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Submit plansHello,
I own a potential building plot just under half acre. I would like a house built on it for myself to live in. I have been recently informed of 'Joint Venture', which seems to be popular in certain areas but not common here.
It would mean working with a builder, creating 2-3 properties. I'm not completely sure how this works so I am researching it. In the meantime I would appreciate any experienced advice or comments please.
Many thanks,
G
Joint ventures of this kind can be structured in multiple ways and need not be formulaic.
You are in essence providing the land and the builder/developer would be providing (design and) construction skills including, no doubt, funding for the actual construction. As both parties will be providing different development assets so their exposure should be rewarded by profits from the development.
You’ll need valuations for the land, both with and without planning permission, and a robust legal agreement so that procurement and delivery are guaranteed, subject to planning permission, and with a corresponding equitable division of profit based upon achieving target sales prices.
This could mean a finished house is delivered for you and other units are developed and sold for the other party, but, each deal is different and can only be crafted based upon target numbers of units and their sizes. This can be very exciting and rewarding but you need to work with suitable advisers to help you craft the right deal.
Tim Doherty, Build It expert