£15m per month for Buckingham Palace mortgage

£15m per month for Buckingham Palace mortgage repayment

The latest research by specialist property lending experts, Octane Capital, reveals just what it would take in terms of a monthly mortgage repayment for homebuyers looking to purchase one of the King’s royal residences, with Buckingham Palace ranking top with a full monthly mortgage repayment of £15m.

To mark the coronation of King Charles III, Octane Capital has analysed the current market value of four royal residencies based on data from a range of sources to calculate what size mortgage would be required to buy them with rates as they are today.

Buckingham Palace
Buckingham Palace in central London is probably the most famous home in the world. As such, if it were to be sold today, it would have a remarkable estimated value of £3.9 billion. To put this into context, with a current UK average house price of £287,506, this is enough to buy 13,661 homes.

This price means that a typical 25% deposit for Buckingham Palace would come to £982 million, so the mortgage itself would have to cover £2.9 billion.

With the current average rate for a standard 25-year 75% LTV mortgage standing at around 3.78%, the monthly repayments on a loan this size would come to £15.2 million.

If you’re not one of those lucky enough to be able to afford such a price, perhaps you’ll be better off buying one of the royal family’s non-London residencies where, surely, the prices will be more reasonable.

Windsor Castle
Windsor Castle in Berkshire has an estimated market value of £595.5 million. The 25% deposit will, therefore, cost £149 million with the remaining £447 million covered by a mortgage.

At the current rate, the monthly repayments for this mortgage would come in at £2.3 million.

Sandringham House
Sandringham House, the royal holiday home in Norfolk, is worth an estimated £58.5 million, a snip compared to the last two properties.

But even at this humble price, you’re still looking at a deposit of £14.6 million and mortgage worth £43.9 million.

This means each monthly repayment will come to £226,340.

Balmoral Castle
Balmoral Castle in Aberdeenshire, Scotland, is worth an estimated £60.3 million

The 25% deposit will, therefore, cost £15.1 million and the mortgage will cover the remaining £45.2 million.

Each monthly repayment will come to £233,255.

CEO of Octane Capital, Jonathan Samuels, commented:

“The royal family possesses one of the most valuable and enviable property portfolios in the world, with buildings such as Windsor Castle dating back as far as 1070.

They are, in many ways, priceless, but were they to enter the market, you would need the wealth of a nation to purchase one, especially if you’ve got your heart set on Buckingham Palace.

It’s all a bit of fun, but it is truly astonishing to see how much money the Royals are sitting on with a portfolio that stretches far beyond these four examples.”