Real life within the walls of the past
Castles and estates are a special segment in the global real estate market. According to Renata Matyash, head of the overseas real estate department at IntermarkSavills, each castle is unique and possesses a certain historical aura, which attracts future owners. Although Elena Norton, head of the overseas luxury real estate department at Knight Frank, believes that exclusive properties, particularly castles, are purchased for another reason – 'it is a matter of prestige and improving quality of life.' 'Western Europe, namely France, Italy, Great Britain, Germany, occupy leading positions in the ranking of countries with the richest selection of such properties, and this is primarily due to the historically established lifestyle of these states,' adds Svetlana Skotnikova, consultant of the overseas real estate department at Kirsanova Realty. Elena Norton highlighted two main areas where our compatriots primarily purchase historical real estate: France and Scotland. Moreover, in these countries, the attitude towards the land plots on which the castles are located differs: in France it may be small, while in Scotland it is typically hunting grounds with lakes for fishing.
In 2006, English newspapers vied with each other to write about a Russian businessman who bought a castle in Great Britain, in the locality of Nancledra (a region that became known worldwide thanks to writer Daphne du Maurier, author of the novels 'The Birds' and 'Rebecca', adapted for film by Alfred Hitchcock, the action of which takes place here). Although in reality the number of our compatriots – owners of exclusive real estate – has long been in the dozens. It is just that many prefer to conceal the fact of purchasing a castle or villa. Realtors and lawyers involved in deals strictly protect the interests of clients, so information about purchases is very scarce.
A castle is by definition historical real estate, so it is purchased by individuals either interested in antiquity or ambitious by nature – constantly striving to surprise and sometimes shock outsiders with their actions. According to Svetlana Skotnikova, it is necessary to divide this segment of the real estate market in accordance with the client's interests: some are interested in a castle built in the 11th century, while others are interested in an estate directly related to a famous family, to famous past owners. As an example of the present day, we can cite the sale of the MacDonald family estate in Santa Fe (USA). Or another, again American example, the home of Sophia Loren in California. 'But it is impossible to call our compatriots' interest in this type of real estate constant or to identify any patterns. After all, this is a unique product on the market; we can only speak of one-off requests, without highlighting trends,' notes Svetlana Skotnikova.
It should be emphasized that private estates are a broader segment of real estate. As a rule, for such offerings, not only the property itself is significant, but also the land plots. For example, in Italy – plantations planted with olive trees, in France – lands under vineyards and gardens. According to Renata Matyash, English estates can be conditionally divided into two categories: modern new spacious houses with a large land plot surrounded by forest, or ancient estates also located in beautiful green areas with good views. In the first case, a comfortable home is purchased that can be lived in immediately after the transaction. In the second, 'historical walls' that need to be repaired for a long time and made habitable.
The practice of international agencies working with exclusive offerings shows that quite often historical real estate is acquired not for personal residence, but for the purpose of profitable development of one's own business for organizing hotels, company residences, private clubs. According to Anna Konchakova, head of the company Tsars & Stars, unlike buying a home 'for oneself,' purchasing real estate for organizing a business that generates good income directly depends on how well the location is chosen. Therefore, first of all, offerings in European capitals and major cities – London, Paris, Geneva, Milan, Barcelona, Madrid, or their suburbs – are interesting.
According to Renata Matyash, offers for properties with an interesting history appear on the market constantly. For compatriots wishing to purchase real estate in historical places, one can offer, for example, Seaton Castle located in Scotland, built in 1790. In the Middle Ages, the palace of the Earls of Winton stood on its site; in 1715 it was seized along with the land by the royal family. Then the castle fell into disrepair until it was bought by one of the royal officials, who invited the famous architect Robert Adam to develop a new project, which was successfully implemented on the site of the half-ruined palace.
For lovers of mysticism and ghosts, options can also be selected. For example, a 17th-century manor located in North Wales (England), with the ghost of Laura, wife of the Earl of Lisburne, who lived in 1836-1888. Incidentally, Laura Gertrude Burnaby was a cousin of Fred Burnaby, a famous explorer whose portrait by artist Tussaud is displayed in the National Gallery in London. Legends say that Laura's spirit wanders the upper floors of the manor in search of her lost wedding ring. Currently, the manor is not just a house with an intriguing history, but also a profitable business. It consists of five apartments that are rented out to those wishing to spend a vacation in this remarkable place. Also in the 'market asset' are a castle in the Dordogne and a property located 20 km from Paris, famous for hosting scenes from the film 'The Da Vinci Code'.
In northeastern Italy, near the city of Udine, there is an ancient knight's castle. Built before the 15th century, it has fully preserved its architecture. Currently it consists of five independent apartments, each with its own fireplace and bathroom. In the main building, it is possible to set up a personal study in the old library with genuine antique furniture, as well as a reception area in the spacious hall. The castle has been fully restored using valuable materials (ceramics, finishing natural stone, wood). The second, separate building is offered for use as a residence, office space or a hotel.
One of the castles sold as a hotel is in Germany, in the Harz National Park, at an altitude of 560 m. The area of the surrounding territory, covered with dense forest, is 27,335 sq m, the usable living area of the castle is 5,690 sq m (that is 90 rooms). The place has been recognized by German authorities as an 'air spa'. On the estate grounds there are also about a dozen buildings, two of which are villas.
The second castle in Germany is sold as an operating business. Construction of the palace began in the 10th century, and the latest structures date to the 16th century. In 1996 and 2001 it was renovated and adapted as a hotel. According to the owners, the current rental income is €240,000 per year. The property includes 44 rooms and 8 suites, restaurants, a conference hall and a helipad. There is a garden, parking. Important detail: the authorities have approved a small reconstruction of the building.
A deal with history
Buying exclusive property is a complex procedure, so experts advise paying attention to the laws in the country where it is purchased. For example, the authorities of the Czech Republic and Slovakia are now very interested in selling castles even for small sums of money, thereby saving them from ruin. In England, historical property is treated with great care, so ancient buildings cannot be restored; only internal repair work is allowed. 'Restoring a castle is a very troublesome business, not so much financially as in terms of approvals,' notes Renata Matyash. In the future, the castle owner will be obliged to maintain it in proper condition, which will require a separate budget item, hardly initially foreseen by the new owner. According to Svetlana Skotnikova, replacing or installing utilities can cause serious problems. To obtain permission for work, not only large sums of money but also a lot of effort in collecting permitting documentation will be required.
A significant nuance is that under the laws of most Western countries, historical property is accessible to tourists. Therefore, regardless of the new owner's wishes, he has no right to prevent tourists from viewing the landmark. It is especially difficult for owners of properties located on tourist routes. Difficult transport links (the castle is in the mountains, at a considerable distance from main roads) usually mean that tourists will rarely be uninvited guests.
The transaction support procedure itself is not complicated; for its processing in European countries, intermediaries charge 5-8% of the total offer price. According to existing practice, in most cases the transaction is registered to a company rather than an individual. 'Therefore, the client only needs to contact a professional lawyer who will handle the entire transaction and resolve all possible problems,' notes Svetlana Skotnikova.
A separate topic is the registration of ownership. The company Tsars & Stars noted that, for example, France offers a guarantee of full century-long ownership of the purchased property, while in the UK the transaction is structured as a long-term lease. 'When buying castles, in addition to the procedure being clearly structured and conducted with the direct involvement of a lawyer specializing in property acquisition in the specific country of the object, it is necessary to hire an engineering and technical specialist before the purchase to conduct a preliminary assessment of the condition of utilities,' advises Elena Norton.
How much does a castle cost for €1?
Prices for historical property are high. Even ordinary luxury housing without architectural and historical value has become much more expensive worldwide in recent years. The Wealth Report study (2007) of the most expensive residential property in 70 cities worldwide, compiled by Knight Frank and a division of the American financial group Citigroup, showed that London ranks first in terms of prices, where a square meter of housing costs €36,800, second is Monaco (?35,000 per sq m). By the way, 59% of all expensive property in London belongs to foreigners.
According to Renata Matyash, the price range for historical property varies greatly: since castles are one-off items, the price is always individual. For example, in the Czech Republic and Slovakia, where there are many half-ruined castles that are practically uninhabitable, you can buy a castle for €400,000, while in England or France from 1.5 to 150 million pounds sterling. The aforementioned castle near Udine (Italy) is sold for €3.1 million. The estate in Aquitaine (France) is listed for €2.8 million. The mansion 'with Laura's ghost' in North Wales (UK) is offered for 1.5 million pounds sterling, and the neighboring building for 500,000 pounds sterling. 'In France, it is possible to acquire a castle for reconstruction for less than €1 million, although this is rather an exception. In Scotland, castle prices start from €2 million,' notes Elena Norton.
According to IntermarkSavills experts, the price consists of several factors, but the main one is the condition of the property. Therefore, sometimes castles are offered for a symbolic sum of $1 or €1, but carrying out restoration work is a mandatory part of the contract. For example, in Slovakia, the 14th-century Vigľaš Castle was sold for 1 crown, provided that the future owner would definitely restore it. According to preliminary estimates, the restoration budget barely fit into $3 million. But in Poland, for instance, the state returns 23% of the funds invested in the restoration of a dilapidated property.
Yevgenia LEBEDEVA.
«Real Estate Digest»