£1m
Residential median (exit context)
Greater London
Commercial Property Development Finance in Kensington
Senior debt, stretch senior, mezzanine, JV equity, stabilisation and development exit finance for commercial schemes in Kensington.
Written by Matt Lenzie Founder & Principal Broker · 25 years arranging development finance
1,104
Residential sales, 12 months
6
New-build sales
396%
New-build premium
If you are developing commercial property in Kensington, the right facility is rarely the cheapest headline rate. It is the one that funds the build to completion, holds through letting and sale, and leaves day-one equity for your next site. We arrange commercial property development finance across Kensington and the wider Greater London market, from senior debt through to JV equity.
We underwrite a Kensington scheme on its commercial fundamentals, with the local residential market as a gauge of exit liquidity for any residential element. That market is steady, around 1,104 residential sales in the past year at a £1,017,500 median, which helps test the values for the homes in a mixed-use or conversion scheme.
Development finance structures for Kensington schemes
We arrange the whole capital structure for Kensington commercial schemes. Senior development finance funds the bulk of the build, typically to 65 to 70 percent of cost and 60 to 65 percent of gross development value. Stretch senior and mezzanine finance lift leverage when the appraisal supports it, reducing the equity you commit. JV equity fills the remaining gap for developers scaling beyond their own balance sheet. For operational schemes that let up or trade after completion, such as student accommodation, care homes, hotels or self-storage, stabilisation finance carries the asset from practical completion through to stabilised income. Once the scheme is stabilised or sold, development exit finance refinances it onto cheaper money while units sell or let, releasing equity for the next site in Greater London.
Commercial development we finance across Kensington
Each commercial asset class is underwritten on different tests by different lenders, and we arrange finance for all of them in Kensington and across Greater London. That covers student accommodation and offices, warehouses and logistics, care homes and healthcare, retail, hotels and leisure, industrial and mixed-use schemes, and the higher-growth classes of self-storage, data centres and life sciences. Knowing which lender backs which sector here, and at what leverage, is the work we do before a scheme ever reaches a credit committee.
Finance we arrange for Kensington schemes
What the Kensington market means for your appraisal
Kensington sits at the premium end of the Greater London market, where higher values support higher-specification commercial schemes. Strong end values can carry higher finance costs and justify stretch senior or mezzanine leverage, though lenders will want a disciplined cost plan and a credible exit at the values assumed.
Residential market depth as exit context
Residential sold-price depth is one input a development lender uses to gauge exit liquidity, particularly for the residential element of mixed-use, build-to-rent and conversion schemes. Kensington recorded around 1,104 residential sales over the past year at a median of £1,017,500, which makes the local market steady. New-build stock carries a premium of 396% over existing stock here. Commercial values turn on covenant, yield and sector demand, which we assess scheme by scheme.
This residential mix is exit context for the homes within a mixed-use or conversion scheme. It is not a guide to commercial values, which are sector and covenant driven.
Residential sold price by type (Kensington)
| Detached | £4,700,000 |
| Semi-detached | £6,539,875 |
| Terraced | £3,250,000 |
| Flat / apartment | £870,000 |
Source: HM Land Registry residential price-paid data, last 12 months.
Recent price trend
| Quarter | Median | Sales |
|---|---|---|
| 2024-Q2 | £1.3m | 595 |
| 2024-Q3 | £1.2m | 612 |
| 2024-Q4 | £1.2m | 624 |
| 2025-Q1 | £1.1m | 702 |
| 2025-Q2 | £1.3m | 422 |
| 2025-Q3 | £1.1m | 426 |
| 2025-Q4 | £923k | 290 |
| 2026-Q1 | £879k | 172 |
Evidence
Recent residential sales in Kensington postcodes
A sample of recent residential transactions across W11, SW3, W10, SW10, W14, exit context for the residential element of a scheme rather than a guide to commercial values.
| Address | Postcode | Type | Price | Date |
|---|---|---|---|---|
| FLAT 51, PRINCES HOUSE, 52, KENSINGTON PARK ROAD | W11 3BN | Flat / apartment | £600,000 | 25 March 2026 |
| FLAT 2, GROVE HOUSE, CHELSEA MANOR STREET | SW3 5QB | Flat / apartment | £670,000 | 23 March 2026 |
| GROUND FLOOR FLAT (EAST), 92, CAMBRIDGE GARDENS | W10 6HS | Flat / apartment | £535,000 | 23 March 2026 |
| FLAT C 1ST FLOOR, 105, FINBOROUGH ROAD | SW10 9DU | Flat / apartment | £605,000 | 20 March 2026 |
| FLAT D, 22A, ST ANNS VILLAS | W11 4RS | Flat / apartment | £650,000 | 20 March 2026 |
| 6, OAKWOOD COURT | W14 8JU | Flat / apartment | £3,467,500 | 20 March 2026 |
| 22, CADOGAN PLACE | SW1X 9SA | Other | £12,000,000 | 20 March 2026 |
| FLAT 25, CRANMER COURT, WHITEHEADS GROVE | SW3 3HN | Flat / apartment | £1,700,000 | 18 March 2026 |
| FLAT 7, TEVIOT HOUSE, 26, ORMONDE GATE | SW3 4EX | Flat / apartment | £1,100,000 | 18 March 2026 |
| 1, CLAREVILLE STREET | SW7 5AJ | Terraced | £1,950,000 | 18 March 2026 |
FAQ
Commercial property development finance in Kensington: common questions
How much commercial property development finance can I raise in Kensington?
Most senior lenders fund up to 65 to 70 percent of total cost, capped at 60 to 65 percent of gross development value, with stretch senior or mezzanine lifting that toward 85 to 90 percent of cost on a strong scheme. The Kensington exit market, currently steady, informs the gross development value a lender will accept.
Which lenders provide development finance in Kensington?
We hold more than one hundred lender relationships across banks, challenger banks, debt funds and private capital. The right lender for a Kensington scheme depends on the sector, the leverage you need and your track record, and we shortlist the desks most likely to back it across Greater London.
How does the Kensington residential market affect a commercial scheme?
It matters mainly as exit context for the residential element of mixed-use, build-to-rent and conversion schemes. HM Land Registry records a £1,017,500 residential median in Kensington over the past year across roughly 1,104 sales, with flats around £870,000. Commercial values, by contrast, turn on covenant, yield and sector demand, which we assess scheme by scheme.
Do you fund commercial development beyond Kensington?
Yes. We arrange commercial property development finance across the whole of Greater London and the wider UK, with the same approach: model the capital stack, match the scheme to the lenders that back its sector, and negotiate terms on the developer's behalf.
Funding a scheme in Kensington?
Send us the outline and we will come back with a view on fundability and likely terms within one working day.