Tiny ‘uninhabitable’ cottage infested with asbestos & dry rot located in celeb-filled town is sold for astonishing price

A SMALL “uninhabitable” cottage in a celebrity-filled town has been sold for an astonishing price despite being infested with asbestos and dry rot. The tiny home in super posh Hampstead, north London, measures just 700sqft and needs extensive work to become liveable. The small home is in a celebrity hotspot Credit: Hammer Price Homes The buyers have plans to completely refurb the property Credit: Hammer Price Homes Attached to a grand Victorian house, the property, known as “The Cottage”, was once a children’s nursery but is now suffering with dry rot and needs a new roof. People have been shocked by the price it sold for – a whopping £1.2million. Sign up for the Money newsletter Thank you! However, the new owners will live in a celebrity-filled part of London with Helena Bonham-Carter, Liam Gallagher, Gwyneth Paltrow, Stephen Fry and Jonathan Ross all having called the area home in recent years. The mini pad lies in Lyndhurst Road in Hampstead and initially went up for sale in May 2023 with a reserve price of £785,000. Despite needing a new roof, the home sold for a whopping £1.2m Credit: Hammer Price Homes The property boasts of a large garden and two floors Credit: Hammer Price Homes But the hammer fell at £1,054,500 when it was auctioned off by Wigan-based Hammer Price Homes. However two years later it was auctioned again – with the only change being a higher reserve price and the fact planning permission had been granted to demolish and rebuild it. It currently has 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. It also boasts a huge garden for the area, although it too is in desperate need of work with retaining walls needing structural work. Most read in Money It has a spacious entrance hall, kitchen and living room Credit: Hammer Price Homes The home is suffering with dry rot and has asbestos Credit: Hammer Price Homes However every room has water damage with stained walls – and even a hole in the ceiling on the first floor. Outdoor pictures seem to show lead hanging from the roof, which may be causing water ingress. According to Land Registry records, the £1.2million sale went through in January this year after it was re-auctioned by London firm McHugh & Co Auctioneers. It was bought by a company called Lyndhurst Build Ltd, co-owned by Sebastian Sandler and Zev Benjamin. Sandler, 50, is also a director at XUL Architecture Ltd, which has submitted plans to substantially renovate the home to create a three-bedroom family dwelling using a “restorative approach.” Its new owners decided that there was enough architectural merit to keep the existing brickwork and simply add a new first floor and second floor mansard roof as well as a rear extension to add living space. In a planning and heritage statement, the architecture firm said: “The existing building is in poor condition in its current state and requires substantial remedial work to transform it back into a habitable property. “The building has dry rot and widespread damp. Asbestos is also present and will require removal. The existing windows, roof, and guttering are in poor condition and require complete replacement. “The proposed scheme involves the refurbishment of the existing building, retaining the majority of the historic building fabric, and the addition of a second floor with dormer windows to the front and rear elevations.” In its initial auction sale, Hammer Price Homes described it as “charming” while still admitting: “Due to the general condition, the property is deemed unmortgageable and for this reason we open the auction to cash buyers only with 60 days to complete from draft contracts being received.” The listing went on: “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. “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 not be possible to obtain lending on the property through a traditional mortgage.” One Tweeter saw the mammoth reno job when the property was initially auctioned and Tweeted: “One bathroom. Two bedrooms. 700 sq ft (most of it uninhabitable). £785,000. London is broken.” One responded jokingly: “How did they manage to get 24 pictures of it worth sharing?!” Another replied: “As well as the renovation, I wonder if you can structure your mortgage to cover the cost of an exorcism!” And another said: “Sadly, this doesn’t surprise me. I see many properties like this, which are being advertised at eye-watering prices, across the country. “Underlines the need to deal with our growing housing crisis.” 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.” Comment now