Wednesday, 1 April 2015

The building itself probably only has scrap value.

From The Daily Mail:

A mansion on London's Billionaire's Row which was built by the owner of the Tate and Lyle sugar empire has sold for £25million - just a quarter of its original asking price.

Heath Hall on The Bishops Avenue in Hampstead, north London, a 24,000 sq/ft trophy home set in a plot of around 2.5-acres, was put on the market three years ago for £100 million.

If you look on Google maps, the plot appears to be about 100 yds x 120 yds, is nearly rectangular, with a road along the back for the houses behind.

So you could build a row of about fifteen nice big terraced houses along the front (on The Bishops Avenue itself) and another ten along the back, with off street parking for two or three cars in front and decent sized back gardens (by London standards).

You can sell each finished house for (say) £1.5 million (Zoopla's Z-Index for that postcode is just under £1 million), knock off a couple of hundred thousand for the cost of building it, £1 million for the land (£25 million ÷ 25), the rest is your profit margin, Bob's your uncle.


Rich Tee said...

As noted by one or two commenters on that article, the decorations are pretty hideous. Any potential buyer is probably factoring the cost of ripping them all out and starting again.

The Stigler said...

Almost no-one needs a massive house. Houses like this date from a time when rich people needed their own servants. Today, you'd just call the caterers and cleaners and get them to come in.

The other possibility is that you carve the house up into apartments, I guess.

(and indoor personal swimming pools are just daft - go to the gym, let them have all the headaches about moisture, linings, cleaning and so forth).

Bayard said...

Mark, have you factored in the bung you would have to pay to the local planning authority to allow you to build all those extra houses.

Mark Wadsworth said...

RT, I think the over the top interior design stuff is quite good fun, actually.

TS, it's called 'conspicuous consumption' and what has driven human society since we climbed down from the trees.

B, sure, s104 this, contribution to local housing that, BoJo will let you off the 'affordable housing' rap if you tick the right box, which appears to be 'this will cut into my profits'.