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Fantastic Opportunity – House for  sale Charlbury, OX7

Fantastic Opportunity – House for sale Charlbury, OX7


GUIDE PRICE: £490,000

The Old Bank House is as its name implies a former bank and attractive Grade ll Listed building that is constructed of coursed squared limestone rubble with timber lintels and a stone slate roof. Extensively refurbished in 2012, the attention to detail and quality of the renovation is evident throughout the property. The charm and character of The Old Bank House has been used to create an open plan shop area of approximately 1,484 sq ft which includes a kitchen and other facilities which is now used as a popular deli and cafe, whilst the flat above is approximately 1,220 sq ft with its own entrance, an open plan kitchen/dining area, sitting room, master bedroom with study/dressing room and en suite shower, second bedroom and separate family bathroom.

Outside the building enjoys an open courtyard accessible through the shop. In addition there is a flat roof above part of the shop. Subject to obtaining planning permission one could make a potentially beautiful outdoor terrace on the flat roof leading from the flat creating an additional outdoor area.

For more information or to view the property please contact:
John D Wood & Co. – Oxford Sales, OX2 on 01865 680554



Old Bank House Marketing / Merits & Demerits

Some merits and some demerits of the Old Bank House as an investment.

(This Memo is for the internal use of OHL Limited)

We offer no investment advice.  Prospective purchasers must do their own research.  We merely outline for our own internal position some – but not all – merits and demerits of The Old Bank House.

Prospective purchasers should evaluate some of the following:

  • The property is let at £21,000 pa for the next 6 ½ years. Is this a merit or a demerit?
    1. Merit – A reasonably secure income stream of £21,000 pa.
    2. Demerit – One cannot occupy the flat (or the shop).
  • The property has a total area of c. 2,661 sq ft. At the quoted price of £490,000 this yields a per square foot price of £184 ft.  On the face of it, this seems somewhat low.  On Right Move there is a lovely 4-bedroom cottage for £495,000 at £439 per sq ft.  While the 4-bedroom flat at the The Old Bank House is £184 per sq ft.  If one arrives at a uniform price distributed over the whole property.
  • However, one can argue the apparent discount reflects the wait of circa 6 ½ years: but given the income of £21,000 pa is the “wait” financially painful?  Given very low interest rates, and low mortgage rates, the “wait” does not seem that painful.  Indeed, the wait could even be beneficial if residential property prices rise over the 6 ½ year “wait” (but negative if prices fall).
  • The lease is long and extremely detailed, and was drafted by UK Solicitors. A copy of the lease can be reviewed on request.  One defect of the lease is that the Directors of the Charlbury Deli have not personally guaranteed the rent or any other aspect of the lease.  The reason for this is that the Charlbury Deli is a popular local business, and the owner of OHL Ltd, Director Dr Charles Lane a member of the Rothschild family, considered that it was inappropriate to ask these Directors to give guarantees.  Rental payments of the Charlbury Deli are we believe reasonably up to date – but there are concerns.


Merits of Charlbury as a town

Some property professional evaluation of The Old Bank House might state that tertiary shop investments command a yield of 8% pa of even higher.  Whilst a tertiary shop investment in a deprived area may command an high yield – even in excess of 10% pa.  However, are such comparables true comparables?

Firstly, The Old Bank House is in terms of value, predominantly a residential investment.  Normally residential investments in our view command a net yield of circa 3%-5%.  For example, the nearby Old Farm House (also owned within the business group) has a value of about £1.85million and a gross rental of about £39,000 (i.e. a gross yield of 2.1 %).  The net yield after expenses is doubtless much lower.

Secondly, Charlbury is anything but a deprived area.  This small town is near Oxford, on the main train line to Oxford (c. 15 mins) and on the main line to London (c. 90 mins). Charlbury is a delightful small town, but also an economically vibrant commuter town.   The Charlbury area boasts the Chipping Norton School and many amenities.

 Would one value the income at 5% pa and a reversion to vacant possession in circa 6 ½ years’ time more then an uncertain 10% plus yield in some deprived townships?  The Old Bank House has the great merit in that loss of the tenant will increase value, by virtue of gaining vacant market status of the 4-bed flat.

It is difficult to find a Charlbury property enjoying 4 bedrooms for less than £400,000, and the Old Bank House has a 4 bed flat and a shop.

In the context, the price of the whole building at £490,000 for 2,600 sq ft seems not unreasonable.


Vacant Posession / Lease

On a subject to contract basis and there is no warranty but it is very likely a purchaser could buy the property with vacant possession of the residential element.

It is also possible a potential purchaser could buy the property with vacant possession of the whole.

It is also possible a potential purchaser could enter in a joint venture with the current tenant Charlbury Deli.   For further information on any joint venture we could put a prospective purchaser in touch with the Charlbury Deli.

However, at present the property is subject to the lease dated 8th May 2017, which lease is available for inspection.  In our view the lease ends 7 May 2027 but you shouldn’t place reliance on this statement and instead should refer to your professional advisors.  In our view the lease falls outside of the relevant section of the 1954 Act.



Retention of The Old Bank House by OHL Ltd as an investment has much to recommend it.  However, in the event of the death of Dr Charles Lane (owner of OHL Ltd), UK inheritance tax at 40% might well be payable.  Perhaps another and younger family member should buy The Old Bank House.

We offer no investment advice.  Prospective purchasers must do their own research.  We merely outline for our own internal position some – but not all – merits and demerits of The Old Bank House.

As previously stated all the above is Subject to Contract