LoginSubscribe to Alerts

‘Buy Now Pay Later’ Super-Prime London Home

Posted 27 October 2020 by Keith Osborne

A specialist in high-end homes is offering a finance package on its latest properties in prime areas of the capital...

Specialist ultra-prime developer K10 Group has unveiled and launched K10 CFS (K10: Creative Finance Solutions) which provides affluent buyers with a ‘buy now, pay later’ offer on ultra-luxury homes including the new build £30million Culross House in Mayfair.

The scheme enables a buyer to move into the home immediately and defer paying the majority of the purchase price for five years. It’s a new buying solution which has been introduced because so many of the developer’s clients want to own and move into a super-prime London home but are put off by the large upfront cash requirement and the current lack of lending in the market, so are choosing to rent rather than purchase.

With the K10 CFS offer, a buyer simply pays upfront a deposit to be able to move in immediately to a property and during the five-year period K10 Group highlight that the buyer benefits from the capital value uplift of the property.

Culross HouseUnder the K10 CFS opportunity, a buyer acquiring Culross House, which has an asking price of £30million, would pay an upfront minimum payment of £10million to move into the mansion. They would then pay K10 CFS a fee of £15,385 per week to cover occupancy and financing costs – this is significantly lower than the cost of renting the property. Then at the end of five years the purchaser would settle the balance of £20million on the purchase and benefit from the uplift in capital value of the property.

K10 Group highlight that should be buyer wish, they could let Culross House to a tenant for a rent of circa £25,000 per week – which would generate the buyer a profit (after fees to K10 CFS) of up to £500,000 per annum (for a £10 million investment); a total rental income of £2.5 million over the five-year, delayed transaction period.

K10 Group highlight that if the K10 CFS offer is successful then the super-prime developer will look to extend the arrangement and make it available for Doughty House in Richmond, the £100million private palace that is currently under construction. Potentially, a buyer could make an upfront payment of £35million for the palace, with a delayed transaction of up to five years, paying a final balance of £65million on the purchase.

Culross HouseKam Babaee, founder and CEO of K10 Group explained: “We have decided to launch K10 CFS and offer clients the opportunity to ‘buy now, pay later’ because our clients love the houses but the current state of the financial and lending markets leads them to ask us if they can rent rather than buy. With our new Creative Finance Solutions offer they can now move into the property immediately, benefit from buying it, yet delay payment of the bulk of the purchase price for five years.

“The ultra-prime residential markets in both Mayfair and Knightsbridge remain strong, with prices up 44% on 2017 in the former and up 37% in the latter.”

Located on Culross Street in Mayfair, directly adjacent to Hyde Park and Park Lane, Culross House, is a newly built townhouse-mansion which consists of the transformation of the site of the Coach House of the Earls of Essex, into a new 8,051-sq-ft, five-bedroom ambassadorial house, complete with cinema/club room, swimming pool, spa complex and private rear garden.

The specification, immaculate interior design and dressing for Culross House has been created by K10 Group working closely with its leading international interior design team to be a celebration of the ‘Best of British’ classic design, with key rooms inspired by famous five-star hotels and VIP venues from around the world.

Find out more at [email protected] or www.k10group.com.

 

Find retirement homes in London
Find Help to Buy homes in London
Find new homes in London

 

Malabar (Spitfire Homes)
29 February 2024
Spitfire Homes has announced the next stage of the major development in Daventry, now open for house-hunters to visit...Read more
The ‘Corndon’ house type from Cavanna Homes
29 February 2024
Friday 1 and Saturday 2 March are the dates of an Open House event for a decorated new view home at Bellevue...Read more
A Bromford show house
29 February 2024
Bromford has released the first of a brand new design of three-bedroom house for sale at its Park Lane site in in Cradley Heath...Read more
Sign up for email alertsGet the latest properties and updates sent directly to your inbox daily, weekly or immediately you are in control.
Subscribe to Alerts
Search news and advice

Click here to see your activities