An apartment just down the road from Claridge’s is causing a right stir after hitting the market at £500k.
The 956 square foot two-bed on Davies Street forms the lower part of an 11-unit scheme completed by Grosvenor in 2003, and the sub-£1m price has got everyone just a little bit excited.
Property pros will have gathered by now that it’s on a short lease, and sure enough there’s only 12 years to go, but agents Wetherell point out that it still merits “mega-bargain” status – if you view it as a long-term rental.
£500k over 12 years works out at £868 per week, says the team, which stacks up well against the average rent for a two-bed apartment in Mayfair (£1,300 per week); there’s some purchasing costs to consider of course, along with a combined service charge and ground rent of nearly £6k pa, but Wetherell are confident they’ve priced it competitively. Whatsmore, they estimate it would cost “just” £150k to extend the lease into a standard Grosvenor 20-year version.
At £500k, it certainly stands out amongst the listings. The current average price of a home in Mayfair is £4.66m, with a typical two-bed priced at £2.8m. Last year, less than 5% of homes sold in Mayfair were priced below seven-figures and none were priced below £750k. The majority of sales (49%) during 2016 were priced between £2m and £10m.
Peter Wetherell, Chief Executive of Wetherell: “This flat has forced me to “eat my words” and to retract a bold claim I made just last year. Last year we forecast the extinction of the sub-£1 million flat in Mayfair. Well this flat clearly proves that mega-bargains can still be snapped up in Mayfair. Like the Dodo, sub-£1million flats are still extremely rare in Mayfair so we expect it to sell extremely quickly.”
James McManus, Managing Director of Wetherell: “This apartment would be ideal as a university or college student pad for a young student from a wealthy family from the Middle East, Africa or Asia. Many flats like this one get snapped up by overseas families who want a smart and safe base for their student offspring whilst they study in London. This apartment would be perfect for a student – the spare room could be for a colleague on their course or for family who visit them, and the length of the lease allows for them to study A-level, degree and Masters in London with a few years remaining for them afterwards to launch them into London society post graduation. It would also allow the family to extend the lease and sell the property afterwards or keep it as a rental investment. At this below market price the property also falls below the stamp duty and other main tax levies for higher priced homes so the purchase would also be more tax efficient for the buyer.”
Wetherell on 020 7529 5566 or wetherell.co.uk