A long-standing client of Portway Finance owned a pub in South London and had recently obtained planning permission to convert its upper floors into nine residential flats, including adding a mansard roof and terraces while retaining the pub on the ground floor. The projected Gross Development Value (GDV) of the completed project was £3,900,000.


The client faced several significant challenges:


• They required maximum lending from day one to release cash for reinvestment into another project where costs had overrun.
• The property’s continued commercial use as a pub upon completion required specific lending expertise due to the mixed-use nature of the property.
• The client had adverse credit events within the last 12 months, complicating their borrowing capability.


Portway Finance’s deep understanding of the client’s needs and strong lender relationships enabled us to secure an exceptional financing arrangement. We identified a bank development lender experienced with mixed-use schemes and willing to fund at a higher Loan-to-Gross Development Value (LTGDV) than typically available in the market. This lender uniquely agreed to consider 100% of the commercial value of the pub in the overall GDV calculation, significantly enhancing the borrowing facility. In contrast, most lenders would typically attribute 50-65% of this value. 

Crucially, they also agreed to release the required funds on day one for use in the client’s other ongoing project.
Portway Finance successfully negotiated development funding at 69% LTGDV, releasing £1,500,000 on day one at competitive interest rates. This funding arrangement not only fully covered the development costs but also provided the financial flexibility needed to manage other investment priorities.

The lender also demonstrated further confidence in the client’s portfolio by expressing interest in financing another upcoming project, pending additional planning permissions. This strategic financial support from Portway Finance has allowed the client to expand their property development activities and manage their financial commitments effectively, ensuring the continued growth and success of their investment endeavours.