Beautiful Yet Derelict London Home Available For £2.5m

June 16, 2017 by

london home

A derelict one-bedroom London home, complete with outdated electrics, bare walls, and hole-riddled ceilings, is now up for sale for £2.5m.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.

About CRL

CRL’s specialist team arrange structural defects insurance to protect thousands of new ventures throughout the UK and Ireland. CRL assist in sourcing fast, flexible cover, arranged by the in-house team who are dedicated to providing the highest quality of customer service.

Anyone engaged in a building project or managing a portfolio of new-build properties that require mortgages, will require a 10-year structural insurance policy on the property. CRL recognises that every opportunity is different, there are no tick boxes and no set criteria – just an appetite for adventure!

To find out how you can start working with CRL and purchase a structural warranty, visit what we cover.


You may also be interested in...

  1. Kier Chosen to Build New Skyscraper

    Kier, a major construction and services group for residential and commercial properties, has been awarded a £29.5million contract to design and build what will be the tallest building in Plymouth upon completion. Beckley Court on Cobourg Street will stand 78m high, dwarfing the Civic Centre, which is currently Plymouth’s tallest building at 14 storeys. The…

    November 18, 2015 by

    Read more
  2. Court of Appeal Ruling Supports Housebuilding on Small Sites

      Developers may now be able to build more properties thanks to a Court of Appeal decision allowing more homes to be built on smaller sites. Introduced in November 2014, the affordable housing contributions policy for smaller sites was intended to increase the number of residential properties constructed on brownfield sites. It posits that developments…

    June 3, 2016 by

    Read more
  3. How to Reclaim VAT on a Self Build or Property Conversion

    If you’re a self-builder or converting a non-residential property into a home, we have good news for you: most of the VAT you paid out on the project can be reclaimed. The reclaim is possible thanks to rules implemented to give self-builders and converters the same benefits as those who buy a new build home…

    March 11, 2015 by

    Read more