One of the most common questions asked of estate agents who have property for sale in Mayfair and other exclusive areas of central London is: What is the difference between prime and super-prime residential homes?
As a Belgravia estate agent specialising in all aspects of buying, selling, letting and renting residential and commercial property in Knightsbridge, Chelsea, Mayfair, South Kensington, Pimlico and Westminster, we understand the confusion.
It is a result of the following two definitions…
- The prime market consists of the most desirable and aspirational property by reference to location, standards of accommodation, aesthetics and value. Typically it comprises properties in the top 5% of the market by house price.
- Super-prime residential property is typically defined as the top 5% of the most valuable homes in a geographical area or postcode.
How can prime property and super-prime property both be considered to be homes valued in the top 5% of the market? Quite simply, it depends where that market is located.
Outside the postcodes considered to be prime central London and certain pockets of south-east England, the overwhelming majority of residential property is valued at under £1m. Therefore, in the vast majority of UK postcodes prime residential property is considered to be the top 5% of homes valued at £1m or more.
Some estate agents operating in South Wales, for example – where the average price of a home is no more than £260,000 – even call homes worth £500,000 prime residential property.
But that definition does not help identify the most desirable homes in the areas of central London where the vast majority of residential property is valued at over £1m. In these areas of prime central London, estate agents have coined the term super-prime residential property to describe the top 5% of homes that are worth £10m or more.
But the magic £10m price tag only applies to trophy homes in London. In Paris, for example, super-prime property is valued at under £6m, while in the south of France a super-prime trophy home in Monaco has a value of at least £12.5m.
But as property values in the most exclusive areas of prime central London continue to rise, we can see a day when super-prime will no longer be adequate to describe the top 5% of homes in Mayfair. It may sound far-fetched, but we believe a new term will have be coined. How about ultra-prime?
Here at Best Gapp, we are starting to market ultra-prime properties with a value of £15m and above. But it is not just the local market that is pushing up property values in London’s most desirable postcodes.
Our property experts have specialist knowledge that can help home owners increase the value of their property assets through a freehold extension or freehold purchase.
The two key laws governing this area of the property market – which is known as leasehold enfranchisement – are the Leasehold Reform Act 1967 and the Leasehold Reform, Housing and Urban Development Act 1993. For more information about how Best Gapp can use these pieces of legislation to increase the value of your property, contact us today.