Tiny horror home considered 'unmortgageable' sells for over £1million

30 March 2023 , 14:20

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An 'unmortgageable' home has sold for over £1 million at auction (Image: Hammer Price Homes / SWNS)

A horror home which was described as 'unmortgageable' because of its decrepit state has been sold for £1 million at auction.

The tiny ruined property, which is attached to a grand Victorian house, is sat in a prime spot in Belsize Park, north London - one of the priciest areas of the capital.

Photographs show water pouring through the ceiling, paint peeling off the walls and large amounts of grime in the kitchen.

The 700sq ft pad was listed earlier this year on Rightmove as auction only, as its terrible condition meant it would not be possible for a buyer to secure a mortgage on the property.

Despite its flaws, the home went up with a starting price of £785,000, while experts from property auction company Hammer Price Homes warned it would probably go for closer to £1 million.

But it has still left homebuyers shocked after the hammer came down on Wednesday at £1,054,500, with a total of 58 online bids before it was eventually sold.

London flat for rent for £1,400 a month with bed tucked away in kitchen cupboard

Tiny horror home considered 'unmortgageable' sells for over £1million

Water damage has caused extensive damage to every room in the 700sq ft property (Hammer Price Homes / SWNS)

Named 'The Cottage', the property sits in a celebrity-filled part of London, as Helena Bonham-Carter, Liam Gallagher, Gwyneth Paltrow, Stephen Fry and Jonathan Ross have all made Belsize Park their home in recent years.

The living space is spread across two floors, with a spacious entrance hall, kitchen and living room on the ground floor and two bedrooms and a bathroom on the first floor.

A very generously sized garden for the area sits at the back - though it too is in desperate need of work.

Water damage has meanwhile ripped through every single room inside the home, with unsightly stained walls and even a hole in the ceiling on the first floor.

Grime also covers the kitchen of the tiny home in Belsize Park, north London (Hammer Price Homes / SWNS)

Outdoor pictures show lead hanging from the roof, which may be behind some of the water ingress.

The Rightmove listing from Hammer Price Homes read: "Hammer Price Homes are delighted to present for sale by online auction this charming two-bedroom end of terraced house / cottage on the prestigious Lyndhurst Road.

"This picturesque tree-lined road really is in prime location and is within walking distance to Belsize Park, Hampstead and Finchley road, offering easy access to a wide range of bars, shops, and restaurants.

The tiny home is located in Belsize Park, north London (Hammer Price Homes / SWNS)

"Green open spaces can be found close by, including the popular Hampstead Heath which is within walking distance from here."
And it adds: "This auction is open for cash buyers only as due to the condition we believe that it will be not be possible to obtain lending on the property through a traditional mortgage.

Would-be buyers were also informed that what they see on the photographs will be what they get, as they were warned: "The property is sold as seen."

Despite its flaws, the home went up on Rightmove with a starting price of £785,000 (Hammer Price Homes / SWNS)

The original price tag on the home sparked much conversation about the property before it was sold, with many citing it as another example of London's inflated property market.

Anticipating the scale of repairs, one Twitter user said: "One bathroom. Two bedrooms. 700 sq ft (most of it uninhabitable). £785,000. London is broken."

Another replied: "As well as the renovation, I wonder if you can structure your mortgage to cover the cost of an exorcism!"

One user took things in a more satirical direction saying.: "Wow, look how the Johnsons left the flat in Downing Street when they moved out."

The hammer came down at £1,054,500 at this week's auction with a total of 58 online bids (Hammer Price Homes / SWNS)

But others saw the pad's potential.

One said: "It is an end terraced house with an extensive back and front garden, south facing with six tube services on your doorstep.

Someone will turn that into a beautiful home.

"The average price on that street is £1.3m million for a two bedroom FLAT."

Another said: "This merely reflects the land value. It's in Hampstead, one of the most desirable areas in the country. If it was in pristine condition it would be closer to £1.5m."