Home Residential Property Running a millionaire's home in central London? That'll be £250k a year please

Running a millionaire's home in central London? That'll be £250k a year please

by LLP Editor
13th Dec 13 11:35 am

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.”

You need to read:

Hampstead home

Forget One Hyde Park! Check out London’s £35m+ luxury homes on sale

Get your business and talent recognised – enter the London Loves Talent Awards by 24 December

Judged by Tim Campbell, Will King, Terry Morgan CBE, Amit Bhatia, Matthew Hancock MP, June Sarpong & more

London Loves Talent Awards promo box for articles

Leave a Comment