3 Kingsknowe Park, Edinburgh, City of Edinburgh, EH14 2JQ
Asking £165,000 sits significantly above the upper end (~94% above).
Offer explorer
Lender lens · five ratios
65% LTV · 8% IO · 7% costs · NOI £9,600 · VP £85,000 (lender basis)
The property is a 678 sqft (576 sqft NIA) ground and first floor office unit on a peripheral Edinburgh parade, currently let producing £12,000 per annum. The vendor presents the deal at a 7.14% net initial yield against the asking price, but lender basis on a unknown-term tenancy is VP, not the implied investment-yield value. On VP, the deal pencils in the £75k–£85k band on a 65% LTV mortgage at 8% interest only, with the SSAS variant landing slightly lower. Asking sits roughly 94% above the methodology range. The 100% rates relief qualification supports tenant retention at low operating cost.
- Lease term, break clauses, and tenant covenant are unstated in the listing.
- Stated NIY 7.14% uses gross rent against asking price, not NOI against a defensible value.
- EPC rating, rateable value, and service charge position not disclosed.
- Tenanted at the point of sale with passing rent close to local office £/sqft evidence.
- Sub-£500k lot size sits within SSAS and small-investor lending appetite.
- 100% business rates relief eligibility removes a meaningful operating-cost line for the tenant.
- Tenancy may be a year-to-year or short-licence rather than a 5+yr FRI lease, limiting lender appetite.
- Edinburgh peripheral secondary office yields have widened materially since 2022, so the bid anchor is below the vendor's implied price.
- Vacant possession recovery costs (void, rent-free, reletting fees) consume meaningful capital if the tenant departs.
- Lease agreement: term, rent review, break clauses, repair obligations, VAT election status.
- Tenant covenant: trading history, accounts, sector of operation.
- EPC, rateable value, service charge schedule, and any historic planning consents on the building.
- Peripheral location 4 miles from city centre, footfall and substitution risk for a tuition-use tenant.
- Two-storey unit with shared parade frontage, fire-separation and landlord-common-parts obligations to verify.
- Asking price implies a yield that prices the property as a conventional lease investment, the lease evidence may not support that framing.
SSAS variant (50% LTV): Range £70,000 – £80,000. Less leverage means more equity required. Property is Class 4 office, eligible for SSAS purchase. Income and gains within the SSAS are 0% tax.