. Quoting c.£8k pa.
Interestingly the Valuation Office, who I think last assessed the rateable values in 2017, put a rateable value -(read their opinion of the rental value from which they calculate your rates / tax) at £7,300 per annum (see link above) and I doubt very much that rents have gone up from 2017.
IMVHO then, the old LoLo’s does look a bit on the expensive side and I hope that anyone looking at this properly would take good advice and consider a decent rent free incentive, carve outs from the FRI lease (technically you can’t really take a proper FRI lease over part of a building), a good “schedule of condition” to limit your repairing liability and on a flexible lease with a suitable break clause/s.
The sceptic in me does wonder, given (i) how long the unit has been vacant for, (ii) the fact that the LL will be paying c.£3.5k pa in empty unit rates to the council (iii) how difficult it is to find this listing on line etc, (iv) the seemingly high quoting rent, whether the landlord is intentionally obstructing the marketing in order to try to demonstrate (incorrectly in my opinion) a lack of letting interest in order to support a renewed planning application for change of use to resi.
I walk past this shop pretty regularly on the way to the station and I also think this is a good location for another small bakery / somewhere to get a decent coffee (sorry Big Breakfast, I love your fry ups though) at a sustainable rent. I wouldn’t want to see this turned into resi or continue to be boarded up.
The retail market is not dead - rents are just too high and need re-basing!!