Luxury Residential Development
Kensington, London
£32M development finance for conversion of Grade II listed Victorian mansion into 8 luxury apartments in prime Kensington location. Specialist heritage property lender secured in 5 weeks.
The Challenge
Experienced developer acquired Grade II listed Victorian property in Kensington for £18M, requiring additional £32M for sympathetic conversion into 8 luxury apartments. High street banks declined due to listed building complexities, planning conditions requiring heritage restoration, and £4.8M average price point exceeding standard BTL criteria. Project required specialist conservation architects and craftsmen, extending development timeline to 24 months.
Our Solution
Sourced specialist heritage property lender with extensive listed building experience. Structured £32M senior facility at 70% LTGDV with 24-month initial term and two 6-month extension options. Lender comfortable with qualified conservation architect reports and £40M+ GDV supported by comparable Kensington sales. Funds released in 8 stages tied to QS certification and heritage compliance milestones. Negotiated interest roll-up for first 12 months to preserve cash flow during intensive restoration phase.
The Result
Funding completed in 5 weeks enabling immediate commencement. Restoration completed to exceptional standard, receiving English Heritage commendation. All 8 apartments sold off-plan during construction at average £4.9M (2% above target GDV). Final unit achieved £5.4M, providing profit on GDV of 22%. Developer repaid facility 4 months early. Client has since completed three additional heritage conversions with same lender.
Key Takeaways
- Specialized lender expertise in development finance was critical to success
- Completed in 5 weeks from initial consultation to funding
- Total facility size of £32M structured to meet client needs
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