Apr 21, 2017
In the heart of prime central London, one of the most prestigious neighbourhoods has a lot to offer. Mayfair not only provides residents with beautiful garden squares, historic architecture, iconic landmarks, and fantastic transport connections, it also creates a diverse and exciting living environment. With the resident profile regularly changing and the typical house purchaser getting younger by the day, the property market needs to evolve as quickly as the community, and it lives up to this expectation splendidly. Mayfair is home to some of the most luxurious and expensive properties in prime central London and new homes entering the market strive to give the best in designer interiors and state of the art technology in order to maintain the attraction to younger and multicultural residents to the area.
It was not too long ago that property prices in Mayfair and the wider West End area were towering so high above the rest of London that Peter Wetherell, CEO of Wetherell estate agents, predicted that houses entering the market priced at £1 million or under would soon be a thing of the past and eventually, go extinct. At the time, less than five percent of properties sold on the market in the district were valued below £1 million, and none were priced for less than £750,000. With 41 percent of homes selling for between £1 million and £2 million in 2016, 48 percent between £2 million and £10 million and the remaining 11 percent priced at over £10 million, it seemed only natural that this prediction would soon come about and stand true. However, a rare opportunity has broken through the mould, which goes against this prediction and breaks all the trends in the real estate market of late.
THE £500,000 PROPERTY
Ideally located near Claridges, on Davies Street, a rare two bedroom flat has entered the real estate market in Mayfair and is labelled the cheapest property in Mayfair and the wider West End, at £500,000. Although £500,000 is still half a million pounds and a lot of money, compared to the £4.6 million average price for a house and £2,800,000 average price for a two bedroom flat, this is an absolute steal.
At 956 sq ft, this spacious home is situated in Erskine House, built between 1824 and 1827 and converted in 2003 by Grosvenor into 11 residential flats. The late Georgian houses retain their traditional exterior and were designed to provide private communal gardens and smart foyers for the residents of the apartments.
The modern three-floor family home provides a large open plan living space and a separate spacious kitchen. Bedroom two is also located on this floor and so could be used as an additional reception room or home office. Both of the bedrooms boast built-in wardrobes, and the Master has its own floor and a stylish en-suite bathroom. The basement floor supplies ample storage space, ideal for storing luggage, clothing, and other household equipment.
Although the lease on this property has only 12 years remaining, the £500,000 purchase price makes that £868 per week, which is still a £432 weekly saving on the £1,300 weekly average on a two bedroom apartment. This calculation equates to a saving of £269,568 over the 12 years on the purchase price, and it is estimated to cost around £150,000 to extend the lease to a standard Grosvenor 20 year lease, so it in no way affects how much of a bargain this opportunity presents.
Peter Wetherell, said: “This flat has forced me to eat my words and to retract a bold claim I made just last year. Last year we forecasted the extinction of the sub-£1 million flat in Mayfair. Well, this apartment clearly proves that mega-bargains can still be snapped up in Mayfair."
However, he goes on to reiterate the fact that "Like the Dodo, sub-£1 million flats are still exceedingly rare in Mayfair, so we expect it to sell extremely quickly.”