Summary - Cleveland Inn,37 Cleveland Street,Normanby,MIDDLESBROUGH,TS6 0LX TS6 0LX
1 bed 1 bath Commercial Property
Income-producing town-centre pub with secure tenancy and obvious lender/area risks.
Freehold pub let to The Cobblers and Cleveland Inn Ltd until May 2038
Current rent £44,113pa with concessionary rent £22,056pa
Annual uncapped RPI increases; five-yearly open market rent reviews
20 years remaining on lease—may deter lenders or restrict finance
Total area approx. 2,614 sq ft; enclosed rear customer area
Fixtures and fittings owned by tenant, not included in sale
EPC rating D-91; located in deprived area with higher crime levels
Offers invited in excess of £200,000 (NIY 10.9% on concession rent)
A freehold public house investment in Normanby, offered with an occupational 20-year lease to The Cobblers and Cleveland Inn Ltd. The property provides a substantial trading ground floor with two bar areas, cellar storage and first-floor manager’s accommodation, with total internal area about 2,614 sq ft and a small enclosed rear customer area. The sale is invited in excess of £200,000 reflecting a 10.9% NIY based on the current concessionary rent.
Income is secured but not without caveats: the lease runs until May 2038 and currently produces £44,113pa with a concession to £22,056pa. Rent terms include five-yearly open market reviews and annual uncapped RPI increases (except in review years). A £5,342 rent deposit is held; fixtures and fittings remain the tenant’s property and the business will be unaffected by the sale.
Location and physical condition are typical of a town-centre pub in a deprived, blue-collar area. The property sits on a 0.06 acre site on a terraced street close to local amenities (Tesco Express, Boots) and main road links to Middlesbrough. EPC rating D-91. Buyers should note higher local crime statistics and the area’s socio-economic profile when assessing operational risk and future value.
Material drawbacks that affect marketability and financing are clear: only 20 years remain on the lease, which may deter lenders or restrict mortgage availability; the tenant owns the fixtures & fittings; and the immediate locality is economically deprived, which may cap rental growth despite RPI clauses. The vendor envisages a TOGC sale (VAT treatment assumes a VAT-registered purchaser).
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