Joint Venture Development Finance
Numerous options exist within the realm of development finance, and your choice will hinge on various considerations. These factors include the amount of personal capital you can invest, the overall project cost, the project’s duration, the gross development value, and the interest rates you are willing to accept. A joint venture for property development is where the buyer gets 100% of the funds for their property development project. It can be used for residential, commercial, mixed-use, land with planning development projects.
If a client currently lacks the capital required for a down payment, they will require 100% project funding. Joint venture (JV) development finance stands as one avenue to secure the necessary funds, provided you are willing to share a portion of the profits upon project completion.
Capital will be provided by the lender for the purchase of land, the purchase of materials, as well as the cost of labour. This will be done in exchange for a substantial share of the project’s profits, usually around 40-50%. Generally, joint venture development loans have higher interest rates. Furthermore, you and the lender will set up an SPV together. Upon achieving specific milestones in the development timeline, funds will be released to the SPV in instalments. The exit strategy will involve selling the units, repaying the loan, and splitting profits with the lender when the project is complete.
Product Features Include:
- First-time developers considered.
- 100% of build cost provided for experienced developers.
- Quick decision in principle
- Available in England and Wales
- Whole of market advice is available
- Joint ventures for individuals, limited companies, sole traders and partnerships and trusts
How we can help?
FinSpace is a master broker with access to 130+ lenders based in central London. Our team of 30+ experts will talk you through the process and package your application from start to finish. We can browse the market and provide you with competitive rates and the market’s best deals.
Speak to a consultant
How we can help?
FinSpace is a master broker with access to 130+ lenders based in central London. Our team of 30+ experts will talk you through the process and package your application from start to finish. We can browse the market and provide you with competitive rates and the market’s best deals.
Speak to a consultant
Joint Venture Case Studies
HMO Portfolio Bridge in 14 days
£2,650,000
£380,000
CBILS Refinance for 10 Luxury Units
£5,000,000
£413,000
£8,300,000
5 Day Completion on Bridging Loan
£1,100,000
CBILS Refinance for 4 Detached Houses
£3,400,000
Land Bridge for 220 Apartments
£10,400,000