Peter Wetherell of Mayfair based brokerage Wetherell shares with Nick Churton of Mayfair International Realty his September Market Report.
The “Sultan of Berkeley Square” Returns
HISTORY – PRICES THEN AND NOW
The noisiest part of a quiet August was the return to Mayfair of Asil Nadir who fled these shores nearly 20 years ago.
Now 69 he has travelled back with his 26 year old wife to fight outstanding charges of stealing £34M from his Polly Peck empire. His office headquarters were based in Berkeley Square a short stroll from his house in “Mayfair Village”.
His return brought back memories as Wetherell dealt with both the Mayfair house he left and the one he now rents for £5,000 p.w.
In December 1992 Wetherell acquired his house off the bank selling Polly Peck’s assets. In those days there was no leasehold enfranchisement for buying freeholds (except for small houses) and his 5 bedroom corner house was on a 65 year lease for £850,000 which we acquired for a client at a knockdown price of £612,500.
Earlier in 1991 the 6 bedroom house he is now renting off Grosvenor Square, again on a 65 year lease, was sold for £1.05M, say £1.25M freehold value. Wetherell recently sold this house freehold on an asking price of £7M. This represents a 560% increase in value over 19 years or nearly 30% per annum!
Another recent “off market” sale of a freehold house in “Mayfair Village” was sold by Wetherell for £11.5M which previously sold in December 1992 on a 35 year lease for £1.225M. Assessing a freehold value at £1.9M would again show a 600% return.
FUTURE GROWTH IN MAYFAIR VALUES
Mayfair still represents good comparative value to other prime central London residential locations. For those fearing that we have future inflationary times ahead, Mayfair property has shown a remarkable rise from the previous recession of the early 1990’s to today.
Wetherell’s view is that there will be a substantial uplift in the future as Mayfair continues its reversion to being the premiere residential area of central London.
The usual lull in August sales activity was countered by 25 new instructions in the Mayfair market which represents nearly 20% of market availability and was solely needed in a market starved of stock. Wetherell won 30% of these new instructions.