15, Bloomgate, Clydesdale Inn, Lanark, ML11 9ET
Asking £241,000 sits below the methodology income-lens range (£285,000 lower, £305,000 upper). On the contracted rent the deal pencils above conventional hurdles. The gap implies either (a) tenant covenant or trading-evidence concerns priced into the vendor's expectation, or (b) a hospitality-sector discount applied because the buyer pool for single-tenant pubs is thin. Covenant DD on 1969MR Ltd is load-bearing.
Offer explorer
Lender lens · five ratios
65% LTV · 8% IO · 7% costs · NOI £33,600 · VP £345,000 (lender basis) · Refurb-to-let ()
Town-centre tenanted public house in Lanark with a B-rated established operator on a lease running to November 2033. Contracted rent of £36,000 rises to £40,000 from 2028, giving a 14.9% gross initial yield off the £241,000 asking. The tenant is a private SME, so the lender lens treats this as conventional only with caution: a building survey and rent-deposit / personal guarantee position are load-bearing for finance. Lanark is a weak-secondary Scottish market town; the licensed sector trades on the Profits Method, so resale will be driven by trading evidence rather than £/sqft.
- Single-tenant SME covenant; no covenant data disclosed, so default risk drives the yield wider than a national leisure brand.
- No EPC, RV, schedule of condition, or rent-deposit detail in the listing pack.
- 11,000 sqft is large for a market-town pub; if the tenant goes back the building is hard to relet at trade rent without an operator already lined up.
- Contracted lease to November 2033 with a stepped rent uplift to £40,000 from 2028 (11% increase).
- Subject business The Clydesdale Inn carries 4.1 stars across 637 Google reviews, evidence of an established trading operation.
- Asking sits below the methodology income-lens range at conventional finance, so the deal pencils strongly if covenant DD clears.
- Tenant covenant: 1969MR Ltd is an unrated SME; loss-of-tenant event leaves a single-use 11,000 sqft pub to re-let in a weak secondary market.
- Hospitality sector exposure to wage, energy and duty cost shocks affecting tenant's ability to sustain rent through to 2033.
- Pub repurposing post-vacancy is constrained by listed status (probable on Bloomgate) and licensing-led valuation methodology.
- Full lease document including FRI vs IRI repairing position, rent-review mechanism, break options, and any guarantees.
- Tenant accounts for 1969MR Ltd plus trading evidence (turnover, gross margin) to test rent cover.
- Schedule of condition, EPC certificate, RV confirmation (Scottish Assessors Association), and listed-building status.
- Bloomgate is within Lanark conservation area; building is likely listed and external alteration is consented.
- VAT election status on the property unknown; election affects buyer cash flow on purchase.
- Alternative-use planning is constrained: a vacant 11,000 sqft pub in a market-town conservation area has narrow change-of-use options.
SSAS purchase (50% LTV): £255,000 to £285,000 at the same cash-on-cash hurdles. Pub is Class 11 leisure, eligible for pension purchase, with rent received tax-free inside SSAS.
Quick facts
- Asking
- £241,000
- Size (GIA)
- 11,000 sqft
- £/sqft asking
- £22
- Tenure
- Heritable
- Condition
- Fair
- RV
- Undisclosed (DD)
- Lease
- To 15 Nov 2033
- Portal
- Novaloca
- Agent
- Jeremy Griffith
Headline numbers
- Range
- £285,000 – £305,000
- Discount needed
- +26.6% to upper
- NOI
- £33,600
- Refurb
- £0
- All-in @ upper
- £326,350
- DSCR @ 8%
- 1.87×
- T&R value
- £345,000
- Rack rent
- £325,000
