This option is lucrative for new property developers - in essence, the lender provides 100% of the investment you need, and in return, you share the profits with them.

Joint investors don't need to be lenders - they can be other developers, investment firms or different types of business.

If you find a property being sold at less than market value, you have more options when it comes to development finance. A lender may be willing to consider the open market value of the property, rather than what you paid for it - and therefore offer a higher maximum loan value and potentially more competitive rates.

You can also, therefore, buy a property without a deposit. Say you are purchasing a home at 70% or less of the market value, the loan would likewise be 70% of market value, and therefore a less risky proposition for a lender.

Our final option to buy a development property without a deposit is to look at properties with very short leases. When the lease expires, the ownership returns to the freeholder - and the cost of extending a lease increases, the shorter the lease term.

That means that properties are regularly sold with a short lease period since the owner cannot afford the high cost of extending the lease.

Developers can snag a bargain by purchasing a low-cost property at significantly below market value. If they then extend the lease, the property instantly becomes much more valuable and can hold equity even on a 100% debt-financed investment.