Beautiful Yet Derelict London Home Available For £2.5m
June 16, 2017 by CRL Management
A derelict one-bedroom London home, complete with outdated electrics, bare walls, and hole-riddled ceilings, is now up for sale for £2.5m. This staggering amount is nearly 10 times the average home price in England and Wales.
Located in Little Venice in Central London, this ‘mews house’ is presently the most expensive one-bedroom London home on Rightmove. These mews properties were originally used to house domestic servants and horses, but over the past four decades they have become more popular with homebuyers. According to recent estimates, about 90% of London mews properties are now used as residences.
The Little Venice home consists of a double garage on the ground floor and a bedroom, kitchen, living room, and bathroom upstairs.
The floorspace is barely 1,484 square feet and the entire property needs to be renovated, but representatives for Lurot Brand, which is marketing the property, say that its future owner will have the chance to make a substantial tax-free profit.
Mr James Robinson said that the London home which is located in the same street where Sid Vicious and Nancy Spungen once lived, takes the concept of ‘unmodernised’ to an entirely new level. He conceded that the roof is extremely leaky, so residents could literally have to take an umbrella to bed.
The house is, despite its many imperfections, one of the most desirable available properties in prime Central London. Mr Robinson suggested that its derelict state could be one of the reasons why it was so valuable: if a buyer obtained planning permission to extend into the roof and the basement, the result could be a home worth £4m.
He explained that the new owner could realise a savings of £180,000 on stamp duty compared with buying a new home at £4m. If the house is knocked down and reconstructed behind the facade, the VAT on the rebuild cost is reclaimable. With an estimated build cost of £700,000, there would be an attractive tax-free profit at the end.
The listing appeared on Rightmove less than three months after one of the smallest homes in London, which had an original asking price of £600,000, sold for £713,823.
Recently released data, however, suggested that in May property prices fell for the third month in a row. Nationwide hinted that it was additional evidence of decreased momentum in the housing market.
Last month’s drop in prices signified the largest sustained decline since 2009 post-crisis slump.
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