Buy a flat on the UK's most expensive street for just £450,000 (but there's a catch)

Eaton Square is the most expensive street in the UK, according to Lloyds Bank, with an average house price of £16,944,000 - Simon Dawson/Bloomberg

The most expensive street in the UK is Eaton Square in London's Belgravia, where the average house price is £17 million, according to Lloyds Bank. 

However, a property on this exclusive enclave has come on the market for just £450,000. 

The apartment is on the south-west corner of the square and covers 1,574 sq ft. 

The three-bedroom flat on Eaton Square is on the market for just £450,000 Credit: Alex Winship Photography

The three-bedroom flat has a large reception room, measuring 20ft by 20ft, plus a separate dining room, a small kitchen and two bathrooms. It also has a private balcony with views over the peaceful gardens of Eaton Square.

It is on the third floor of the building, which has smart common parts, a lift and a porter.

However, there's a catch: the flat, which is need of renovating, has just 2.5 years remaining on its lease. 

The apartment has a private balcony with views over the peaceful gardens of Eaton Square

Winkworth, the estate agency marketing the property, said it would cost around £1.4 million plus costs to renew the lease for up to 20 years. 

It could then be worth around £2 million, the agency estimated. 

Annual costs associated with this property include £20,000 in annual service charge, £2,124 in council tax and £998 in ground rent. 

The flat has a large reception room, measuring 20ft by 20ft, but is in need of renovation

However, the stamp duty payable on this flat at £450,000 would be just £12,500, or £26,000 if it was purchased as an additional property. 

That's a steal compared to the stamp duty payable for the average house price of £16,944,000 on this street, which would cost £1,947,030 (or £2,455,350 at the extra rate).

Andrew Mason, mortgage director at Lloyds Bank, said: "Eaton Square, and prime central locations such as Westminster, and Kensington and Chelsea, have established reputations as exclusive addresses.

The flat is on the third floor of the building, which has smart common parts, a lift and a porter

"Not only do these streets possess a rich historical legacy, but properties located there are some of the most prestigious in the world and are close to superb local amenities in Knightsbridge, Sloane Street and Chelsea, as well as the capital’s business and entertainment districts."

Lloyds Bank based this research, published last December, on the number of transactions in a rolling five-year period with a minimum of seven sales.