A house in Mayfair that was sold for £19.175m in 2014 and put on the market this year at £25m has been sold - for just £15m.
The property, a former pub converted to become Red Lion House some years ago, is a vast 8,500 square feet, six-bed freehold property, with two receptions, dining room, media room, gym, swimming pool, roof terrace and an internal lift.
It had been sold in 2014 for £19.175m and had originally been put on the market this year at £25m.
However it was then repossessed by a bank which said it was prepared to take £15m - some £1,748 per square foot.
This compares with £2,000 or more psf usually achieved by unmodernised houses in Mayfair and the £3,000 or more psf for modernised properties. The deal took just seven days from viewing to exchanging contracts.
The buying agency involved in the deal, Black Brick, says the relatively good price was achieved because banks periodically review the value of properties on which they have written mortgages, and falling property prices can lead them to require lenders to post additional margin.
“Where owners cannot do so, the property may be repossessed. Banks then seek a quick sale and are, unlike some owner-occupiers, unsentimental about the price achieved, as long as they recover their capital” says the agency’s managing partner, Camilla Dell.
“Through our contacts, we’re aware of a number of attractive prime properties going through this process that are likely to come to the market soon. They are likely to offer significant value for buyers who can move quickly” she adds.