Joint venture development finance pairs a developer who has the scheme with a partner who has the capital. Structured well, it funds projects the developer could not finance alone — up to and including 100% development finance, where the developer puts in no cash equity at all.
This page is for developers who have found a viable site but lack the equity to fund it, or who want to scale into larger schemes than retained profits allow. We arrange the development lending across 135+ lenders and structure the JV element around it; on occasion we also introduce clients to potential partners.
Key facts
- Two structures. Most commonly a JV partner contributes the equity and a standard development loan funds the build; less commonly the funder itself acts as the JV partner, for a shareholding and a share of the profit.
- Senior lending: development lenders will typically fund 100% of build costs, with a day-one advance of around 60–65% of land value — indicative figures; terms depend on the lender and the deal.
- 100% development finance is possible but not common. It usually requires a profit-rich scheme, planning permission in place and a demonstrable track record — or other assets cross-charged as security.
- Profit share is defined in the JV agreement before anything else happens; the partner bringing most of the capital will expect the larger share.
- Speed: indicative terms typically within around 10 days; full funding often within six to eight weeks.
- Exit: sale or refinance, with the partner repaid their equity and profit share.
How joint venture development finance works
The starting point is the joint venture agreement: usually the partner brings the capital and you bring the project. The agreement confirms the roles — who is in charge, who does what — and how the profit is split at the end.
The partner can be silent, providing capital and stepping back, or active, bringing sector experience you do not yet have. A developer moving from houses to hotels, or from building two units at a time to thirty, often wants a partner who has managed that scale before.
Once the partnership is agreed, the funding itself is standard development finance, with the JV equity covering the gap on the land and costs. At completion the venture is unwound: either the project is sold and the profits split, or one partner refinances and buys the other out.
100% development finance — the zero-cash-equity structure
The phrase "100% development finance" usually describes a structure where the developer contributes no cash of their own. There are two routes to it.
The first is the equity JV: a funder finances the full land and build cost in exchange for a shareholding and a significant share of the profit. Because the funder carries the financial risk, the requirements are firm — planning permission already granted, a developer who has delivered comparable schemes, and enough profit in the deal to reward both parties. You are effectively paid for finding and delivering the opportunity; the funder is paid for the capital.
The second route is cross-charging: the senior development loan covers the build and a portion of the land, and the shortfall is secured against other assets you own — your home, a buy-to-let portfolio, or in some cases valuable assets such as watches, cars or art. It can be done; it depends on who is involved, how much lending you need and how the deal is structured.
Who it suits
A JV partner lets you access projects that would otherwise be out of reach and scale up faster than your own balance sheet allows. Many developers use a partner for their first two or three schemes, build equity, then fund later projects alone. The trade-off is straightforward: you split the profit, and a partner providing all the capital will often want the lion's share. You make less on the deal, but you hold a small slice of a much bigger pie — and the track record carries into your own projects later.
Costs, profit share and what to expect
- The real cost is the profit share, agreed in the JV agreement before the development loan is set up. Rates and fees on the senior debt move with the market — we quote against your actual case.
- Front-load the legal work. Allow two to three weeks for the JV agreement before the development loan begins. A watertight contract — contributions, roles, profit split — is the foundation of the whole structure.
- Valuation and lender legals follow the usual development finance pattern — formal terms and valuations take a couple of weeks.
The process
- Enquiry. You tell us the site, the numbers and what you can contribute.
- Structure. We establish whether you need a capital partner, a funder-as-partner, or senior debt with the gap secured against other assets.
- JV agreement. Your solicitor papers the partnership — contributions, roles and profit share — before the loan is set up.
- Lender terms. We approach the right development lenders; indicative terms typically within around 10 days.
- Valuation, legals and drawdown. Full funding is often in place within six to eight weeks.
- Exit. The scheme sells or refinances and the partner is repaid.
Frequently asked questions
What is joint venture development finance?
Development funding built around a partnership. Most commonly a capital partner joins you and a standard development loan funds the build; less commonly the funder itself becomes your JV partner, taking a shareholding and a share of the profit.
Can you get 100% joint venture development funding?
It is possible, but not common. A full 100% structure usually means an equity JV with a meaningful profit share, or cross-charging other assets to cover the shortfall above the senior loan. Planning permission and a credible track record carry real weight in either route.
How is the profit shared?
However the JV agreement defines it. The split reflects what each party brings — a partner providing all the capital and substantial experience will expect a large proportion. The agreement should settle this before any lending is arranged.
What happens to the joint venture once the project is complete?
Sale or refinance. Many developers sell and split the proceeds; alternatively, if the completed scheme carries enough equity, you can refinance, repay your partner's capital and profit share, and keep the asset.
Are there alternatives to joint venture development finance?
Yes — traditional bank loans, private equity, certain development grants, or securing the equity gap against other assets such as your home or a buy-to-let portfolio. Contract and invoice finance can also help where you have a trading business.
Talk to an adviser
Tell us about the site, the numbers and what you can bring to the deal, and we will set out the structures available — including whether a 100% arrangement is realistic for your case. Call 020 7126 8574 or request a call back — we aim to reply within one working day.
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Your property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. Most development finance is not regulated by the Financial Conduct Authority.
To put numbers to your own scheme, use our development finance (GDV) calculator.
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