● Flatpay UK
May 2026
London office
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A scaling business, a defined budget, and one building that fits the brief.
Ten chapters
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FTE Forecast
Total & desks required
25-month view · end state 650–700 total / 450–500 desks required · Personio actuals + forecast
- The headcount is driven by the BDR-to-Sales-Manager ratio — at 1.3×, the highest of any Flatpay market.
- That ratio is high because of lower gross conversion in the MCC channel: more BDRs are needed per signed deal.
- At the end state this is roughly 189 Sales Managers and, on that ratio, roughly 246 BDRs.
End-state team composition — UK vs Germany
Same scale across both bars · UK end state (indicative) vs Germany actuals May 2026
Sales Managers / Field Sales
SMs · Territorial & Regional Mgrs · Training
BDRs / MCC
BDRs · Team Leads · Training & Quality Mgrs
Inside Sales / Portfolio
Inside Sales · Retention · Inhouse Installation
Operations
Customer Success · Support Agents
Local Management
HR
Other (Group hires, Facility)
Decision
→ Options 2 & 3 explored in depth on the following slides
Three long-term options + interim · ranked by sales velocity risk
Options 2 & 3 — Deep-dive
2
Option 2Option 2 — Move MCC to periphery London
Peripheral London — leased market shortlist · all costs £/sqft p.a.
Option 2 cost model — Watford MCC + Ark 7th/8th hub
3
Option 3Option 3 — Move MCC office to Newcastle
Newcastle / North East — leased market shortlist · all costs £/sqft p.a.
Option 3 cost model — Newcastle MCC + Ark 7th/8th hub
Additional saving — BDR salary differential
The fully loaded cost per booking is currently approximately £55 in London. North East salaries for equivalent telesales and BDR roles are 10–15% below London (based on current job postings for comparable roles). By indexing the full BDR compensation package to Newcastle levels, we expect the cost per booking to fall to approximately £47–50 — a saving of £5–8 per booking. At scale with 200+ BDRs producing ~10,000 bookings per month, this represents a meaningful reduction in MCC operating cost beyond the rent saving shown above.
Option 3 — Deep-dive
SM + BDR headcount · FS new sales / month
SMs
London BDRs
NW BDRs
FS sales (with split)
FS sales (no split)
-
115 BDRs hired in Newcastle in September and October as full HR infrastructure is not yet set up. Ramped to 20 in November. No new London hires.
-
2Ramped to 30 BDRs/month in December while London BDR base is phased out through managed attrition.
-
3Full phase-out of remaining 27 London BDRs. Newcastle becomes sole MCC from Jan 2027.
-
4Ramp to 50 BDRs/month from February as Newcastle HR infrastructure matures and hiring reaches full capacity.
Estimated net impact
Decrease in FS sales velocity
Approximately 6–7 months of depressed sales depending on ability to scale the BDR team in Newcastle. FS sales are expected to return to August 2026 levels by March 2027. By August 2027 the split scenario trails the no-split forecast by ~10% (1,984 vs 2,190 monthly FS sales).
Main blockers on higher Newcastle ramp-up
→
Lack of middle management — we expect very few Team Leads and coaches to be willing to relocate to Newcastle
→
Lack of HR infrastructure in place to begin with — recruitment, onboarding, facilities all need to be built from scratch
Location & Market Dynamics
| Area | Grade A headline rent · £/sq ft |
|---|---|
| Mayfair, St James's | £110 – £250 |
| Marylebone | £80 – £150 |
| Victoria, Westminster | £80 – £150 |
| Knightsbridge | £80 – £150 |
| Fitzrovia | £85 – £135 |
| Prime City | £80 – £130 |
| Soho, Regent Street | £80 – £125 |
| King's Cross | £85 – £115 |
| Clerkenwell, Farringdon | £75 – £120 |
| Paddington | £70 – £110 |
| Covent Garden | £70 – £105 |
| Waterloo, Southwark, London Bridge | £60 – £100 |
| Holborn | £65 – £95 |
| Bloomsbury | £65 – £95 |
| Shoreditch | £60 – £95 |
| Vauxhall, Battersea | £65 – £85 |
| Hammersmith, White City, Olympia | £50 – £75 |
| Docklands Prime — Canary Wharf | £50 – £70 |
| Stratford & Dalston | £45 – £55 |
| Heathrow — Stockley Park | £40 – £50 |
\\u25c6 Hammersmith, our focus area, is among the lowest-cost Grade A submarkets in inner London — while keeping a central-west location.
The Ark · Hammersmith
Available floors & units
| Floor / Unit | Size | Desks | Density | Condition |
|---|---|---|---|---|
| 8th floor (B-C) | 8,759 sq ft | 102 | 86 sqft/desk | CAT B |
| 7th floor (B-C) | 9,193 sq ft | 102 | 90 sqft/desk | CAT B |
| 6th floor (entire) | 21,539 sq ft | 250 | 86 sqft/desk | CAT A |
| 5th floor (entire, or broken up in units) | 22,536 sq ft | 262 | 86 sqft/desk | CAT A |
| 1st floor — Units 1A / 1B temporary option | Units 1A + 1B | ~95–120 | fit-out / build-out | CAT A |
The 5th floor can be taken whole or split into separate units — a 145-desk part and a 116-desk part. The permanent options below combine the 6th, 5th and 7th floors; the 8th floor (B-C) feeds the temporary bridge space from August 2026.
Four options · cost breakdown (all £/sqft figures per annum)
| Option | Floors | Sq ft | Desks | Headline rent £/sqft PA |
Anticipated rent £/sqft PA |
All-in rent £/sqft PA |
Est. rent-free months · 5-yr |
Discounted all-in £/sqft PA · RF applied |
Effective cost PA |
|---|---|---|---|---|---|---|---|---|---|
| A | 7th (B-C) + 6th floor | 30,732 | 352 | £47.50 | £45.00 | £81.85 | 10 | £74.35 | £2.28m |
| B | 6th floor only | 21,539 | 250 | £47.50 | £44.00 | £80.85 | 10 | £73.52 | £1.58m |
| C | 6th + 5th floor (entire) | 44,075 | 512 | £47.50 | £42.50 | £79.35 | 10 | £72.27 | £3.19m |
| D | 6th floor + part 5th floor | 34,031 | 395 | £47.50 | £42.50 | £79.35 | 10 | £72.27 | £2.46m |
Remark · Option D over the full 10-year term
The figures above amortise rent-free across the 5-year break point. Committing to the full 10-year term unlocks a larger rent-free incentive — we expect to negotiate 20–22 months — which would bring Option D's effective all-in down further.
All £/sqft figures are per annum. All-in rent = anticipated rent + business rates (£22.00/sqft) + service charge (£14.85/sqft). Discounted all-in applies the rent-free period across the 5-year break point — all options modelled at 10 months' rent-free over the first 60 months — with rates and service charge payable in full from day one. The landlord's £65/sqft fit-out contribution is separate — a contribution the landlord funds, shown as a benefit on the next page, not netted against rent-free. Option D — the 6th floor plus the 145-desk part of the 5th — is the recommended take, with a right of first refusal over the remaining 5th floor (116 desks).
Move-in timeline
Space
5th floor
option
option
OPTION
Trigger remaining 5th floor — +116 desks
Exercisable at any point as headcount needs it · ~3-month fit-out from exercise · takes total capacity to 511 desks
Desks:
have vs. need
have vs. need
245
300
281
350
316
350
343
350
371
400
392
400
▲ trigger 5th floor
422
511
431
511
446
511
Aug '26
Sep '26
Oct '26
Nov '26
Dec '26
Jan '27
Feb '27
Mar '27
Apr '27
Dotted outline = desks available that month · solid bar = desks the forecast requires, with the figure shown inside. Capacity stays ahead throughout: ~300 desks in August, ~350 from September, ~400 with the permanent move in December, and 511 once the remaining 5th floor is triggered.
Shortlist · for comparison
| Building | Area | Sq ft | Desks | All-in £/sqft PA | Annual £ | Monthly £ |
|---|---|---|---|---|---|---|
| 5 The Square, Stockley Park | Heathrow | 18.3k | ~213 | £63.50 | £1.16m | £97k |
| Ealing Cross, 85 Uxbridge Rd | Ealing | 18.4k | ~214 | £75.56 | £1.46m | £116k |
| The Fold, 20A Stanwick Rd | Kensington | 16.9k | ~197 | £76.00 | £1.35m | £107k |
| DThe Ark — 6th + part 5th | Hammersmith | 34.0k | 395 | £79.35 | £2.70m | £225k |
| CThe Ark — 6th + 5th (entire) | Hammersmith | 44.1k | 512 | £79.35 | £3.50m | £291k |
| BThe Ark — 6th floor only | Hammersmith | 21.5k | 250 | £80.85 | £1.74m | £145k |
| AThe Ark — 7th (B-C) + 6th | Hammersmith | 30.7k | 352 | £81.85 | £2.52m | £210k |
| St. Vincent House | Covent Garden | 14.6k | ~170 | £82.26 | £1.26m | £100k |
| 3 Shortlands | Hammersmith | 16.2k | ~188 | £84.45 | £1.43m | £114k |
| Building 11, Chiswick Park | Chiswick | 17.5k | ~203 | £86.09 | £1.57m | £126k |
| The Aircraft Factory | Hammersmith | 13.2k | ~153 | £89.56 | £1.25m | £98k |
| 245 Hammersmith Rd | Hammersmith | 15.0k | ~174 | £91.00 | £1.43m | £114k |
All buildings — including the four Ark options — are ranked by all-in £/sqft, lowest first. The annual figure is the headline all-in rent × floor area — before the rent-free discount, on a like-for-like basis with the other buildings; the discounted effective cost is shown in the options table above. Desks for the non-Ark buildings are estimated at ~86 sq ft per desk, the same density assumption used for the Ark options.
Building Type
01
Project management fees
£25–45k
PM manages the fit-out — keeps contractors on budget, on time, and scrutinises each line item to minimise costs.
02
Agency fees
£10k
Landlord covers the majority of Tally's fee; the remainder is linked to savings achieved.
03
Legal fees
£8–14k
A commercial property solicitor will be instructed to draft the lease.
04
SDLT
£300–330k
UK Stamp Duty Land Tax, payable to HMRC at lease completion. This transaction size pushes into the highest bracket — roughly a 10× step up from sub-15k sqft deals.
05
Deposit
£700k
Covers the landlord's exposure and Flatpay's covenant. Refundable at lease end.
06
Fit-out
£1.3m
Cost to fit out the space. Capped at £65/sqft — the landlord pays this, up to the cap; any spend above falls to Flatpay.
∑
Subtotal — before contribution
~£2.4m
One-off costs including the fit-out, before the landlord's contribution.
−
Fit-out contribution
−£1.3m
The landlord funds the fit-out (capped at £65/sqft) — removed here as it is not a Flatpay cost.
∑
Net one-off cost
~£1.1m
Upfront cash to Flatpay — SDLT, deposit, PM, agency and legal fees.
Dilapidations — end of lease
£200k – £450k
A "diminution of value" assessment at lease end, £15–20/sqft worst case. Highly negotiable — we are arguing for zero, since the landlord retains ownership of the fit-out. Excluded from the cost figures above; treat as a contingent, contested item that falls due, if at all, only at the end of the lease.
Total annual cost of occupation · Option C
| Cost line | Basis | Annual |
|---|---|---|
| Occupancy cost — excl. one-off | Effective all-in £72.27/sqft PA × 44,075 sqft | £3.19m |
| One-off costs — amortised | £371k (PM, agency, legal, SDLT) ÷ 5 years | £74k |
| C Total annual cost — Option C | Occupancy + amortised one-off | £3.26m |
Total annual cost of occupation · Option D
| Cost line | Basis | Annual |
|---|---|---|
| Occupancy cost — excl. one-off | Effective all-in £72.27/sqft PA × 34,031 sqft | £2.46m |
| One-off costs — amortised | £371k (PM, agency, legal, SDLT) ÷ 5 years | £74k |
| D Total annual cost — Option D | Occupancy + amortised one-off | £2.53m |
If the business does not outgrow the space
Option D — the 6th floor plus the 145-desk part of the 5th — is the lower-cost position at £2.53m/yr. If headcount does not require the remaining 5th-floor units, the right of first refusal lapses unused and the £3.26m Option C cost is never incurred.
Effective rate — £72.27/sqft
Anticipated rent (£42.50) discounted by 10 months' rent-free across the 5-year break, plus business rates and service charge in full — these are payable from day one and are not discounted. The fit-out is funded by the landlord and is not netted into this figure.
Excluded from the annual cost
The £700k deposit is refundable at lease end. Dilapidations (£200–450k, contested) fall due, if at all, only at lease end. Upfront cash at completion is ~£1.07m.
Service Charge
Cost split · Option D (6th + part 5th floor)
All-in
£79.35/sqft PA
× 34,031 sqft = £2.70m / yr
Shortlist comparison · service charge as a share of all-in rent
The Ark and Stockley Park rent/rates/service splits are confirmed by the marketing material. Splits for the other comparators are estimates on the typical structure for Grade A buildings of similar size; the all-in totals match the shortlist on Page 4 exactly.
Open questions on cost — status to date
01Do we need to pay service charge, or can we run the services ourselves — and if not, can the rate be reduced?
The service charge covers the running of the common parts of the building — heating, cleaning, lift repairs and maintenance, reception salaries. It can’t be limited or reduced since Flatpay benefits alongside the other tenants. What we can negotiate is a cap on future increases — protecting against open-ended uplift over the term.
02Can unspent fit-out budget be converted into rent reductions?
Part of the negotiation. We can ask — though the working assumption is that the majority of the £65/sqft cap will be required for the fit-out itself, leaving limited room to convert.
03Can the £700k deposit be avoided, minimised, split, or deferred?
Several mechanisms are available: sacrificing rent-free in exchange for paying monthly into the deposit account; clawback mechanisms that return the deposit to Flatpay within the lease term, typically linked to profitability triggers; and parent-company or bank guarantees, which limit the deposit level the landlord can reasonably request.
04What would running the services ourselves cost as a benchmark?
A £0 landlord service charge is only achievable by taking an entire building — at which point the occupier becomes responsible for running and managing every service in the building (security, M&E maintenance, cleaning, lifts, reception, insurance, the lot). For a multi-tenant building like The Ark, the service charge model is the only available structure, and the rate quoted to us sits below typical market benchmarks for buildings of this scale.
Commute
\\u25c6 The Ark averages 41 minutes at £2,388/yr per employee, with six of seven options inside a 36–43 minute band — broadly comparable on commute. Stockley Park is the clear outlier: 65 minutes and £4,788/yr — roughly £2,400 more per employee each year, or about £440k across 183 staff.
Door-to-door commute modelled from Personio home postcodes (public transport, no car); cost is a TfL annual Zone 1–office travelcard, plus a bus leg for Stockley Park. 70 Field Sales staff excluded as non-commuters. Figures are estimates.
Door-to-door commute modelled from Personio home postcodes (public transport, no car); cost is a TfL annual Zone 1–office travelcard, plus a bus leg for Stockley Park. 70 Field Sales staff excluded as non-commuters. Figures are estimates.