top of page

ERG Private Finance Ltd - trading as ERG Finance is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority: FCA Number 460421. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Buy to Let mortgages and Commercial Lending are not usually regulated by the Financial Conduct Authority.

​

​

Grade II Listed Hotel Conversion, Ludlow, Shropshire


Specialist Mortgages - Ludlow Shropshire

The Scenario

Our clients were looking to repurpose a striking Grade II listed building in one of the most prestigious parts of Ludlow, Shropshire. After many successful years’ operating it as a boutique hotel, they made the decision to retire and convert the property into five high-specification apartments and two townhouses.

 

Located just moments from Ludlow Castle, the site offered exceptional development potential, subject to listed building consent and careful heritage-sensitive design.


The Strategy

To facilitate the development, the clients set up a Special Purpose Vehicle (SPV) to acquire the asset and provide a clean corporate structure for funding and delivery.


ERG Finance was engaged to arrange a tailored development finance facility, structured around the following key requirements:


  • Day one release of £1,000,000 to repay an existing mortgage

  • 100% of build costs (£1.1 million) released in arrears

  • 18-month term to allow for completion and sales

  • Delivery via a fixed-price JCT contract with a professional project manager overseeing the build


Planning & Exit

Full planning permission and listed building consent had already been secured for conversion into seven residential units, including apartments, townhouses, and on-site parking.


We provided full support through development appraisal modelling, lender engagement, and structuring of the funding facility. The exit strategy was based on a projected Gross Development Value (GDV) of £4.64 million, with all units intended for open-market sale upon completion.



Conclusion

Despite having no prior development experience, our clients were able to proceed with confidence. By presenting a well-structured proposal, supported by a fixed-price JCT contract and experienced project management, we secured funding with a lender comfortable backing first-time developers under the right conditions.

 

The finance terms we arranged were highly competitive, with 100% of build costs funded and minimal upfront equity required beyond the refinance.


This case highlights our ability to deliver bespoke solutions on complex heritage projects, matching the right lender to the right structure, and guiding our clients every step of the way. From initial modelling to credit approval, ERG Finance ensured the project was fully funded, professionally managed, and positioned for a profitable exit.

 
 
bottom of page