PropLens · 37A Lochburn Road, Glasgow G20

Offer range · Income hold (vacant, refurb-to-let)

£5,000

£10,000

Lower end · 20% Upper end · 15%

Asking £115,000 sits significantly above the upper end of the methodology range. The deal does not pencil at conventional finance once refurb-to-let capex is funded from equity.

Stress DSCR at 10% is Marginal (1.27×). Headroom on rate moves is thin.

Refurb-to-let capex (£84,650) exceeds the residual purchase price under conventional finance: the project is equity-heavy and the bid is anchored close to zero.

Income basis Vacant. ERV from comparables, less landlord-paid insurance. Year 1 effective cash-on-cash will be lower depending on lease-up speed.

£11,512 − £2,400 → NOI £9,112

Offer explorer

Your offer

£10,000

Equity required

£0

Lender lends £71,500 against VP £110,000

Cash-on-cash

DSCR @ 8%

1.59×

Same at any price

Net cash flow

£3,392

NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 1.59× Viable

Stress DSCR @ 10% rate 1.27× Viable

Debt Yield (NOI / Loan) 12.7% Strong

Yield on Cost 0% Viable

Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £9,112 · VP £110,000 (lender basis)

Thesis

A vacant 1,992 sqft industrial unit (NIA c. 1,693 sqft) in Maryhill, North Glasgow, listed at £115,000 (57/sqft GIA). The unit has 4.37m eaves, roller-shutter access, and integrated office/WC, making it a conventional small-box industrial product. The methodology anchors the bid on stabilised NOI after refurb-to-let capex; on £6.80/sqft Fair-condition rent and an 8.75% ARY, the range sits at the low end of single digits, with the asking price sitting well above. The headline observation is that £84,650 of refurb-to-let capex (1,693 sqft × £50/sqft) sits between purchase and stabilised income, all funded from equity under standard 65% LTV terms. Stress DSCR is Marginal at 10%, indicating limited rate-move headroom. SSAS purchase tightens the range further as LTV drops to 50%.

What's wrong with it

Vacant on acquisition. 12-month letting void assumed for a non-prime industrial location.
Refurb-to-let capex (£84,650) is roughly three quarters of the asking price; the all-in cost basis is materially above stabilised value.
Maryhill industrial demand is concentrated in trade and small-occupier markets; rent-tone weaker than prime Clyde Gateway or East Investment Park stock.

What's right with it

4.37m eaves and roller shutter make the unit immediately functional for trade, last-mile, or maker occupiers.
Maryhill Road corridor benefits from arterial connectivity to the city centre and ongoing residential regeneration around the canal.
SSAS-eligible commercial: tax-free income and gains within a pension if structured for that route.

Risks

Letting void extending beyond 12 months erodes Year 1 cash flow further.
Refurb-to-let cost overrun on a 1,693 sqft unit could push all-in cost decisively above stabilised value.
Local industrial rent tone may not support £6.80/sqft if occupier demand is weighted to sub-£5/sqft basic-shell tenants.

DD gaps

EPC band, rateable value, and any historic letting evidence on the unit.
Title burdens, servitudes, vehicular access rights over adjoining ground.
Condition of roof, M&E, three-phase power, and any asbestos register from prior occupation.

Considerations

Glasgow City Council planning environment is generally permissive for E-class (where applicable) and continuing industrial use within the existing use class.
VAT election status (vendor) affects effective purchase price and ongoing rent recovery.
Within Maryhill regeneration corridor: future-use optionality (workshop, maker space, trade counter) is broader than for prime industrial stock.

SSAS variant (50% LTV) At 50% LTV the loan reduces to £55,000 and the range tightens to £0 – £0. Less leverage, more equity at the same hurdle. SSAS retains income and capital gains within the pension at 0% tax. The commercial use class is SSAS-eligible.

Property & Valuation

Facts, condition, comparables, valuation stack, and purchase-cost schedule for due-diligence reference.

Facts

Address	37A Lochburn Road, Glasgow G20
Asking	£115,000
Type	Industrial (small box, vacant)
GIA	1,992 sqft
NIA (×0.85)	1,693 sqft
£/sqft GIA	£58
Eaves	4.37 m
Access	Roller shutter, integrated office/WC
Tenure	Not stated (assumed heritable)
Agent	DM Hall
Portal	Zoopla
Condition	Fair (default)

Missing: EPC band, rateable value, tenure detail, planning history, three-phase power confirmation.

Photos

Physical assessment

Exterior: terraced industrial unit on Lochburn Road, Maryhill. Single roller-shutter front access.
Interior: integrated office and WC. 4.37m eaves provide racking and mezzanine headroom.
Layout efficiency: single-bay terraced format; one access point limits dock options.
Surroundings: Maryhill residential/industrial mix; arterial connectivity to city centre via Maryhill Road.
Refurb-to-let scope assumed: paint, lighting, basic M&E refresh, signage. Standard £50/sqft.

Per-unit income

Unit	NIA (sqft)	£/sqft	Gross rent
Industrial unit (vacant, ERV)	1,693	£6.80	£11,512
Less landlord insurance			(£2,400)
NOI (stabilised, single-let)			£9,112

ERV base £8.00/sqft for Glasgow weak-secondary industrial × 0.85 condition adjustment (Fair) = £6.80/sqft. Cross-checked against Ryden 2025 Glasgow industrial averages (£7.69/sqft) and Westfield IE Cumbernauld multi-let comparable (10.17% yield on £40+/sqft mixed quality).

Yield selection

Glasgow industrial secondary tone 6-8% per Ryden 2025 transactions. Maryhill classifies as weak-secondary location. Midpoint 7% + 175 bps sub-£500k lot-size premium = 8.75% ARY. Term Yield (n/a, vacant). Reversion Yield = 8.75%.

Sensitivity	Yield	Capitalised rent
−50 bps	8.25%	£139,539
Base	8.75%	£131,566
+50 bps	9.25%	£124,454

Valuation stack

Basis	Value	Notes
Rack Rent (cap)	£130,000	ERV £11,512 ÷ 8.75%
VP (MV3, lender basis)	£110,000	Rack less 12mo void, 6mo rent-free, 10% reletting, £4,200 holding
T&R	n/a	100% vacant
MV1 (stabilised)	£105,000	NOI £9,112 ÷ 8.75%
Asking	£115,000	5% above VP

Lender basis: VP (vacant). VP feeds the loan calc at 65% LTV: £71,500 loan.

Acquisition benchmark

Glasgow secondary commercial benchmarks (Ryden / Scoring-data): conventional industrial £80-150/sqft indicative CV. Asking £58/sqft GIA sits at the lower end of that range, reflecting vacant possession and Maryhill (weak-secondary) location.

Purchase costs

Line	Amount
LBTT (Scotland non-residential, £115,000)	£0
Legal fees	£4,500
Disbursements	£650
Broker fee (1%)	£1,150
Lender arrangement (2% of 65% LTV loan)	£1,430
Lender legal	£2,500
Surveys	£2,000
Total purchase costs	£12,230
Refurb to let (1 vacant unit × £50/sqft × 1,693 sqft)	£84,650
All-in (purchase + costs + refurb)	£211,880

Strategy & Appraisal

Value-add angles, holding-structure recommendation, and supporting analyses for the bid thesis.

Value-add angles

Discount potential Strong

Asking £58/sqft GIA sits below typical Glasgow secondary industrial (£80-150/sqft). The discount reflects vacant possession and refurb requirement. The methodology range (effectively single digits in £k under conventional finance) indicates the residual after refurb is the binding constraint, not the headline price.

Max purchase at upper hurdle: £10,000. Key risk: agent and vendor unlikely to entertain a discount of this magnitude; creative deal structuring required.

Alternative uses Moderate

4.37m eaves, roller shutter, and office/WC fit-out support workshop, maker space, last-mile logistics, or trade counter. Maryhill creative and residential proximity supports gym (Class 11 in Scotland) or studio occupiers at £8-12/sqft licence rates, materially above £6.80/sqft conventional industrial.

Stabilised gross at £10/sqft licence: £16,930/yr. Key risk: licence/operating model requires active management and is not immediately financeable as conventional commercial.

Vendor finance Moderate

Vacant industrial in a secondary location can be difficult to finance conventionally. A structured deal (deposit plus vendor loan for 3-5 years at a fixed rate) improves cash flow during the void/refurb period and avoids the bridging-rate stack. Worth raising at offer stage, particularly if the vendor is an estate or retiring owner-occupier.

Indicative effect: defers £33,000 of finance for 36 months. Key risk: agent-led sale less amenable than direct-to-vendor.

SSAS compatibility Strong

Class 6 industrial is SSAS-eligible. At £115k headline and 50% LTV, the SSAS fund requires ~£57.5k plus costs and refurb capex (so c. £140k of fund liquidity in total). Once held, income and capital gains are taxed at 0% within the pension. The SSAS range (£0 – £0) is tighter than the leveraged range because LTV drops to 50%.

Tax efficiency: 0% on rent and gains. Key risk: SSAS borrowing limit and refurb funding constrain bid further.

Lease purchase / option Weak

A small option fee (1-3% of price) buys time to arrange SSAS funding or test rent assumptions before committing. Not the primary lever on this deal as the binding constraint is refurb capex versus stabilised value, not timing.

Option fee at 2%: £2,300. Key risk: agent likely to require unconditional offer.

Holding structure

SSAS-eligible commercial. The 50% LTV constraint produces a tighter range than leveraged purchase, but the income within the pension is tax-free. If the investor has SSAS liquidity, this is the cleaner structure. If not, a company (SPV) at 65% LTV is the alternative; personal ownership is not advised given the trading-style refurb and let dynamic.

Sources

Ryden Scottish Property Review 2025 (industrial yields and rents).
Edozo Conventional Rates database (Glasgow commercial £/sqft medians).
Revenue Scotland LBTT non-residential bands (current as of 2026-05).
Glasgow City Council Local Development Plan (planning context).

Jurisdiction

Scotland