Rudyard Street, North Shields
Project Gallery
Project Overview
This mixed-use property comprised a ground floor shop and two flats held under one freehold title. The property was purchased at auction for £68,000 plus auction fees. As the building was classified as mixed-use, it was subject to commercial stamp duty rates, resulting in £0 Stamp Duty Land Tax due under the £100,000 threshold at the time of purchase. The property was subsequently sold directly to a HMO developer for £105,000.
Financial Breakdown
Investment Details
- Purchase Price: £68,000
- Auction Fees: Applicable
- Total Investment: £68,000 + Auction Fees
- Total Investment + SDLT + Legal Fees ± Auction Fees
- Sale Price: £105,000
Exit Performance
- Exit Strategy: Direct sale to HMO developer
- Capital Uplift Achieved: Significant profit on resale
Strategy Used
- Auction purchase (mixed-use asset)
- Commercial SDLT advantage
- Value-add repositioning
- Direct-to-developer exit
Results & Outcome
By leveraging the mixed-use classification and securing the property below market value, this project achieved a strong capital uplift through a direct resale strategy. The transaction demonstrates the benefits of understanding commercial stamp duty rules and identifying alternative exit routes.
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