Freehold Block of 6 Flats - Single Corporate FRI Lease

Workington, CA14 - Cumberland, Lake District
Freehold Let to Serco - FRI to 2031 21% Below Area Average £/sqft 10.88% Net Yield 37.4% ROCE
£345,000
Pre-auction price secured by Eldi
£345k
Asking Price
Freehold block of 6 flats
£89/sqft
Asking £/sqft
21% below area average
£42,300
Annual Income
£3,525 pcm - net on FRI lease
£588/mo
Per Unit Avg
Across 6 flats
10.88%
Net Yield
On total capital in, before tax
37.4%
ROCE
After refinance at 75% LTV
The brief

A freehold block of 6 self-contained flats in the historic market town of Workington, on the edge of the Lake District. The entire block is let on a single Fully Repairing and Insuring (FRI) lease to Serco's asylum-accommodation vehicle, which operates the building under the Home Office Asylum Accommodation and Support Contract (AASC). The lease runs for 6 years and 11 months, from June 2024 to May 2031, with around 4 years and 1 month still unexpired. Under the FRI terms the tenant carries maintenance, bills and insurance, so the landlord receives £42,300 net per annum with effectively no running costs and nothing to manage - a genuinely hands-off asset producing £42,300 net from completion, underpinned by a Home Office accommodation contract.

The block was fully renovated and furnished before hand-over in 2024: every flat was rewired with a brand new fire and intercom system, new kitchens and bathrooms, and fresh flooring and decoration throughout, with industrial laminate in the communal areas. All furniture and appliances are included in the sale. The building carries EPC ratings of C and D across the six units, comfortably clear of the minimum E standard.

At £345,000 the entry sits around £89 per square foot against an area average of £113, roughly 21% below market on verified local sold evidence - built-in equity of close to £93,000 from day one. On a refinance against the area-average valuation of £437,875, a 75% facility releases the majority of the capital and the deal returns a Return On Capital Employed of around 37%. A rare combination of secure corporate income, below-market entry and a strong cash-out position.

Investment Highlights
Day-One Income£42,300 net per annum from completion. All 6 flats sit under one FRI lease to Serco's Home Office AASC vehicle - tenant covers maintenance, bills and insurance, with zero void and nothing to manage.
Below-Market EntryAt £89/sqft the asking price sits around 21% below the area average of £113/sqft, on 20 verified local transactions. Close to £93,000 of built-in equity from day one.
37.4% Net ROCEAfter refinance at 75% LTV against the £437,875 area-average value, around £60,000 stays in the deal generating circa £22,600 net per annum.
Property overview
TypeFreehold block of 6 flats
TenureFreehold
Configuration6 self-contained flats (1 and 2 bed)
Total floor area360 sqm / 3,875 sqft
ConditionFully refurbished and furnished 2024
EPC statusC and D across all units
TenancySingle FRI lease to Serco (AASC)
Lease termTo May 2031 - approx 5 yrs unexpired
Deal details
Deal typeHands-off corporate FRI income
Asking price (pre-auction, secured by Eldi)£345,000
Area avg valuation£437,875 (£113/sqft)
Asking vs area avg21% below average
Net income£42,300 pa (FRI - net)
AvailabilityAvailable - pre-auction offers considered
Data packaged18 June 2026
Location - Workington, CA14

Map centred on the Workington (CA14) town area, not the exact property. The precise address is shared with serious buyers at the appropriate stage. Tiles: OpenStreetMap contributors.

£/sqft valuation - CA14 area (20 transactions)
£0 £200k £400k £600k £89/sqft Asking £345,000 £94/sqft Area Low £364,250 £113/sqft Area Avg £437,875 £142/sqft Area High £550,250

Based on 20 verified local transactions within a 0.16 mile radius, December 2024 to December 2025. Subject size: 3,875 sqft. Asking price equates to £89/sqft against an £113/sqft area average - approximately 21% below market.

EPC ratings (6 flats)
Block rating rangeC  to  D
Minimum E standardComfortably met
Upgrade required to letNone

All 6 flats certified C or D, fully renovated in 2024 with new systems throughout. Individual certificates available in the full information pack.

Rental analysis
Configuration6 flats, one FRI lease
Net annual (FRI)£42,300 pa
Net monthly£3,525 pcm
Average per flat£588/mo
Landlord running costsCovered by tenant (FRI)
Net yield10.88%
ROCE after refinance37.4%

Income is net under a Fully Repairing and Insuring lease - maintenance, bills and insurance are carried by the tenant.

Area valuation evidence
Basis£/sqftImplied valueNote
Asking£89£345,000Entry price
Area low (70th pct)£94£364,250Below average band
Area average (18 mths)£113£437,875Central market value
Area high (70th pct)£142£550,250Upper band

Bands derived from 20 verified local transactions, 0.16 mile radius, December 2024 to December 2025. Like-for-like flat and block evidence. Individual comparable addresses are provided in the full information pack.

Deal Numbers
Purchase Costs
Purchase price£345,000
SDLT (commercial, 6+ units)£6,750
Legal fees£2,500
Sourcing fee (4%)£13,800
Buyer's premium (5% + VAT)£20,700
Total Capital In£388,750
Cash Purchase
Gross annual income£42,300
FRI lease - tenant covers costs(£0)
Maintenance, bills, insuranceTenant
Net Annual Income£42,300
Net Yield10.88%
After Refinance (75% LTV, 6%)
GDV (area average)£437,875
Loan (75% LTV)£328,406
Annual interest (6%)(£19,704)
Money left in deal£60,344
Net After Finance£22,596 pa
ROCE37.4%
Interested in this deal?
Your Contact
Eldi Levi Hevroni
Buckswell Holdings
Call
020 7070 8343
Mon-Fri 9am-5pm
Email
eldi@buckswell.co.uk
buckswell.co.uk
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