Advice Archives | Page 3 of 7 | London Property Consultants

The rise of the super-let in Prime Central London

Simon Barnes highlights how the demand for a super-let in Prime Central London is on the up:

“Over the past few years, Prime Central London’s ‘super prime’ market has stalled but not stopped. Global events such as the oil crisis, China’s flagging economy and Russian actions in the Ukraine affected international buyers irrespective of where they came from. Consequently, rather than for example only three out of ten overseas buyers being adversely affected by a world event, all nationalities whether Arabs, Russians, Chinese, Indians or Europeans, have experienced some negative impact as a result of economic and political uncertainty.

This in turn, has affected the number of ‘super prime’ properties remaining unsold across the most desirable postcodes in Prime Central London. Taking a pragmatic approach has seen savvy developers and sensible vendors take a decision to offer their properties to the rental market for a two to three year rental rather than reduce the asking price and lay themselves open to accepting an even lower offer. The advantage being that over a limited term they can achieve exceptional rental revenue, whilst retaining their property asset and relaunching on the market at a later time when the PCL super prime market looks promising. It really is the common sense approach to wait until the market shows a positive change assuming no forced sale is involved.

Recently H Barnes & Co, in conjunction with Knight Frank, rented a house in Mayfair for in excess of £20,000 per week. This deal is a great example of how a high end residence which had remained unsold attracted intense competitive interest the moment it became available to rent.

Rental properties of this calibre are few and far between, so when one comes available, they attract the attention of the UHNWI. As far as the tenants go, their motivation for renting tends to be based on individual circumstances rather than a desire to rent. It might be that their own home is undergoing a comprehensive refurbishment, or undergoing major repairs, or they are waiting for the right property to come to market. A whole host of reasons, but for them money is not object and they will have an exacting brief when it comes to securing the right hard-to-come-by rental property at this level of the market. It is not uncommon for owners of these properties to agree to a long term rent and then a sale at some point further down the line. At H. Barnes & Co we have dealt with several clients who have gone on to buy their rented home.”

This article by Simon Barnes was originally published in PrimeResi (subscription) on 5 May 2017

https://www.primeresi.com/the-rise-of-the-super-let-in-prime-central-london/100392/

by Simon Barnes

How lateral space in London adds up

“In Prime Central London (PCL) one thing is a fact; lateral space is rare, sought after and expensive.” says Simon Barnes of H. Barnes and Co. “Around Hyde Park Corner one can expect to pay around £5000 per square foot, as you move further out the land becomes cheaper and that is reflected in the asking price.

Traditionally London is full of tall narrow townhouses, deemed by overseas buyers to be quintessentially English and desirable; in reality everyday life is better lived over two floors than five. Asian buyers prefer new build, Eastern Europeans prefer the imposing stucco-fronted grand townhouses found in Belgravia and Knightsbridge. Space here is at a premium and finding a good lateral house is extremely hard.

Buyers in search of a more practical lateral floorplate find it hard to secure anything suitable in the heart of Prime Central London, so they start to widen their search and compromise on location. Hampstead and Highgate offer a better choice for those wanting detached family houses laid out over two or three floors, which can easily accommodate Middle Eastern and Indian families, with maybe three generation or several families under one generous roof.

The problem across PCL is that invariably many substantial properties are listed and therefore works and reconfiguration of the living space is restricted, meaning that rooms look out of proportion when carved up, partition walls don’t work and you end up spending vast sums of money for a second rate layout. The truth is that narrow buildings do not convert well. Today, Grosvenor Square in Mayfair is a rare example of a reconfigured building converted into great lateral space.

This is where mansion blocks tick the right box; purpose built, practical, well built and designed, with efficient heating, plumbing, good sound proofing and insulation. Eaton Square and Eaton Place offer some good flats for those in search of a premier postcode.

Years ago, I recall the best flat in London at the time in Eaton Square being sold – it was a first floor apartment spread out across four buildings. Recently, a flat in Knightsbridge comprising around 7,000 square feet sold for around £10,000 per square feet, double the going rate, because it offered exceptional rare lateral space in such a prestigious location.”

by Simon Barnes

Stuck on stucco in prime central London

Simon Barnes explains why the stucco fronted house in Prime Central London is seen as a status symbol by international buyers

“Regent’s Park offers some of London’s most desirable and iconic stucco-fronted houses; crescents of period Nash built properties looking out across the vast green space of Regent’s Park. For international buyers London’s stucco fronted homes represent a status symbol with their imposing grand facades, pillars and ornate front doors.

The Royal Parks and Crown Estate who manage the buildings are most diligent about the upkeep and external appearance, so the properties are immaculately presented with paint in a uniform shade and all kept in tip top condition.

The quiet streets of Belgravia with Eaton Square and Chester Square boast grand stucco facades, long favoured by the aristocracy and the great and the good, including the Late Baroness Thatcher, who was a long term resident of a stucco townhouse in Chester Square.

Over the centuries, these traditional period townhouses have remained largely unchanged in layout. They tend to be tall and narrow with similar floorplates – staircases leading off a narrow deep hallway and a main L-shaped reception room; neither particularly inspiring or practical and because they are usually listed, alterations and reconfiguration is very restricted.

Stucco fronted ‘trophy homes”

Buyers from overseas are seduced by the symmetry and grandeur of the stucco facades, which they consider typical of London’s finest residential offering. They overlook the impractical design, lack of lateral space and listed status and perhaps because many of them do not use the property as a main home, but own several homes around the world, they are able to accept the imperfections safe in the knowledge that they are happily stuck with one of London’s trophy homes.”

About Stucco – from Wikipedia

Stucco is a material made of aggregates, a binder, and water. Stucco is applied wet and hardens to a very dense solid. It is used as decorative coating for walls and ceilings and as a sculptural and artistic material in architecture.

Read more here

by Simon Barnes

To buy or not to buy unmodernised property

The idea of buying an unmodernised property can be attractive, offering potential to add value and put your own stamp on a property, making a handsome profit when it comes to selling.

Simon Barnes says: “Renovating a house well pays you in the long run because you can do it exactly as you want. And you’ll have the certainty that the quality will be of a higher standard because you will have overseen the work, rather than a developer, who will not have as lavish a budget.

From a seller’s point of view, it is much better to purchase from someone who has renovated by themselves for themselves. However, it is important to know what you are letting yourself in for. People think things will be straightforward to do and they end up being far harder. For example, if you live in a small terrace or narrow street with limited or no space for trucks or a skip, building work can prove a major headache and logistical nightmare.

Equally, if you’re in a terraced house without direct access from the road to the garden, building a rear extension can turn out to be a big problem, requiring hand digging in the absence of proper machinery. A top floor flat requiring scaffolding will mean you will need to pay for it to be erected to go up the entire building. If you’re certain you want an unmodernised property, make sure the first step you take is to get a survey done ahead of making an offer.

It simply isn’t worth waiting until you have instructed solicitors and had your offer accepted, because haggling post offer can be tricky and unsuccessful. However, if you present a survey with proof of all the work that’ll need doing when making the initial offer, you are far more likely to secure a better more reasonable price from the off, saving time and money for everyone down the line. Whether it’s underpinning a house to correct subsidence, getting a new roof or rewiring the whole place, everything can be done.

The key thing to remember is that building work always takes longer and costs more than you anticipate.”

by Simon Barnes

The price you pay for expert property advice

Simon Barnes looks at property portals, dedicated agents and why you need to get expert property advice when selling your most costly asset

Commission is a dirty word among vendors trying to sell their homes, it sparks grumbling resentment, while legal fees and conveyancing costs get paid without a quibble from the seller.

The rise of the online property portal appeals to vendors because it appears a cheaper option. However, in my opinion, the old adage ‘you get what you pay for’ is never more apt than when it comes to choosing an online property agency over a dedicated agent and dare I say someone who picks up the phone and engages directly with their client.

It seems foolish to me that anyone would entrust their greatest most costly asset to a faceless digital set-up in preference to someone with years of personal industry experience. Loathed by many, a decent estate agent is in reality worth their weight in gold bricks and definitely deserves between 1% and 3% of the commission from any sale.

Your agent has the power to be a deal maker, a mediator and above all an enabler. It is they, who will navigate the problems thrown up during the course of the sale and come up with resourceful solutions, sensible property advice and the wisdom accumulated over years of encountering similar scenarios.

A solid capable agent will be the voice of reason when it comes to managing the egos of both buyer and seller and negotiating the best price achievable in whatever market you are selling. Without an experienced, professional agent the lines of communication, that are essential to progressing a sale, are completely neglected. If you use an online portal, when the momentum falters or the buyer threatens to pull out, you have no come back and absolutely no support, unlike when you retain a ‘real person’ and an agent who can pick up the phone, or meet the parties and get the deal back on course.

Make no mistake the business of house buying and selling is a tricky and sophisticated business, so it really is prudent to retain and pay for the best professional agency you can find. Professional agents will understand planning, talk knowledgeably about market conditions, make property value comparables and explain legal issues like listed building restrictions, covenants and rights of way. Any of which can throw you into confusion, not to mention a potential spanner in the works.

Grumbling about commission is ridiculous, when the price you are paying for expert property advice is so small in comparison with the final net gain – selling your house, banking the money and moving your life on.

Contact Simon Barnes

A version of this article by Simon Barnes appeared in PrimeResi (subscription required)

Stucco fronted ‘trophy homes”

About Stucco – from Wikipedia

Contact H. Barnes & Co – Tel: 020 7499 3434