Regent Street is the main retail trading street in Shanklin which is a popular seaside town situated on the south east corner of the Isle of Wight. This substantial building was originally constructed as retail units on the ground floor with commercial offices above. However, the offices were converted into six residential apartments approximately 10 years ago, all of which have been sold under the terms of long leasehold arrangements.
The freeholder benefits from a ground rent income from each of the six flats with four of the ground rents subject to five yearly reviews and the other two subject to 10- yearly reviews. Additionally, the freeholder is responsible for insurance, management and maintenance of the building which is recovered from the leaseholders by way of a service charge.
The three retail units on the ground floor are all let under the terms of commercial leases as detailed below.
Ground Floor
Commercial
29 Regent Street
Let under the terms of a commercial lease for the term of five years from 1st August 2018 at a current rental of £8,500 per annum.
29A Regent Street
Let under the terms of a commercial lease for the term of six years from 31st July 2015 at a current rental of £3,000 per annum.
Auctioneers Note 1
Heads of Terms have been agreed for a new six-year lease for 29a Regent Street at a rent of £5,300 per annum. At the time of publication the new lease has yet to be completed but it is hoped that this may be achieved prior to the auction. Prospective purchasers should refer to the legal documentation for further information.
30 Regent Street
Let under the terms of a commercial lease for the term of five years from 16th May 2019 at a current rental of £6,540 per annum.
First and Second Floor Residential
Flats 1 & 2, 27 Regent Street and Flats 1 & 2, 31 Regent Street
Sold under the terms of 125- year leases from 1st January 2012 at a current ground rent of £224.45 per flat, subject to RPI Linked five-yearly reviews, which are now due.
Flats 3 & 4, 31 Regent Street
Sold under the terms of 125- year leases from 1st January 2012 at a current ground rent of £200 per annum, subject to RPI Linked 10-yearly reviews, which are now due.
Outside
There is a yard and car park to the rear. Six of the car parking spaces are allocated to the residential element, but the remainder offer scope and potential for income production.
Auctioneer's Note 2
Section 5B Notices under the Landlord and Tenant Act 1987 (as amended) have been served and the leaseholders have not reserved their rights under this legislation.