A mews flat in St John’s Wood to buy for only £185,000?
- Credit: Archant
No we’re not leafing through dusty old property listings from the late ‘90s, but there is a catch to this apparent prime London bargain.
The average asking price for flats in desirable St John’s Wood is £991,929, with flats in Cedric Chambers currently on the market for between £374,000 and £513,000, according to Zoopla.
But for this flat in particular there a fewer than five years remaining on the lease.
This means that there are a number of issues that any potential buyer will have to consider carefully before deciding to purchase.
Unless they want to walk away with nothing in less than five years time, they will also need to arrange a lease extension with the freeholder.
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This complex process takes into account the quality of the house, the location and the existing lease amongst other factors. The price will include a valuation of the property (anything from £500 to £1,000 plus VAT), legal fees (around £750 plus VAT) and also depends on negotiations with the landlord.
Extending the lease on this property could cost well over £200,000 and tenants usually only have the right to extend the lease after being the registered owner of the flat for a minimum of two years.
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In addition buyers will have to pay for the property in cash. Daniel Leigh, sales manager at Kinleigh Folkard & Hayward St John’s Wood, said: “Few lenders will mortgage a property with a short lease so cash is generally a must if you want to secure the sale.”
Extending a lease can be a long and difficult process that many people would not consider worth the effort, which explains the reduction in price. Overseas buyers are often put off by the complexity of the extension process.
But for those who are desperate for a piece of property in a prime location and are willing to take a risk, it could prove to be a lucrative deal.
With a long lease, the flat would be worth closer to £470,000 reckons Leigh, and with no mortgage the rental yield on the property would be some of the most competitive in NW8.
Set in a secluded cobbled mews, Cedric Chambers is just a short walk away from Regent’s Park. The first floor apartment is decorated in a modern style, with a double bedroom, a reception room with an open plan kitchen and a shower room.
Mr Leigh said: “This is an incredibly rare opportunity for a buyer who wishes to live in a very sought-after pocket of London.
“It is situated close by to all the amenities that the city offers, including Regent’s Park and multiple underground stations.”
Anyone up for the challenge of securing this smart and stylish home with a prime postcode can find out more about the property from Kinleigh Folkard & Hayward or Foxtons.