Joint Venture Development Finance for Three New-Build Homes

Positive Commercial Finance believes that the best funding solution isn’t always the cheapest. This case study shows how we arranged Joint Venture Development Finance for an experienced developer building three luxury homes in the South East by introducing a lender they could trust for the long term.

The Project

Our client had more than 30 years of property development experience and an excellent track record of delivering successful residential schemes.

They had secured a site under option and obtained planning permission to build three detached homes, each exceeding 3,000 square feet.

The development itself was straightforward.

However, choosing the right lender was far more important than securing the lowest interest rate.

What Really Mattered

The client had experienced difficulties during the previous recession when a High Street bank withdrew support at a challenging time.

Although the business survived, the experience changed how they approached funding future developments.

This time, they wanted a lender with a proven history of supporting developers through changing market conditions.

They were prepared to pay slightly more if it meant working with a funding partner they could rely on throughout the project.

Our Approach

Positive Commercial Finance focused on finding the right lender, not simply the lowest-priced facility.

We introduced the client to an experienced Joint Venture Development Finance provider with a strong reputation for supporting developers across different market cycles.

Following a site visit and detailed discussions, the funder was impressed by both the quality of the scheme and the client’s extensive track record.

Terms were offered promptly, and the transaction progressed smoothly to completion.

Deal Structure

• Loan to Cost (LTC): 80%
• Loan to Value (LTV): 60%
• Interest Rate: 7% per annum
• Arrangement Fee: 2%
• Exit Fee: 1%
• Term: 18 months

The Result

The client secured a Joint Venture Development Finance facility from a lender they felt confident would support them throughout the project, regardless of market conditions.

More importantly, they gained a long-term funding relationship rather than simply the lowest available interest rate.

This case study demonstrates that successful property development is not always about securing the cheapest finance. Choosing the right lender can provide greater confidence, flexibility and long-term support throughout the development journey.