100% UK Development Finance For Property Developers 100 percent UK property Development Finance

Our lenders provide 100% UK development finance which is also known as joint venture or (JV). Joint venture property development finance is a method of developing property without using your own money as the funder will provide the funding in exchange for a part of the profits. As the lender provides all of the money needed to complete the project, profits are usually shared on the sale of the full site or on the sale of the individual sale of the properties which is usually houses and apartments.

Generally speaking, the profits usually end up split on a 50/50 basis through 100% development financing. Some lenders will charge interest on funds drawn down and a profit split in your favour slightly. Others will charge no interest and simply split the profits 50/50.

Where interest is charged on the debt, it is usually allowed to roll up, meaning there is no need to service the debt. JV development finance is designed to cover 100% of all purchase and build costs of the project. This means that site acquisition and build costs are both covered fully by the lender.

It’s challenging for a developer with a site in-mind but not enough cash in-hand to get the finance and partners they need, while making life-defining decisions. Bring your wealth of experience and a profitable development to get the partners you need with the attention of our JV funders who will help you finance your development.

Fully Funded 100% Development Finance

Our lenders will fund 100% of all build costs including ALL professional fees.

Indicative terms will be produced within 24 hours and assuming no material information changes, we will honour those terms.

You will always speak to a decision maker to ensure you do not waste your time and because we are not at the behest of external funders, once a decision to lend is made, we stick by it.

Raising 100% Development Finance

One hundred per cent property development finance or investment finance is a 100% finance facility tailored and provided to a sponsor that needs to raise almost the whole amount of finance to realise the project.

There are different options to raise to 100 per cent development finance. The first one is the common one with additional security; this option allows the sponsor to raise the funding needed by providing other assets (usually with the first charge on behalf of the lender) in addition to the existing project.

Other options include a joint venture (JV) partnership, private equity investment, structuring debt as equity piece and restructure the whole deal with a combination of some types of finance.

Our experienced team analyses the project or the property deal and offers the sponsor the best options to realise the transaction.

100% Development Finance Highlights

  • UK mainland only
  • 100% development finance
  • Funding for all costs land & build
  • No valuations
  • No personal guarantees
  • Funding from 1% PCM
  • True 50/50 Profit share

100% Finance Options

Build Partner

A full 100% debt and equity package with interest charged on funds drawn and profit share with borrower after total GDC (including finance costs). Security held in a subsidiary  with a Joint Venture (JV) agreement with the borrower. No PG’s required by the borrower for 100% UK development financing.

Equity Partner

True 100% funding option, providing the borrowers contribution towards the purchase costs secured by a 2nd charge behind any reputable senior debt provider. Interest charges replaced by a profit share with the borrower after total GDC (including finance costs).

Joint Venture

A true JV offering for deals over £10mil GDV. Typically, major inner-City developments of multi-unit apartment schemes sold overseas off plan.


  • UK mainland only
  • Experienced Developers
  • New build or conversion traditional, timber or modular build
  • Project length max 15 months
  • Full planning detailed planning permission
  • Middle of the market property
  • No valuation required
  • Local knowledge
  • 27% return on GDV

 Joint Venture Development Finance Benefits

Working with a JV development finance lender instead of using your own funds allows you to develop quickly without having to tie up your capital. By taking this route, although profits are shared, more projects can be taken on, meaning your potential profit can actually grow. Where projects are located nearby and locally savings can be made by sharing resources between your sites.

Joint Venture Development Finance And Their Assesment

Joint venture property development lenders are taking all of the financial risk on the application and will want to see a reward for doing so. As such, applications are subject to strict underwriting on the following basis:

  • Experience: This is essential as lenders want to ensure you have a track record of delivering development schemes you are looking to build out.
  • Profit: Funders will assess the likely profit in two ways:
    • Firstly, they will judge the uplift in total cost of at least 25% for the scheme to be viable. It goes without saying, but the higher the margin, the more attractive the proposal.
    • Secondly, potential JV partners will generally only get involved in sites with a GDV over £1m. Sites above £2,000,000 tend to be the most attractive due to the increased potential profit.
  • Exit: Another key point is exiting the loan. Demand must be strong for the finished units. Your scheme must be able to demonstrate saleability. Location of the site tends to go hand in hand with this point.

What Documents Are Required For 100% JV Financing?

In order to assess a potential application, our lenders will need to see the following:

  • A fully completed faxt find and development information
  • Your CV of previous developments
  • A detailed schedule of works.
  • A detailed schedule of costs.
  • Full copy of planning permissions (or a link to the planning portal showing permissions).
  • Detail around the end value of the scheme or GDV

Frequently Asked Questions:

Do I have to invest any of my own money?

No, our lender provide 100% of the funding for every profitable property development and investment you find in the UK.

Do I need to live near my project?

Ideally, being that you’ll be the lead property developer or house-builder responsible for delivering the project, we recommend that you live within a 50 mile radius of any proposed project.

As the property developer or housebuilder what’s my profit share?

You will receive up to 50% of the profit due from the project, be it sale, rental or business income without putting any of your own money in. We do not charge interest on equity; only the senior debt and mezzanine debt facilities charge interest on a utilisation basis. Your minimum share of the profit is 40%.

Am I able to put money in as the property developer?

Yes, you’re able to put in capital towards your project which would result in your shareholding increasing. You’re able to do this via our equity platform once the project is available for funding.

Will you invest in properties without planning permission?

Ideally, we like to stick to opportunities that have planning permission or permitted development rights. If planning is due to be issued (application submitted and validated), we will also look at it and potentially approve subject to the planning permission being issued

What happens if there are any delays to a project?

We appreciate there can be delays in the world of property development. Some won’t be in your control, whereas some will. Typical delays can be caused by delays in planning conditions being submitted, detailed designs not being issued, poor procurement schedules, and programmes not being kept to.

We help to mitigate those by overseeing the programme from start to finish, though as the property developer or housebuilder the onus is on you to do the work. Should we feel there is neglect being applied, we serve you with a rectification notice which gives you 4 weeks to rectify the issue. Ultimately, everything is in your hands.

To provide some guidance, this is why it’s vitally important to select a competent and experienced professional team that’s not made up of one man bands. We assist you from the outset in making sure the correct professional team has been selected and all for market prices.

What Are the Main Development Finance Costs In A Normal Development Finance Case?

Fees, charges and general borrowing costs vary significantly from one lender to the next. The following will apply in most instances as the primary costs of development finance:

Facility fee – More commonly referred to as an arrangement fee, the facility fee is calculated as a percentage of the total cost of the loan (gross or net).

Interest rate – Interest on a development finance loan can be charged on an annual or monthly basis. Annual interest rates of 7% are not uncommon, as are monthly interest rates of 1%. Longer-term facilities attach lower rates of interest, though cost more than those that are repaid quicker.

Exit fee – Sometimes called a completion fee, the exit fee is usually calculated as a percentage of the total cost of the loan (gross or net). Some lenders charge a percentage of the total value of the completed project – not the sum borrowed.

Broker fee – Some brokers offer their services free of charge for customers, receiving commissions from lenders upon successfully referring customers. Some brokers impose a fixed fee for their services or charge a percentage of the total value of the loan.

These are just some of the primary costs to take into account when considering development finance. Working with an independent broker will help ensure you gain access to the best possible deal to suit both your requirements and your budget.

At UK Property Finance, we usually do not charge a penny for the services we provide. No brokerage fees for borrowers and no ties, just the honest and impartial advice you need to make the right decision.

If a fee is charged, you will be informed of this in our initial quotation.

Other Development Finance Costs to Take Into Account

Additional development finance costs to take into account (which may or may not be applicable) include the following:

Valuation fees – It will usually be necessary for an initial valuation to be carried out by a neutral third party, in order to assess the open market value of the security. This will also typically include a projected valuation of the completed project.

Application fees – UK Property Finance does not charge application fees. Some lenders and brokers impose fees simply for submitting an initial application, or seeking advice on development finance.

Legal fees – If it becomes necessary to hire a solicitor or seek qualified legal advice, the applicant will be responsible for meeting all such costs accordingly.

Administration fees – This is a somewhat vague term, which can apply to almost any additional cost imposed by the lender. Some brokers also charge administration fees – UK Property Finance does not.

Monitoring fees – Development finance lenders will naturally need to monitor the progress of the project, in order to ensure it is reaching its predetermined goals. This is to make sure their investment is sound, and the funds allocated are being used as agreed. All monitoring fees are picked up by the borrower.

Draw down fees – Each time a new instalment of funds is transferred to the borrower, an additional fee known as a draw down fee may apply. This could be a set fee, or charged in accordance with the size of the instalment.

Telegraphic Transfer fee (TT Fee) – This is a cost imposed by the banks handling the money transfers, which in the case of development finance can be comparatively large. Nevertheless, TT fees are generally quite small and charged at a fixed rate.

The Development Finance Process

Development finance is always tailored to the requirements of the borrower and the specifics of the project. There are several key stages of development finance that remain relatively constant, which are as follows:

  • Initial enquiry and obligation-free consultation
  • Comparison of deals from specialist UK lenders
  • Submission of initial application to suitable lenders
  • Agreement in principle issued to the borrower
  • Site visit to establish the project’s viability
  • Independent valuation of the project’s total value
  • Formal loan offer and final terms
  • Solicitor involvement for legal support and advice
  • Completion of the loan and first payment (drawdown)
  • On-going instalments to fund the project
  • Repayment of the loan as agreed at a later date

Obtaining Property Development Finance

Regardless of where you are in the overall scheme of things, finding a suitable source of development finance is one of the last things that you want to be worrying about. You will no doubt have enough on your plate with the day to day running of things making sure everything is going according to plan and that everyone is pulling their weight whilst carrying out their delegated tasks appropriately as you head towards your end goal.

In terms of usage, property development finance may be required for anything ranging from new build residential projects, mixed use buildings, strictly commercial developments through to the purchase of existing land or buildings which need to be refurbished to an exact specification within a set timeline. It can either be arranged outright at the beginning of the project or halfway through a building development and it is typically paid out in increments at varying points towards completion.

When applying for development finance the main considerations on the lender’s behalf are the assets you are able to offer as security and your ability to show how feasible the project is. The lender will also require additional information including how long the project will take to finish, the end value and a breakdown of all of the costs involved, including reasonable allowances for any unexpected or incidental expenses which may incur.

Once you are able to show that your project is worthy of investment in terms of economic viability and profit margin, you will also need to prove that you have the relevant planning permission and the experience to get things completed. If your own experience is somewhat limited then this is not usually too much of a problem as long as the people who are working for you have a proven track record with good credentials. This will include everyone ranging from the architect, your chosen project manager through to the actual builders themselves who you will ideally be employed under a fixed price contract in order to provide peace of mind for both you and the person who is lending the funds.

With this in mind it is absolutely vital that you find a property development finance broker that is highly experienced with access to a wide and varied panel of lenders experienced in providing development loans. Investors who are open to participating in any type of property development project regardless of size, scale or predicted time frame.

Development Finance: The Challenges


Opening up the market brings more choice, and options are always a positive, but poor visibility within the market poses its biggest challenge. 

Many developers simply aren’t aware of the breadth and depth of non-bank lenders that exist, and/or lack the relationships to access the key decision makers within those organisations. 

Poor transparency, little or zero marketing capability and a subsequent lack of brand awareness mean that credible, alternative lenders with large and flexible lending funds are often missed, along with the opportunities they proffer. 


Most developers can identify around five lenders, when in reality there are many more options. It is however critical to be cautious. A lot of new lenders have entered the market in the last few years, so it’s questionable whether they’ll be around during and after the next economic downturn. It’s important to understand how lenders are funded, and whether their backers are likely to withdraw their funding lines at the first sign of trouble. 

There are examples already of lenders taking on too much risk,  but others are close to the line. If prices fall due to an economic downturn, more lenders will disappear, meaning serious repercussions for developers who may have invested their life savings in a scheme. If the leverage offered seems to be higher than the rest of the market, or a rate seems too good to be true, it probably is, especially if the operator is new to the property finance market. It’s essential to work with trusted lenders. 

Choosing your Lender

To maximise equity, mobilise quickly and ultimately get ahead in the property development game, borrowing from the big UK banks isn’t always a viable option. Rates are low but deposits are big, which means paying away profit shares or limiting yourself to smaller sites. Working with a broker with the right expertise, knowledge and relationships to navigate the market, can help you mitigate risk and find the lender that’s right for you. 

The Capital Stack

The Capital Stack is the structure of your development finance, or the different layers that fund a scheme. The typical stack has three layers, and normally includes senior debt, mezzanine debt and equity.


  • Debts are repaid from the bottom up, so the higher up the lender, the bigger the risk they incur and the more expensive the debt
  • Equity is always at the top of the stack, followed by mezzanine or 2nd charge, with senior lending (1st charge) at the bottom
  • Lenders will want visibility of your capital stack to see where they fit in your hierarchy of funding
  • This lets them determine the potential ROI vs. level of risk

In practice

  • Not all lenders require a big deposit, so don’t always default to your trusted lender, and shop the market to keep your equity longer 
  • Deposit requirements typically range from 10%-35%, so for a development with costs of £10m, a deposit could vary by as much as £2.5m, creating a huge opportunity cost from lost equity if your deposit is 35% rather than 10% 
  • When a lender requests a large deposit, an obvious route is to secure an investor on a profit share basis, but this will often prove to be a false economy 
  • Experiment with different loan structures to avoid hefty profit share payments

Personal Guarantees

A personal guarantee is your legal promise to repay loans issued to a business where you are a beneficial owner. Providing a personal guarantee means if the business becomes unable to repay a debt, then you accept personal liability, meaning you can’t just walk away. 

They are standard practice for development finance and are required from all shareholders, or as a corporate guarantee. The Industry average is 15%-25% of total loan amount. 

Normally, the higher the LTGDV, the higher the personal guarantee. Banks usually want twice the cover on a personal guarantee amount, so if the amount is £1m, they require evidence of a Net Asset Value (NAV) of more than £2m. 


  • Liability is joint and several, so if two of three shareholders do a runner, you will be responsible for the full amount, not just a third
  • They are not charges over other properties. You will need to submit an Asset & Liability (A&L) schedule during the application process and the bank will look for sufficient equity value to cover the personal guarantee amount   
  • Personal guarantees include liquid assets and property assets (property is preferred as cash can disappear).  
  • Equity in your main residence can count towards the NAV but the lender may discount this as it’s harder to realise in the event of a claim
  • The lowest level of personal guarantee is cost overruns, which are normally only allowed for loans with a lower LTGDV and/or a performance bond

In practice 

Personal guarantees are conceptual security, rather than actual, alternative security. They’re there to ensure both lender and borrower are strategically aligned. Lenders don’t expect to enforce them and they only do as a last resort, but they exist in case things go wrong.  

Each lender will take a different approach, but here’s how they might work in reality:  

  • If you’re unable to repay a loan (normally because a development is over time, budget or property prices are falling), you would first use the contingency built into your loan  
  • After the contingency is spent, you can ask the lender for more funding, but the lender may decline if you are already at their leverage limit  
  • Further shortfalls could be met out of liquid assets, but failing that the bank could look to enforce the personal guarantee (through the courts if necessary)  

Here’s how you may be able to reduce a personal guarantee amount:  

  • Increase your contingency, which is built into your loan. Industry standard is 5% of build costs, so look to up this  
  • Lower your LTGDV to below 50%, and lenders may make an exception  
  • Offer a cash deposit as an alternative, or supplement part of the personal guarantee with cash  
  • Get your contractor to secure a performance bond.  


    Platinum Global Bridging Finance is a distinguished high-net-worth finance broker. We specialize in providing tailored financial solutions, including Property Bridging Finance, Development Finance, Lombard Loans, Single Stock Loans, Margin Stock Loan and Commercial Property Finance tailored to meet the diverse needs of our clientele seeking robust financial lending solutions.

    100% UK Development Finance May 19, 2021