Any Credit HistoryMarket Leading RatesJoint VentureMezzanine FinanceQuick DecisionExpert AdviceDevelopment ExitNo Monthly PaymentsAt UK Property Finance, we take pride in arranging cost-effective joint venture development finance solutions for property developers and investors from all backgrounds. Our extensive experience and established provider network enable us to organise unbeatable joint venture finance deals to suit all types of development and construction projects.
Whether you are planning ahead or in need of urgent support with a time-critical funding requirement, we would be delighted to hear from you.
At UK Property Finance, we provide a broad range of bespoke joint venture development finance solutions within two broader categories:
100% Joint Venture Development Funding: A flexible and cost-effective way to cover 100% of the project's total costs, including all construction costs, professional and legal fees, acquisition fees, and more.
Pure Equity Investment Development Finance: Between 10% and 30% of the total costs of the project are funded by the investor, while the remaining 70% to 90% is covered by a form of senior debt (such as conventional development finance).
As all forms of joint venture development finance are bespoke financial solutions, we believe it is important to get to know our clients' requirements and objectives at a deeper level. This enables us to provide the honest and impartial expert advice our clients need to choose the most appropriate form of financing for their projects.
Competitive joint venture development finance is easier to secure with extensive evidence of an established track record. However, competitive deals can also be negotiated by a first-time investor or property developer.
For more information on the potential benefits of joint venture development finance or to get your application underway, call the team at UK Property Finance for an obligation-free consultation.
When looking for development finance it is important to identify the type of project being planned by the developer in order to access the correct funding product. Types of works can include:
New builds nearly always require development finance loans. Once the project is completed, developers may use development exit finance as a more cost-effective solution, but this cannot be done before the project is watertight.
For this type of project, refurbishment finance is typically the correct type of loan to use, however if the project is larger than the norm, development finance may be a better alternative.
A refurbishment loan, which is a type of bridging finance, is generally used for property renovations. It can be used for various improvements including, installing a new roof, general structural changes, building an extension, refurbishment, and decoration.
Property investors or developers may want to buy property which needs development or completion work still doing and are unable to get funding from their bank. This is a typical scenario when a bridging loan is a suitable alternative.
Development finance loans are typically paid in one of the following three ways:
The total loan amount is paid in full, using the profits, when the project is complete, and the properties have been sold.
This usually happens when the developer wants to keep the development for either personal use or for rental purposes.
This type of short term loan is often used to fund a new development project before the current project is sold. It can also be used to give developers a bit of breathing space to complete minor works and find buyers.
Joint venture development finance works similarly to conventional development finance. However, no deposit needs to be paid with joint venture development finance, and rates of interest are typically higher.
Depending on the size and nature of the project, joint venture development finance providers may ask for a 40% to 50% share of the profits generated by the project. They will also want to keep a close eye on the project's progress throughout, and may insist on having a say on what takes place and when.
This differs from conventional development finance, where the provider has no direct say in how the project plays out.
Eligibility requirements for joint venture development finance are stricter than those that apply with conventional development finance.
Policies vary from one lender to the next, but typical qualification criteria include the following:
All cases are considered by way of individual merit, highlighting the importance of presenting your application as convincingly as possible.
The biggest benefit of joint venture development finance is the exclusion of initial deposit requirements. This can make it much easier to get ambitious projects and/or multiple projects off the ground in the first place, as there is no requirement to raise capital for an upfront payment.
Even though it is usually necessary to pass a share of the projects to the lender, this can be augmented with the significant savings made by covering the full costs of the project with one all-inclusive funding solution.
Having access to funds for property development purposes allows borrowers to take on bigger projects than they would usually be in a position to finance.
The purpose of the facility is to provide the developer with additional time to sell their completed development, while keeping costs as low as possible.
Qualifying for finance as a first-time developer can be challenging. This is why it is advised to seek support of an independent broker at the earliest stage.
Our products are suitable for large and small hotel development projects of all types, from repurposing existing properties to building new hotels from scratch.
Joint venture development finance works similarly to conventional development finance. However, no deposit needs to be paid and rates are typically higher.
Mezzanine finance, aka mezzanine funding, effectively enables property developers to 'top up' their first-charge development finance facility to access extra funding.
No Personal Guarantee (PG) development loans are effectively a form of unsecured funding for major property development and construction projects.
Whether your goal is to maximise the value of a property you plan to sell or to boost rental income long-term, a refurbishment finance loan could be just the thing.
Senior debt development finance is the primary source of funds in the form of a first-charge loan. It is considered a lower-risk facility on the part of the lender.
Stretched development finance can be the perfect choice for investors and developers looking to stretch their own equity as far as possible with borrowing for up to 90%.
'Light refurbishment' is used for cosmetic upgrades and minor improvements. 'Heavy refurbishment' is used to raise funds for structural improvements.
Commercial property development finance can be used to fund, build or develop a property or be used to expand your current business property or space.
Permitted development funding emerges as a financial solution tailored to specific projects where prior planning permission is not needed.
No matter the scale or scope of your ground-up development, lets work together to breathe life into your vision.
Working with developers nationwide, we provide access to flexible funding enabling the inception and realisation of high-value student accommodation projects.
Build to Rent is a property development strategy crafted specifically to cater to the rental market, diverging from the traditional focus on long-term home ownership.
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