SIPP 13 – 319 Ashley Road Poole
The location is strong being only two doors away from the new Waitrose supermarket, it is a double fronted shop originally let to a small business 'Next Generation Trading', with personal guarantees from the proprietors.
However at their break option we were able to negotiate a new lease with 'The Salvation Army' for a 10 year term.
The purchase price was £230,000 and the rent is £12,000 per annum.
We put client's pension funds of £160,000 for the deposit and borrowed £95,000 from Nat West.
Although smaller than our usual purchases, this was thought to be in a good location with a new Waitrose so close and at a healthy yield.
The mortgage has reduced under the repayment terms. More importantly, an investor that put in £50,000 into the syndicate will receive an annual income of £4,687 (subject to inland revenue maxima) upon mortgage repayment, estimated to be in 7 years time. That is a rate of 9% per annum.
< Back