100% finance for developersSpeak to one of our experts020 4525 5312
Fund Entire Projects
- 1 to 24 months
- £500K to £10m
- Staged funding
- Major construction and redevelopment
All Types Of Development
- Interest roll-up schemes
- Up to 60% of the Gross Development Value or GDV
- Planning gain transactions
- Major development funding
- Residential and commercial
- Expert support
- Greenfield and brownfield land
One of the common issues developers face is the opportunity to develop a site when the cash to do the work is not available. 100% Development Finance can provide a solution
Table of Contents
To be successful in the property development industry you often have to act quickly to secure opportunities. Various types of property development lending exist to help you provide the scale of funding you need - including Bridging Loans that can be arranged in a matter of days.
However, in most cases, this funding is designed to supplement your own investment in the project. If you don’t have the funds available, it can mean that you are forced to miss out on the projects - and profits - you have identified.
100% Development Finance - also known as Joint Venture Development Finance or Equity Development Finance - allows a developer to fund a scheme without putting in any of their own cash. It can provide finance from £500K to £10m, depending on the project.
For experienced developers, it can mean the opportunity to take on projects that are out of reach with traditional finance solutions.
What is Joint Venture Development Finance?
Your cash flow may be restricted by the need to complete the sale of one project to start on the next - which can lead to missing out on profitable opportunities if you cannot secure the funds in time. A 100% or Joint Venture arrangement can provide the solution. Unlike other more traditional Property Development Finance, it is possible to access up to 100% of the development costs for a project through Joint Venture Funding - which can be vital when funds are tied up elsewhere.
This funding can range from small-scale finance for individual domestic refurbishments to complex deals for major, mixed-use developments providing multiple new homes.
The exact nature of the funding deal will vary but, in most cases, it involves an experienced developer entering into a joint venture with an established property development company. The funding partner will offer the finance required, the developer will buy the property and carry out the work, and the profits will be split on an agreed basis when the work is done and the property sold on.
Variations exist. Some joint venture property partners may insist that you provide a deposit, which may be as little as 5% of the overall cost of the project, while others may be prepared to offer the full 100%.
Profit splits may also vary. It is possible to have a 60% / 40% split in your favour, but all deals will be arranged on an individual basis, making expert support and advice essential.
The majority of lenders will expect the length of the project to be no longer than 24 months and will expect you to have planning permission in place, before agreeing to enter into a joint venture.
Why you need Rangewell to set up 100% finance
The process of applying for this kind of Property Development Finance through a joint venture can be quite complex. Joint venture property partners do not normally work directly with the public, and will only be available through specialist property finance professionals.
At Rangewell, we can provide the help you need to set up to 100% finance in a joint venture. We know the specialists involved and can help you find the funding partner you need
Last update: 14 March 2021
Download Rangewell’s free and detailed guide to Property Development Finance
Is there a difference between development finance and property finance?
What is classed as short term business finance?
Can commercial mortgages be used for development projects?
Do finance providers need to be authorised and regulated by the financial conduct authority?
What is classed as commercial property?
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