Build it
Build it
Development finance
Ground-up, conversion and part-built schemes, from site purchase to exit.
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Development finance
Which cap binds, loan to cost or loan to GDV, and the real day-one equity.
Build to Rent development
Underwritten on stabilised yield and DSCR, not sales rate.
Mezzanine and stretched senior
The gap between senior LTC and what you can fund, and the true blended cost.
Heavy refurbishment and conversion
Where refurbishment stops being a bridge: structure, change of use, drawdowns.
Part-built and rescue finance
Valuing an unfinished asset when the contractor has gone.
Bridge it
Bridge it
Bridging finance
Short-term debt where the deadline, the asset or the exit will not wait.
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Purchase bridge
Completing before the money is in place: chain breaks, tight deadlines, unmortgageable stock.
Development exit finance
Off development debt at a lower rate, to buy sales time and release equity.
Auction finance
A 28-day clock, and what must be in place before the hammer falls.
Pre-planning and planning gain
Lending against current value with planning upside.
Below market value purchase
Day-one lending against open market value rather than price.
Second charge and capital raising
Raising against existing assets, and first-charge consent.
Light refurbishment finance
Bridge plus refurb tranche, and where the development boundary sits.
Also structuredBridge to let and refinance
Hold it
Hold it
Mortgages and term finance
Long-term debt against income, once the asset is built, let or trading.
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Buy to let mortgages
ICR stress testing, limited company against personal, portfolio rules.
HMO mortgages
A higher cover test, licensing, and the two valuations a lender takes the lower of.
Commercial term, investment
Tenant covenant and lease term, and why DSCR sets the loan.
Commercial term, owner-occupier
Trading accounts and EBITDA rather than rent roll.
Portfolio refinance
Cross-collateralisation, and one facility against individual loans.
Stabilisation and term refinance
The income test replacing the GDV test, and the letting void before term debt engages.
Co-living and PBSA
An operational asset valued on income, and the operator covenant.
Run it
Run it
Business finance
Funding the business behind the property, secured on the ledger, the equipment or the covenant.
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How we work
Case studies
Articles
Tools
Development finance calculator
Size the facility against site cost, build cost and GDV.
Development exit calculator
Refinance the development facility and release equity at PC.
Bridging finance calculator
What a bridge costs, and what actually clears on day one.
Refurbishment finance calculator
Fund the purchase and 100% of the works, with interest rolled to exit.
BTL rental cover calculator
The rent a buy to let must achieve to clear a lender's cover test.
Commercial mortgage calculator
What a commercial property's income will support, and what it costs.
About
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Build it › JV and equity funding
Joint venture finance is not debt and should not be compared to it. A JV partner puts in the equity the scheme needs and takes a share of the profit rather than a rate of interest. There is no monthly cost and no redemption date; there is a share of the upside, permanently.
The arithmetic is blunt. A fifty-fifty share on a £400,000 profit leaves the developer £200,000 rather than £400,000. It also means the developer did not have to find £300,000 of equity to make the scheme happen at all. Whether that is a good trade depends entirely on whether the alternative was doing the scheme with more debt, or not doing it.
What decides how a JV works out is rarely the profit split. It is the decision rights, the step-in provisions and the exit mechanism, all of which are agreed at the start and very hard to change later. Those clauses are the deal.
Compared against stretched senior and mezzanine, honestly
A JV is one of three answers to the same problem. We model all three on your appraisal so the profit given away is compared against the cost of the debt that would have avoided it.
Decision rights written down
Who signs off the contractor, the specification, a variation and the sale price. A partner with capital and no defined role becomes a partner with an opinion on everything.
Step-in, and what triggers it
The circumstances in which your partner can take control of the scheme. This is the clause that matters most and gets read least.
The exit agreed before the entry
How and when the partner is bought out or the scheme is sold, and what happens if the sale takes longer than either of you planned.
Which lenders play here
Private funders, family offices and a small number of specialist JV providers. This is a relationship market rather than a rate market: who the partner is matters more than the headline split, because you will be working with them for the length of the scheme. We arrange it selectively, and only introduce schemes and sponsors we would back ourselves.
50/50
Common profit split
Profit share
Not interest
0%
Monthly interest cost
Decision rights
The clause that matters
Indicative, and not an offer. What a lender will actually do depends on the scheme, the borrower and a full valuation.
What to have ready
Bring these and we can tell you where you stand.
Each one is something a lender will ask for. Having it early is the difference between a fast answer and a slow one.
✓A costed appraisal with a profit that can carry a share
✓Your track record, in detail, because this is an investment in you
✓What you bring besides the site: sourcing, planning, delivery, sales
✓The equity gap you need filled, and what you are contributing
✓Programme and exit, with the evidence behind the end values
✓Your view on control: what you will and will not share
Related case study
£3.4m Equity/JV Funding for Complex Richmond Development
Related
Worth reading on this
Article
Mezzanine Finance: Bridging the Equity Gap on Your Next Development
Case study
£3.4m Equity/JV Funding for Complex Richmond Development
Article
Free Development Finance Calculator & Loan Appraisal Guide
Next
Related in this pillar.
Development finance
Which cap binds, loan to cost or loan to GDV, and the real day-one equity.
Mezzanine and stretched senior
The gap between senior LTC and what you can fund, and the true blended cost.
First-time developer finance
Experience-based criteria, and how to present a first scheme credibly.
Common questions
The questions this product raises.
How does a JV partner get paid?
From the profit, not from interest. A JV partner puts in the equity the scheme needs and takes a share of the profit. There is no monthly cost and no redemption date. On a 50/50 split of a £400,000 profit you keep £200,000 rather than £400,000, but you did not have to find £300,000 of equity to start the scheme.
Is a JV better than mezzanine or stretched senior?
It depends what the alternative is. All three solve the same problem: equity you do not have. The fair comparison is the profit you give away against the cost of the debt that would have avoided it. If the real alternative was not doing the scheme at all, a JV can be the better trade.
What should a JV agreement cover?
Decision rights, step-in and exit. Who signs off the contractor, the specification, variations and the sale price. What allows your partner to take control. How and when the partner is bought out or the scheme sold, and what happens if the sale runs late. Those clauses decide how a JV works out far more than the profit split does.
What will a JV partner want to see?
A costed appraisal with a profit large enough to share, and your track record in detail, because the partner is investing in you as much as the site. Be clear about what you bring besides the site, such as sourcing, planning, delivery or sales, and what control you will and will not share.
Bring us the detail.
Send what you have. We will tell you what is fundable and what needs work before anyone approaches a lender.
Specialist property finance for developers who want the numbers to survive underwriting.
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Fundingwise Limited is not authorised or regulated by the Financial Conduct Authority, and arranges unregulated finance only. That means lending secured against commercial property, or against residential property that is not, and will not be, occupied by the borrower or an immediate family member as a main residence. We do not advise on or arrange regulated mortgage contracts or regulated bridging loans. Because this finance is unregulated, FCA conduct rules and access to the Financial Ombudsman Service do not apply. Fundingwise Limited is registered in England and Wales, company number 13750788.