When it comes to millionaires splashing their cash, buying London homes tops their list.
But running those homes? That’s another story.
Research by property agents Beauchamp Estates has found that the day-to-day running costs of a millionaire’s home in central London, including heating bills, cleaning, security and insurance, are more than £250,000 a year.
Here’s the breakdown of the costs.
Water and energy bills – £20,000 a year
Security costs – £50,000 a year
Cleaners – £400 a week, £20,000 a year
Live-in housekeeper – £30,000 a year
Insurance premiums (based on 0.25% of property value) – £67,250 a year
General maintenance and service charges – £60,000 a year
A part-time gardener – £500 a month, £6,000 a year
Council tax in Kensington & Chelsea – £2,143 a year
The report suggests the cost of buying and running a large London house means even multi-million divorce settlements may not cover the desired lifestyle.
Gary Hersham, managing director of Beauchamp Estates, said that running London’s plush homes can be so expensive that even multi-million pound divorce settlements aren’t enough to make up for costs.
“In the recent divorce case of Scot and Michelle Young, Michelle was seeking £300m, of which £25m was to be spent on a Belgravia mansion.
“Based on our findings, a lump sum of £31.98m would have provided her with enough to acquire a London mansion and related lifestyle for 10 years. In the end she got £20m.”