Example Westminster Development Finance Scenarios
Illustrative examples of the type of development finance we structure for property developers in Westminster and the surrounding area — not completed transactions.
Mayfair Luxury Residential Conversion
Mayfair, W1
Funding for the conversion of a four-storey Mayfair townhouse from commercial office use into three ultra-prime residential apartments, each with high-end specification throughout.
Facility
£4.2M
LTC
65%
Term
12 months
GDV
£7.8M
Challenge
The property was a Grade II listed former office building on a prestigious Mayfair street, requiring listed building consent and the careful integration of modern luxury amenities within a protected heritage envelope. The developer needed to fund both the acquisition and the extensive conversion works, with a tight programme to capitalise on market demand. Several mainstream lenders had declined due to the listed building status and the specialist nature of the works.
Solution
We structured a £4.2M development finance facility at 65% LTC with staged drawdowns aligned to the build programme. Our lending panel's familiarity with Mayfair's listed building requirements and the Grosvenor Estate's approval process enabled us to move quickly on the credit decision. We arranged a pre-start drawdown to cover acquisition costs and professional fees, with subsequent tranches released against surveyor certifications.
Outcome
The project completed on schedule at 12 months, with all three apartments sold off-plan prior to completion at a combined GDV of £7.8M. The developer achieved a profit margin of 22% and has since instructed us on two further Mayfair schemes. The successful delivery also strengthened their relationship with the Grosvenor Estate for future opportunities.
Victoria Mixed-Use Development
Victoria, SW1
A substantial development finance facility for the ground-up construction of a mixed-use building comprising ground-floor retail, first-floor office space and 12 residential apartments on the upper floors in the heart of the Victoria regeneration area.
Facility
£8.5M
LTC
70%
Term
18 months
GDV
£14.2M
Challenge
The developer had secured planning consent for a new-build mixed-use scheme on a cleared site within the Victoria Opportunity Area. The project required significant upfront infrastructure investment including piling and complex basement works. The mixed-use nature of the scheme and the £8.5M facility size meant many lenders viewed it as too large or too complex. The developer also needed certainty on funding to meet contractual deadlines with the building contractor.
Solution
We arranged an £8.5M development finance facility at 70% LTC through a specialist lender experienced in mixed-use central London schemes. The facility included a day-one land drawdown, followed by monthly construction drawdowns monitored by a RICS-accredited quantity surveyor. We negotiated a tailored drawdown schedule that front-loaded funds for the intensive piling and basement phase, smoothing cash flow for the developer.
Outcome
The scheme completed in 17 months — one month ahead of programme. The retail and office units were pre-let to strong covenant tenants, while 10 of the 12 apartments were sold off-plan. The combined GDV reached £14.2M, delivering a profit of over £2M to the developer. The scheme contributed to the ongoing regeneration of the Victoria area and demonstrated the viability of mixed-use development in the district.
Marylebone Boutique Hotel Refurbishment
Marylebone, W1
A fast-completion bridging loan to fund the acquisition and refurbishment of a period building on a Marylebone side street for conversion into a 14-room boutique hotel with ground-floor restaurant.
Facility
£2.8M
LTV
72%
Term
9 months
GDV
N/A
Challenge
The borrower had identified an off-market opportunity to acquire a former medical practice on a sought-after Marylebone street, with the intention of converting it into a boutique hotel with a destination restaurant. The vendor required exchange and completion within three weeks, ruling out traditional development finance timelines. The borrower needed a bridge to acquire the property and commence initial works while longer-term hotel finance was arranged.
Solution
We delivered a £2.8M bridging facility at 72% LTV with completion in just 8 working days from heads of terms. The loan was structured as a 9-month term with an option to extend for a further 3 months, giving the borrower flexibility to secure their long-term refinance. We worked with a specialist hospitality valuer to ensure the security was properly assessed, and our legal team coordinated closely with the vendor's solicitors to meet the compressed timeline.
Outcome
The borrower completed the acquisition on schedule, securing the off-market property at a significant discount to its potential value. Initial strip-out and enabling works commenced immediately, and the borrower successfully refinanced onto a long-term hotel finance facility at month 7. The boutique hotel opened 14 months after acquisition, achieving average room rates 25% above original projections due to the quality of the design and Marylebone's strong hospitality market.