A vast home in London has become the world's most expensive flat after selling for £27million.

But the price provides only a shell. The new owner will still have to spend up to £7million having it fitted out to "eight-star" standard.

And if the new owner wants to park their car, that will cost an additional £100,000 for each space in the underground car park which features number plate recognition technology.

The 17,000sq ft flat was bought by a British financier, according to developers Candy and Candy. The sale price works out at about £1,600 per sq ft.

The property, in Manresa Road, Chelsea, is part of a site bought from Formula One boss Bernie Ecclestone in 2002.

Five of the 15 flats have already sold, even though they will not ready for another 18 months.

The development in the 19th century building is proving popular because it is rare to get so much space on one level, say the developers.

Camilla Mabbott, marketing director at Candy and Candy, said: "Lateral space is the buzz word in property. People need to build upwards in cities.

"To have all your rooms on the one level is in big demand, but there's not much supply."

The flat, almost twice as big as the ballroom at the Dorchester hotel, has enough space for up to eight bedrooms as well as staff quarters.

Its ceilings are 22ft high and it comes with underfloor heating and an air purification system. There is also planning permission for a mezzanine level.

The previous record for a flat sale was held by a businessman who paid £24.6million for an apartment in the Time Warner building in New York.