Structuring warranty cover for a 9-apartment airspace development
Protecting developments today. Powering the communities of tomorrow.
Project Overview
Location: North London
Development: Airspace conversion — 9 apartments across 3 new storeys above existing building
Development type: Build to rent
GDV: £4.5 million
LBB Consultant: Matt Percival
Our client is a London-based developer whose work typically centres on conversion and refurbishment projects. When they came to LBB, they were venturing into territory that was less familiar ground: a structural warranty for a new-build airspace development, a scheme type with specific insurance characteristics that reward careful handling.
The project in North London involved constructing three additional storeys above an existing building to create nine new apartments, bringing the structure to six storeys in total.
The client’s primary driver was their development finance partner, who required a properly structured warranty as a condition of funding. With conversion and refurbishment being their more familiar territory, the developer had limited prior experience of navigating the structural warranty market for a scheme of this type. They needed a broker who could take ownership of the process and handle it correctly from the outset.
Alongside the warranty, a separate issue had also been holding up the development finance: a legal indemnity matter that required specialist advice the client had not yet been able to source.
LBB’s Approach
Matt Percival conducted a full review of the warranty market and secured competitive, well-structured terms through Build-Zone, carrying A-rated insurer capacity. The quality of presentation mattered here: airspace developments can attract significantly higher premiums if they are not structured and submitted correctly, given the technical considerations around building above an existing occupied structure. Getting the submission right from the start was therefore not just good practice but a direct cost control measure for the client.
The policy was placed on a 10-year warranty basis with a two-year defect period, covering the nine residential apartments and shared areas, with a residential excess of £1,000 and a common areas excess of £10,000 reflecting the mixed-use nature of the building.
In addition to the warranty placement, Matt connected the client with one of LBB’s specialist legal indemnity partners to resolve the outstanding indemnity issue that had been blocking the development finance process. With both matters addressed, the client’s finance partner was satisfied and the project was able to move forward.
Outcome
- 10-year structural warranty secured with Build-Zone, backed by A-rated insurer capacity
- Competitive terms achieved through correct market structuring and presentation of the airspace scheme
- Warranty met all requirements of the client’s development finance partner
- Legal indemnity matter resolved through LBB’s specialist partner network, unblocking the finance process
- Client able to proceed with a single point of contact across warranty and legal indemnity — a genuine one-stop-shop experience
The client confirmed they would be returning to LBB for future schemes, citing the breadth of support provided across both the warranty and legal indemnity requirements as a key reason for their confidence.
This case reflects LBB’s ability to add value beyond the placement itself. For a client new to structural warranties, the combination of clear market guidance, correct scheme structuring, and access to specialist legal indemnity advice through LBB’s partner network meant that two obstacles blocking their development finance were resolved through a single relationship — efficiently and cost-effectively.
This case study is intended for professional clients and does not constitute personal advice or a financial promotion to retail customers.
The London Belgravia Group Provides Risk and Insurance Advisory Solutions to Global Property Developers. London Belgravia Brokers Ltd, t/a LBB, is an appointed representative of Ten Insurance Services Ltd t/a Eleven Network, which is authorised and regulated by the Financial Conduct Authority
