A rare double-income mixed-use freehold in Stoke-on-Trent, combining a fully equipped ground-floor bar/pub with a fully licensed, fully occupied 6-bed HMO across the upper floors. The lot produces £68,400 per annum gross from day one: £31,200 from the commercial unit and £37,200 from the six HMO rooms, all let on an all-inclusive basis. Income starts the day completion happens, with no void to absorb and no works required to begin trading.
At £280,000 the lot is priced well below its combined market value. A mixed-use building is valued in two parts: the commercial unit on its income, the residential floors on local sold values. Capitalised at a cautious secondary-location yield, the bar/pub income alone is worth around £312,000 - more than the entire asking price - while the 2,583 sqft of residential space adds roughly £310,000 at local sold rates. That points to a combined market value near £622,000 against a £280,000 ask. On the figures below the property delivers a 17.9% net yield and a 45.8% return on capital employed after refinance.
This is an auction lot with the next sale on 25 June 2026 (guide £220,000 - £275,000), and the seller has confirmed they will consider serious pre-auction offers. The full tenancy schedule and title information are contained in the legal pack and shared with serious buyers at the appropriate stage.
Map shows the general ST6 area only. The precise address is shared with serious buyers at the appropriate stage. Tiles: OpenStreetMap contributors.
| Valuation component | Low | Avg | High |
|---|---|---|---|
| Residential - 2,583 sqft x area sold £/sqft | £279k (£108/sqft) | £310k (£120/sqft) | £356k (£138/sqft) |
| Commercial - £31,200 rent / yield | £284k (@11%) | £312k (@10%) | £347k (@9%) |
| Combined market value | £563k | £622k | £703k |
| Asking price | £280,000 |
Mixed-use valued in two parts and summed: the residential floors on local ST6 sold price-per-sqft (residential area only), the commercial unit on its rent capitalised at a market yield. The pub is a secondary-location leisure unit; the benchmark matrix yield is adjusted upward for secondary pitch and independent operator, giving a cautious 9% to 11% (10% central). Estimate only; a Red Book valuation would confirm.
Net yield shown on total capital in. Commercial let on FRI terms (tenant carries repairs and insurance), so no voids/maintenance deducted on the commercial income. SDLT at mixed-use (non-residential) rates - confirm treatment with solicitor. GDV held at purchase price for a conservative refinance; the combined market value above is materially higher. Pre-screen model, not investment advice.
HMO rooms let on an all-inclusive (bills included) basis. Commercial let on FRI terms. Full tenancy schedule available in the legal pack.