Development Finance Case Study: 100% Funding for South Coast Joint Venture with No Developer Equity

Positive Commercial Finance specialises in development finance and joint venture funding for experienced developers who need flexible, high-LTV solutions. This case study demonstrates how we delivered a complete 100% funding package for a residential development on the South Coast.

The Opportunity & Challenge

Our client, an experienced developer, entered a Joint Venture (JV) with a landowner. The landowner agreed to defer part of their payment until sales completed at the end of the project. This structure required 100% development finance — covering the initial land deposit plus all build costs — with the developer contributing zero cash equity upfront. Many mainstream lenders hesitate on zero-equity deals, so specialist funding was essential.

Our Solution

We sourced lenders comfortable with joint venture development finance and 100% funding packages where the developer brings expertise rather than capital. We structured and arranged a gross development finance facility of just under £1.8 million at 68% Loan to Gross Development Value (LTGDV). This fully satisfied the project’s funding requirements.At the eleventh hour, the vendor confirmed the land was VAT-elected. We quickly arranged a short-term VAT bridge loan through a specialist lender and coordinated all parties to ensure the purchase completed smoothly without delaying the project.

Deal Structure

Loan to Gross Development Value (LTGDV): 68%
Interest Rate: 0.95% per month (interest retained)
Arrangement Fee: 2%
Exit Fee: 1.5% (based on facility amount)
Term: 18 months

The Outcome

The client secured everything needed to proceed with the development: full land purchase funding, 100% build costs, and a VAT solution — all without putting personal cash into the land acquisition. Positive Commercial Finance delivered a tailored development finance package that aligned perfectly with the Joint Venture structure, enabling the project to move forward on time.