Strutt & Parker’s Knightsbridge office has exchanged contracts within 24 hours of agreeing the sale of a one-bedroom resale flat at One Hyde Park following multiple bids.
The 988 sq ft flat – one of the most expensive one-bedroom flats in the world – was launched two weeks ago at £5.25m after it had been repossessed.
Charlie Willis, head of the Knightsbridge office, said: “The property generated huge interest from both local buyers and international parties. Saudi, Kuwaiti, Turkish, Iranian, Chinese, Indian, American, Greek and Russians expressed interest.
“Numerous offers were made very quickly but in the end the seller decided to go with the option of a 24-hour exchange which took place on Tuesday.”
Last year, Strutt & Parker handled the only other resale so far within the development, to a Japanese buyer. Both the buyers were offshore companies who will qualify and pay the full Stamp Duty levy.
Strutt & Parker say they are due to bring more One Hyde Park properties to the market.
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Comments
Hmmm... 'anon' doesn't seem to want to debate anymore... :o(
ANYWAY - I searched the Archive and found the following copy from when the story first hit EAT, on 20 September:
"A one-bedroom flat at One Hyde Park – Britain’s most expensive block of flats, developed by the Candy brothers – has been repossessed and is on the market for £5.25m.
It is being marketed by the receivers through Strutt & Parker.
Its former owner, an Irish property tycoon, is said to have racked up debts of over £250m.
Ray Grehan, now bankrupt, bought the Knightsbridge flat in 2007 for £3.7m. His creditors will get the bulk of the proceeds, with 15% going to his estranged wife Geraldine.
The fourth-floor apartment comes with a service charge of nearly £14,000 a year and annual ground rent of £2,000.
It is one of the cheapest properties in the development, described as ‘entry level’."
And still we don't know what the actual sale price was - but surely we can assume that it was at least the asking price of £5.25mill.
Watch this space... I for one am gonna be checking LandReg out of curiosity!!
"Its simply worth what its worth right now in todays market and nothing else is relevant...
...Markets move, in london, sometimes by the hour."
So then... what's your problem with it selling - in what you openly state is an unique marketplace - in the way that it actually did?
In your own statements, previous price is irrelevant. OPINION of "value" is irrelevant. EVIDENCE of "value" is irrelevant.
It sold for "what it was worth right now in todays market", according to your argument.
Lender did good, therefore. They limited the defaulting borrower's liability for interest payments - thus adding to the actual "value".
Sounds like a case of "end of" to me. And the Lender deserves congratulating to boot.
Maybe ALL repos should be handled in this way.
Somehow, though, I think not.
Yes you are totally wrong. The previous value of a house has no bearing on its current or future value. The sooner that everyone including your goodself latch on to this news, the better. Its also totally irrelevant whether it was new, a week old, a decade old, lived in or never lived in, the original purchase price is of no consequence. Its simply worth what its worth right now in todays market and nothing else is relevant. If it was worth 10 million last year and 5 million now, thats what its worth. If it was worth 1 million last week and 5 million now, same answer. Markets move, in london, sometimes by the hour. Okey dokey.
anon/Anon... "Its totally irrelevant what the purchaser paid for it in the first place, its what its worth right now thats important."
Correct in the second part of the above - totally disagree with the bit preceding the comma. Your example of a property sold two decades ago would qualify in this respect, I agree - but this is an almost BRAND NEW property where the pot has hardly been pee'd in! It is in a location where prices have apparently rocketed month on month since Adam was a baby. It was 'sold' at a fixed price probably a year or so before it was completed. And - in complete contrast to 'yer usual' repo, it appears on the Agent's brochure to be in superb order throughout.
Taking the above into consideration, knowing what it changed hands for is FUNDAENTAL to assessing whether or not a back-door deal was done - and even then, it would be pure speculation.
Or am I wrong?
Pee Bee......with respect, I would have to differ from your opinion. You state that its important to know what the property originally sold for so we can confirm if best price has been achieved now. Why ???? Its totally irrelevant what the purchaser paid for it in the first place, its what its worth right now thats important. If you paid 20K for your house 20 years ago would it be ok if I gave you 20K for it now ?? I think not, a property is worth exactly what the current market dictates that its worth and has no relation to what it was worth yesterday or last year or last century. This is estate agent basics is it not ?
The article states that numerous offers were made but the lender chose to go with a 24 hour exchange implying that the market showed lots of interest but was sold to someone on a fast exchange !!!!! I wonder why that purchaser wanted a super fast exchange period ? Could it be that he knew the world and his dog would be offering more for the property if he didnt secure it quickly ?? I think so.
On the topic of whether lenders should just leave borrowers in there not paying if the property market is rising, well thats open to debate. I would say no on the basis that a lot of people would just stop paying every time the market rises, me being one of them. My local area is booming at the moment so I think I will just stop paying and tell my lender they would be crazy to repossess me and I will be in touch when the market levels out or declines to recommence my payments. Then I will wake up.
Hmmm... the great 'Repo Debate' should be in full swing here - I wonder why not?
The LACK of information in this story is leading to wild assumptions.
1 Land Reg/NetHousePrices etc haven't got this property listed from the original purchase, so we don't know what it turned over for initially. Does that matter? Depends on your viewpoint, I suppose - but I would argue yes, absolutely when it comes to debating whether 'best price' was sought and achieved.
2 The property was marketed at £5.25m. NOWHERE does it state how much the sale was actually agreed at and what the price was at exchange.
3 The '24-hour sale' that Anon is referring to was actually a 24-hour EXCHANGE after a buyer was apparently chosen from multiple offers received. The article states that the property had been marketed for a period of some two weeks before the final price was agreed.
4 Has anyone actually looked at the property itself on RM? I've never seen a repo looking like a scene straight out of Grand Designs until now! Not an inch of red tape visible on the sinks or loos; and the chattels that have been left behind appear to be worth more than a street of houses here 'oop North! I couldn't afford the BED; never mind the bedROOM!!
With prices allegedly increasing at a rate of knots in this area, then you could argue that price inflation was outstepping the interest on whatever loan was against the property. Would it not therefore have been in the "defaulting borrower's" best interests NOT to sell - just let it make money standing doing nothing!?
Of course, no-one from S&P will comment.
I, for one, would be disappointed if they did.
Thoughts, folks...
I am sure the poor chap who has been repossessed will be over whelmed to hear that the lender has sold their precious flat within 24 hours and totally overlooking the requirement to market for a reasonable period on Rightmove / local press / marketing portals etc. How can the lender justify selling it within 24 hours and stating in the same breath that there was a huge amount of interest in the flat ? If I was the ex borrower and was either being asked to repay a shortfall debt or had just received a surplus at less than I was expecting I would ask to view the full marketing file. If my lender had just sold it within 24 hours I think my solicitor may be hearing about it. Would be interesting to hear which lender it is and who orchestrated the sale on their behalf.
36 months+ of rising prices in central London and a string of purchasers queuing up to buy. How does anyone get repossessed in those circumstances?