Q&A: The £75 million (Dh440m) townhouse in trendy Kensington
Will somebody pay that much for a house that needs extensive work? In short, yes. Prime properties in London do not seem to have a price limit. If somebody is willing to pay, that is the value. And rundown properties have their own attractions. Wealthy buyers like to decorate a house in their own style. So anybody spending that much for a property would be likely to renovate it.
Who is buying these properties? It is almost exclusively international buyers. By some estimates, 80 per cent of the homes sold for more than £5 million went to international buyers
Isn't this a bubble waiting to burst? Maybe. History shows that property prices can only go so high before they start to fall. And they can fall a long way after such a big bull run. But there is nothing ordinary about the prime London market
Only in modern London would you find a sprawling, rundown mansion on the market at £75 million (Dh439m).
The Grade II listed property in the Campden Hill neighbourhood of Kensington was once the home of the Uruguayan ambassador to the Court of St James's. The house has 60 rooms, including 12 bedrooms and six bathrooms, and it sits on 0.4 of a hectare in one of the most sought-after areas of London.
But the 96-year-old house has been empty for seven years and needs extensive renovation. The £75m price does not include the estimated £10m it would cost to bring the property up to neighbourhood standards.
"It deserves to be rebuilt with modern luxury and splendour for this type of detached house," said Roddy Craggs, a partner in the Kensington office of Knight Frank, which is marketing the property.
The current owners have spent years obtaining the necessary approvals for the renovations, which would bring the main house to 2,787 square metres, up from the current 1,161.
Plans include construction of a separate cottage house with three bedrooms, a tennis court, swimming pool and a "garden pavilion".
The house is livable now, but it requires "modernisation for this century", Mr Craggs said. "Things have changed in 20 years."
The renovation scheme includes the type of amenities required these days for anyone spending £75m for a house, including a cinema, sauna, steam room, wine cellar and, of course, a squash court.
Paying to add all these amenities may seem a lot to ask of someone spending so much for a property. But having the approvals in hand for doing the work adds value, Mr Craggs said. "It's the whole package.
That is the main thing to consider," he said. "It takes a long time to get planning for this type of project."
Kensington is one of the most prized neighbourhoods in London, where prices per square foot can often reach £3,000 to £4,000, Mr Craggs said.
"Yes, it seems like an awful of money," he said. "But that is what you expect in London in the best of the very best."
Top 5: Fastest-growing luxury markets
1 Nairobi, 25 per cent
2 Jakarta, 15.1 per cent
3 London, 11.4 per cent
4 Beijing, 10.2 per cent
5 New York, 9.3 per cent
Source: Knight Frank PrimeGlobal Cities Index
The Quote: Let not England forget her precedence of teaching nations how to live. - John Milton
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