It’s in a popular part of London, it has a long lease, it’s handy for the station – and it’s on the market at a guide price of just £75,000. A Christmas miracle? Not quite. The property, being marketed as “the least expensive flat in London”, does come with a catch: its compact size means you will need to pay in cash to secure it.
The online estate agent Purplebricks, which is handling the sale, describes it as “an exceptionally rare opportunity for a first-time buyer, landlord or commuter seeking a bolthole to purchase a property in a desirable part of London for the same price as a high-end family car”.
There’s just 75 sq ft (just under 7 sq metres) of living space, but the agent promises “bright accommodation that includes a sleeping area with compact kitchenette (mini fridge and microwave included) plus a separate wet room with shower and WC”.
Homes costing less than the stamp duty threshold of £125,000 are few and far between in a city where the average price has bust through the £500,000 mark. This first-floor flat in Clapton, east London, has a guide price that puts it in the same bracket as a parking space in some parts of London, or a stake in a shared-ownership property. The average price for a flat for E5 is £383,260, and has risen 7.91% in 2015.
It’s big enough to be legally home to one person but not big enough for banks and building societies to be willing to lend you the money to buy it with. Andrew Montlake of mortgage brokers Coreco said lenders often restricted borrowing to studios measuring more than 30 sq metres (322 sq feet) “and even then this is subject to valuers’ comments and the location of the property”.
He added: “Some are a little more strict and do not like to lend on studio flats at all as they believe they are the first properties to lose their value in a downturn.”
Within two days of the flat going on the market there were 30 viewings and five offers and there will be an open day on Tuesday.
Purplebricks’ Simon Taylor said: “This flat is perfect for someone working in the City or Central London. It would also be a savvy choice as a buy-to-let investment, as it could achieve a rental income of around £1,000 per calendar month.
“This isn’t somewhere stuck on the fringes of Greater London either – it is in the very heart of Clapton, an area that has benefited from the Dalston fallout and is undergoing a real renaissance with values set to continue to increase.”
On top of the asking price the buyer will pay an annual service charge of £250 and ground rent of just £1.
Comments (…)
Sign in or create your Guardian account to join the discussion