A billionaire from East Asia has bought a £21.5 million Belgravia mansion with a rich diplomatic history as a London ‘trophy home‘ in a sale rushed through ahead of a rise in the stamp duty surcharge paid by overseas buyers.
Constructed in 1900-1901 by architects Eustace Balfour and Hugh Thackeray Turner, Lygon Place is an Arts and Crafts masterpiece.
With its distinctive red-brick façade, Portland stone bay windows, and ornate gabled roofline, it was originally designed as an elite private residence but was acquired by the Italian government to serve as its London embassy in 1923 before becoming a diplomatic residence for key guests in 1931. After the Second World War, it became the Defence Attaché’s office and housed Italian military representatives for several decades.
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Charles Lloyd, director & head of Mayfair & Belgravia sales at Beauchamp Estates, said the buyer was drawn to its ‘prestigious location, the high-level security, and the mansion’s illustrious history’.
Lloyd George and Wallis Simpson were among the famous figures to have walked through the property’s doors in its previous incarnations.
The building’s transition back to private ownership began in 2005, with a major residential conversion completed between 2009-2011, restoring the mansion’s grandeur while adding modern amenities.
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A luxurious acquisition spurred by tax changes
Chancellor, Rachel Reeves, unveiled plans for a new 2-3 per cent increase in stamp duty in the UK in her 30 October Budget, a levy that took effect from 1 November.
The top rate of SDLT – on properties of $1.5 million or more – for a non-resident buying a residential property in England or Northern Ireland can now be as high as 19 per cent.
The Lygon House deal, managed by Beauchamp Estates and Knight Frank, was fast-tracked to avoid the new tax hike, with both the vendor and purchaser legal teams working ‘day and night’ to push the sale through in just a week.
Paul Finch, director & head of new homes at Beauchamp Estates, said the sale of Lygon Place was ‘part of a wider trend in Belgravia, with trophy homes increasingly popular among Far East investors’.
Despite the stamp duty rises, Finch said ‘London remains competitive on property transaction and tax costs compared to cities like New York, Hong Kong, and Singapore’.
Against the clock
Other London estate agents have reported a flurry of sales after the announcement.
Chestertons revealed that the 2 per cent increase on stamp duty for second homes announced as part of the autumn Budget triggered an immediate response from buyers who rushed to finalise their property purchases before midnight when the higher tax came into effect.
Robert Sturges, regional director for central and prime central London at Chestertons, said the firm ‘moved heaven and earth to assist buyers of second homes that were in a position to finalise their purchases to exchange contracts before the midnight deadline’ on Wednesday.
‘Chestertons was involved in over five rapid multi-million-pound sales in Kensington, Hyde Park, Notting Hill and Chelsea. In each scenario, the buyers were eager to speed up the process to exchange contracts within a matter of a few hours, thereby getting ahead of the almost immediate application of the higher rate of stamp duty,’ he said.
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Mansion features: A secure, opulent retreat
The Lygon Place mansion offers high security, a key appeal to the buyer, with a gated private driveway and a manned porter’s lodge. The six-bedroom property features three reception rooms, a family kitchen and breakfast room, a private cinema, a fitness studio, and ensuite bedrooms. The mansion also boasts direct access to an underground car park with two reserved spaces, 24-hour security, and separate staff quarters.
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