A flat in Mayfair, one of London’s most expensive areas to live, has come on the market for £500,000 – less than the average house price across the capital.
The two-bedroom apartment, a stone’s throw from Claridge’s, is the “cheapest flat currently for sale in posh Mayfair and the West End”, according to Wetherell, the estate agent marketing the property.
In 2016, less than five per cent of homes in Mayfair were priced below seven figures, the agent added, and none came on the market under £750,000.
A typical two-bedroom apartment in the central London neighbourhood goes for £2.8 million – almost six times the price of this flat – while the average property price in Mayfair is £4.66 million.
Does it sound too good to be true? There is, of course, a catch: the lease expires in 12 years.
However, Wetherell pointed out that £500,000 over 12 years works out at £801 per week – considerably less than the £1,300 average weekly rent for a two-bedroom apartment in May fair.
It would cost £150,000 to extend the lease to a standard Grosvenor 20-year lease.
Wetherell expects the apartment to be bought for a wealthy university or college student from the Middle East, for whom half a million pounds is “pocket money”.
“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,” said James McManus, managing director of Wetherell.
Although there are other costs associated with the property, including a hefty £5,334 annual service charge plus £500 per year for ground rent, Mr McManus said the cheap purchase price will allow the buyer to save on taxes