On Davies Street close to Claridges is a 956 sqft two bedroom priced at £500,000; we believe this is the cheapest two bedroom apartment currently for sale in Mayfair and the wider West End.
The current average price of a home in Mayfair is £4.66 million, with a typical two bedroom apartment priced at £2.8 million. Last year, less than 5% of homes sold in Mayfair were priced below 7-figures and none were priced below £750,000. The majority of sales (49%) during 2016 were priced between £2 million to £10 million.
The spacious apartment on Davies Street is located in Erskine House, a smart recently created apartment scheme which was originally a terrace of late Georgian houses built in 1824-1827; converted by Grosvenor in 2003 into a scheme of 11 residential apartments. The new apartment scheme is located behind a retained period façade and is complete with smart foyers and a communal garden.
Located over ground, lower ground and basement floors the triplex apartment has a spacious reception room. Adjacent to this is a separate fully fitted kitchen/breakfast room. There is a bedroom on the ground floor which could alternatively serve as a second reception room or home office. A shower room completes the accommodation on this floor.
The master bedroom suite occupies the lower ground floor and consists of master bedroom with fitted wardrobes and ensuite bathroom. The basement floor consists of a large storage room, ideal for storing luggage, ski, clothing and other household effects.
So the flat is recently built, its spacious, its in a triple AAA ultra prime location and the price is a mega bargain in Mayfair terms. So what is the catch! readers by now must be screaming. Actually there is no catch really…
OK the lease is just 12 years, however £500,000 over 12 years is just £868 per week, and given that the average two bedroom apartment in Mayfair current lets for £1,300 per week – this flat still represents a potential accommodation saving of £432 per week or £269,568 over 12 years. In addition, we calculate that it would cost just circa £150,000 to extend the lease to a standard Grosvenor 20 year lease.
Peter Wetherell, Chief Executive of 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 forecast the extinction of the sub-£1 million flat in Mayfair. Well this flat clearly proves that mega-bargains can still be snapped up in Mayfair. Like the Dodo, sub-£1million flats are still extremely rare in Mayfair so we expect it to sell extremely quickly.”
James McManus, Managing Director of Wetherell said: “This apartment would be ideal as a university or college student pad for a young student from a wealthy family from the Middle East, Africa or Asia. 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. This apartment would be perfect for a student – the spare room could be for a colleague on their course or for family who visit them, and the length of the lease allows for them to study A-level, degree and Masters in London with a few years remaining for them afterwards to launch them into London society post graduation. It would also allow the family to extend the lease and sell the property afterwards or keep it as a rental investment. At this below market price the property also falls below the stamp duty and other main tax levies for higher priced homes so the purchase would also be more tax efficient for the buyer.”
Erskine House is located in the heart of luxury Mayfair at 59 Davies Street, just a few moments away from Claridges which is on the other side of Davies Street. Other luxury brands on Davies Street include Vera Wang at Browns, Alfred Dunhill, Turnbull & Asser, Hedonism Wines and Philips Art Gallery/Auction House. Adjacent streets include Mount Street, South Molton Street and Bond Street. Landmark venues including Selfridges, The Connaught Hotel in Carlos Place, Scotts Restaurant on Mount Street and 34 Restaurant in Grosvenor Square are all just a short stroll from Erskine House.
The two bedroom apartment in Erskine House is priced at £500,000. Service charge is £5,334 per annum and ground rent £500 per annum.