Sold for £150k! The mud and rocks underneath a London mansion block that went under the hammer as an 'unexcavated basement'
11-29-2015
- 'Unexcavated basement space' sold in Bloomsbury for £150k
- Does not come with land above - and is yet to receive planning permission
- Prices in the capital now cost an average of £500k
By Myra Butterworth For Mailonline
The amount of cash paid for property in London smashed all expectations this week after a developer signed over a staggering six-figure sum for the mud underneath an existing block of flats.
The ground underneath a London mansion block was sold for £150,000 at auction as an 'unexcavated basement'. It has no planning permission and experts believe this is the only sale of its kind.
While paying hundreds of thousands of pounds for a piece of land in Britain is nothing out of the ordinary, this is believed to be the first time that such a deal has been struck where the developer must work around - or rather below - existing homes.
A pile of mud and rocks underneath a London mansion block has been sold for £150,000
This is yet more evidence of extreme measures being taken to develop homes in the capital where prices have soared in recent years. Recent Land Registry data indicates the average London property carries a £500,000 price tag.
With space at a premium, many people have already begun digging downwards in order to extend their homes in so-called 'iceberg' living, typically adding one or two basement levels.
But as they already own the property, the procedure is relatively straight-forward - if controversial among neighbours who fear the construction noise and disruption.
But in this deal, the developer will not own the property above ground level, which is a mansion block in an exclusive street in Bloomsbury.
The extraordinary offer of a solid, 'unexcavated basement space' came up at auction with the freeholder's consent to develop.
However, planning permission has yet to be approved by the local council and it is likely to cause outrage among those living in the block who will have to endure months of building work.
The plot had a £120,000 guide price, but eventually sold at the auction yesterday for £150,000, with the unnamed buyer gaining access to almost 2,000 sq ft of 'subterranean potential'.
The deal could be a big earner for the developer as the typical price of a one-bedroom flat nearby is £650,000.
Chris Coleman-Smith, head of Savills auctions, revealed it was the first time he had sold something like this.
Iceberg homes have cropped up across London
He said: 'You hear about people digging beneath their mansions so why not on something a bit different. With a shortage of space in London it makes sense.
'This unexcavated basement sparked the imagination of bidders, attracted to its scope for potential development and location in a vibrant enclave of central London.
'Bloomsbury has already benefitted from the substantial regeneration of neighbouring King's Cross, with further gains possible once the final works are complete in 2020.
'The average value of residential property in Bloomsbury has reached £768,669, up by 15.8 per cent over the last year alone. Even if the buyer chooses to do nothing with the land, there is still good potential for further capital growth.'
One of the most famous basement developments to date was one proposed by the multi-millionaire founder of Foxtons estate agents Jon Hunt.
Hunt was granted permission by his local council in Kensington and Chelsea to build a massive underground extension, effectively giving him five extra storeys.
It included a tennis court and a car museum with a special lift to move in his treasured machines.
Henry Pryor, a property expert, cannot remember an unexcavated basement being offered before and believes the Bloomsbury one is a first.
He said: 'Serious developers are using recent changes in planning legislation to build upwards.
'This subterranean opportunity may tempt someone but penthouses sell for more than basements so whoever bought it should be cautious - both on the value and the practical risks of digging out under an eight-storey building.
'Would suit mole or enthusiastic bunny' might have been in the agent's description since an enthusiasm for burrowing would seem essential.
'Might the resulting home be called "the Warren"?'
He added: 'Similar projects in disused Underground Stations and nuclear bunkers have been proposed in the past but most start with at least the space already carved out of the London clay.
'Underground dwellings may be popular with Hobbits and Teletubbies but I find most are disappointingly poor these days.'