We're Land Bridging Finance specialists
Bridging finance for land with planning, or without planning available for loans from £50k to £250m for terms of 1 to 24 months.
We help you get the deal done fast.
We arrange fast land bridging finance secured on almost any type of land.
Our land bridging loan service
- Market-leading property bridging loans from £26,000 to £250m
- Monthly interest rates from 0.75% pm
(Lower rates for £700,000+ loans or less than 50% LTV) - LTVs up to 70% (up to 100% finance if additional collateral is available)
- No monthly payments with interest rolled-up options
- Terms up to 24 months
We provide a fast reliable service to help you get the finance you need at the best available rates.
Our finance is available on property in England, Scotland, Wales and Northern Ireland.
We consider all types of credit history including non-status, bad or adverse and don't perform automated credit checks so there's no footprint from enquiring.
With incredible relationships with the UK's top lenders including specialist lenders, family offices and private investors, we can source the bridging loan you require:
up to £300k loans in 3 days
up to £700k loans in 7 days
up to £250m from 14 days
We arrange finance for property developers, investors and speculators for land purchases, land banking or development. Whether you need fast financing to take advantage of a time-critical opportunity, have to refinance to allow time for a change of use, gain more favourable planning consent, or simply begin development we can arrange financing for even the most complicated circumstances.
No deal is too complex and every case is fully considered on its own merits. We're experts in packaging your needs in such a way that a lender can understand its value and be able to lend against it.
Where your timeline is critical and short, we're confident we can get your bridging loan in place. Get your best no obligation quote today.
Land Bridging Loan Criteria
| Loan to value (LTV) | Land with planning up to 70% Land without planning up to 50% 100% Funding available with additional security |
| Loan term | 1 to 24 months |
| Loan amount | £50,000 up to £250m |
| Interest options | Rolled-up, retained or serviced |
| Interest rates | From 0.75% |
| Decision | Immediate decision in principle |
| Completion | 2 weeks |
| Early repayment fees | None |
| Availability | Secured on assets in UK & Europe Individuals, Companies, SPVs No credit & adverse credit considered |
| Exit strategy | Sale or refinance |
A comprehensive guide to Land Bridging Finance
Land bridging finance refers to a type of short-term funding that is specifically designed to assist individuals or businesses in purchasing land or property quickly, Moving quickly is essential when purchasing land as the demand has recently increased for development land.
It is often used to bridge the gap between the purchase of new land and the development of that land. As such it's most commonly used by property developers, investors and speculators for land purchases, land banking or development.
It can however, also be used by businesses and individuals who wish to purchase plots of land such as agricultural or greenfield land.
Land bridging finance allows borrowers to access the funds needed for a land purchase while they await the sale of an asset or are able to arrange longer-term financing.
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How can Land Bridging Finance be used?
Land bridging finance can be used for various purposes, including:
Purchasing land quickly: Land bridging finance allows borrowers to secure a land purchase promptly, even if they do not have immediate access to funds from the sale of their current property.
Refinancing Land: Delays in planning are not uncommon, nor is the need to refinance before your loan term ends. Land can be refinanced to extend the loan term and provide the opportunity for the owners to realise the lands full value.
Property development: It can be used to finance property development projects, such as constructing residential or commercial buildings on the purchased land.
Auction purchases: Land bridging finance can help buyers finance property bought at auction and secure the land opportunities they desire without waiting for traditional financing.
Key features of Bridging Loans for Land:
Short-term financing: Land bridging finance is typically a short-term loan, usually ranging from a few months up to two years, although specific terms may vary depending on the lender.
Fast approval and funding: Bridging loans for land are known for their quick approval and funding process, allowing borrowers to access funds promptly.
Secured loans: Land bridging finance is typically secured against the land or property being purchased, providing collateral for the loan. However other assets can be used. For example the loan could be a residential bridging loan secured on a residential property or a commercial bridging loan secured against a commercial property.
Higher interest rates: Due to the short-term nature and higher risk involved, bridging loans for land often have higher interest rates compared to traditional long-term mortgages.
Flexible repayment options: Borrowers can choose from various repayment options, such as monthly interest payments or rolling up the interest to be repaid at the end of the loan term.
Lending criteria for Land Bridging Finance
Lending criteria for land bridging finance may vary among lenders, but common factors considered include:
Loan purpose: Lenders assess the purpose of the loan, such as land purchase or property development, to determine the viability of the project.
Exit strategy: Borrowers must provide a clear and feasible plan to repay the loan, typically through the sale of the land or property or by refinancing with long-term financing.
Property valuation: Lenders evaluate the value of the land or property being purchased to determine the loan amount and loan-to-value ratio (LTV). Unfortunately automated valuations are not possible with land bridging loans.
Borrower's creditworthiness: While credit history is considered, lenders are more focused on the value of the security (the land or a property) when assessing eligibility for land bridging finance.
Advantages of Land Bridging Finance
Quick access to funds: Land bridging finance offers a fast funding solution, enabling borrowers to take advantage of time-sensitive opportunities.
Flexibility: Bridging loans provide borrowers with flexibility in terms of repayment options, allowing them to choose what suits their financial situation.
No monthly repayments: Some bridging loans offer the option of rolling up interest payments until the end of the loan term, easing short-term financial burdens.
Competitive loan-to-value ratios: Depending on the lender and the specific circumstances, borrowers can achieve higher loan-to-value ratios compared to alternative financing options.
Disadvantages of Land Bridging Finance
Higher interest rates: Bridging loans typically have higher interest rates compared to long-term mortgage loans due to the short-term nature and perceived higher risk. Even though the costs of land bridging finance might be considered higher than some forms of financing there are ways you can
Additional costs: Borrowers should consider additional costs associated with land bridging finance, such as arrangement fees, valuation fees, legal fees, and potentially early repayment charges.
Exit strategy risk: Failure to secure a suitable exit strategy, such as the sale of the land or refinancing, can result in additional challenges or difficulties in repaying the loan.
Does the Land need to have planning permission?
Whether land requires planning permission depends on its specific designation and intended use.
Some land may already have planning permission in place, making it easier to obtain financing and proceed with development. However, land without planning permission can still be eligible for land bridging finance, provided the borrower has a viable plan for obtaining the necessary permissions.
Loan-to-Value (LTV) for Land Bridging Finance
The loan-to-value ratio represents the loan amount as a percentage of the value of the land or property being purchased.
LTV ratios for land bridging finance typically range from 50% to 75%, depending on factors such as the borrower's creditworthiness, the property's location, and the lender's criteria. However, it's important to note that each lender may have its own specific LTV requirements.
Loan duration for Land Bridging Finance
The duration of a land bridging loan is typically short-term, ranging from a few months to two years. However, specific loan durations can vary depending on the lender, borrower's needs, and the planned exit strategy.
It's important to discuss the loan duration with the lender and ensure it aligns with the borrower's requirements and financial plans.
Users of Bridging Finance for Land
Various individuals and companies may utilise land bridging finance, including:
Property developers: Developers often use bridging finance to secure land quickly and start construction while arranging long-term financing or waiting for the sale of completed units.
Investors: Investors may use bridging finance to purchase land or property for investment purposes, such as buy-to-let properties or commercial real estate.
Homebuyers: Homeowners looking to purchase land for a new home may use bridging finance to bridge the gap between the sale of their current property and the purchase of land with the intention of developing that land via a self-build loan.
Companies & Businesses: Organisations seeking to purchase additional ground either adjacent to their existing premises or in a new location for diversification, business expansion, development, car parking, storage or simply for speculation.
Auction buyers: Buyers participating in property auctions often rely on bridging finance to secure properties quickly, as auctions typically require immediate payment.
Eligibility for Land Bridging Finance
The eligibility criteria for obtaining land bridging finance can vary among lenders. However, common factors considered include:
Borrower's creditworthiness: While credit history is considered, lenders will prioritise the value and potential of the land or property being used as collateral.
Exit strategy: A clear and feasible plan to repay the loan is essential. The lender will assess the viability of the exit strategy, such as the sale of the land or property or refinancing with long-term financing.
Property valuation: The value of the land or property being purchased is evaluated to determine the loan amount and loan-to-value ratio.
Appropriate security: The land or property being used as collateral should have sufficient value and be marketable to mitigate the lender's risk.
Timeframe for obtaining Land Bridging Finance
The time required to obtain land bridging finance can vary depending on factors such as the complexity of the transaction, the borrower's preparedness, and the lender's processes.
While some lenders may provide approval and funding within a few days, the overall timeframe can range from a few weeks to a couple of months. It is advisable to start the application process well in advance to ensure sufficient time for evaluation and processing.
Information required for a Land Loan application
When applying for a land bridging loan, lenders typically require the following information:
- Details of the land or property being purchased, including location, size, and any existing planning permissions.
- Personal or company financial information, including income, assets, and liabilities.
- A well-defined plan outlining how the loan will be repaid, such as through the sale of the land or property or refinancing.
- Relevant documents, such as land or property valuation reports, identification documents, and legal paperwork.
What's the difference between Land with Planning and Land without Planning?
Land with planning refers to land that already has obtained planning permission for specific uses, such as residential, commercial, or industrial development.
This type of land often carries higher value and is more attractive to lenders and developers due to reduced uncertainty. On the other hand, land without planning permission does not have pre-approved development rights. However, it can still be eligible for bridging finance, provided the borrower has a viable plan for obtaining the necessary permissions.
Types of Land purchased in the UK
Bridging finance can be used to acquire various sites and types of land in the UK, including:
Residential land: Land intended for the development of residential properties, such as houses, apartments, or housing estates.
Commercial land: Land designated for commercial use, such as offices, retail spaces, industrial sites, or warehouses.
Agricultural land: Land primarily used for agricultural purposes, such as farming, livestock rearing, or horticulture.
Development land: Land suitable for development, which may require planning permission for residential, commercial, or mixed-use projects.
Different types of Land in the UK and their uses
Greenfield land: Undeveloped land, typically outside urban areas, often used for agricultural purposes or potential development.
Brownfield land: Previously developed land, often in urban areas, which may require remediation before redevelopment. Even where there is no possibility of development on a specific brownfield site, the land may still be valuable to developers due to the recent environmental requirements being imposed by the UK government.
Agricultural land: Land used for farming, crop cultivation, or livestock rearing.
Residential land: Land designated for residential purposes, suitable for building houses, apartments, or housing estates.
Commercial land: Land intended for commercial use, such as offices, retail spaces, or industrial sites.
Mixed-use land: Land suitable for a combination of residential and commercial development, typically incorporating both residential and commercial properties in a single project.
5 Valuable types of Land in the UK
The value of land in the UK can vary depending on factors such as location, existing infrastructure, planning permissions, and market demand. Some types of land that tend to be more valuable include:
- Land with existing planning permission for desirable uses such as residential or commercial development.
- Well-located land with good transportation links and access to amenities.
- Land in areas experiencing high demand for housing or commercial development.
- Land in regions with strong economic growth and investment potential.
"Hope Value" in relation to Land speculation
"Hope Value" refers to the potential increase in the value of land due to the expectation of obtaining planning permission in the future.
It represents the added value attributed to the land based on the anticipation of favourable planning decisions. Speculators may purchase land with the hope of securing planning permission, as this can significantly increase the land's value.
However, it is important to note that obtaining planning permission is not guaranteed, and factors such as local planning policies and regulations can affect the outcome.
Whats the longest term bridge finance that you can get for land?
Land bridging loans are only intended to be a short term solution and are typically on available for up to 24 months. If you require longer term finance then you should seek advice for a land mortgage.
What's the maximum LTV on land bridging loans?
Lenders normally offer less loan to value (LTV) ratios on land loan compared with property. You can expect to be offered 60 to 65% of the amount if planning permission is granted. If you don't have planning approval this could go lower than 50%. For a land bridge deal you can require a deposit of at least 35% with interest factored and possible above 50% unless they have been secured.
Land bridge loan eligibility
There are factors that lenders use in deciding what rates to offer. Borrowers with this type of credit usually get the best deal. Lenders also take into account factors including the cost of a bridge loan.
Exit strategies for land bridge loans
An exit strategy is the way you plan to terminate a loan at their final settlement day. In the context of bridging loan, an exit strategy is applied to map the way you will repay debt. There are multiple methods for exiting a land bridge loan such as:
- Sale of the land once planning permission has been obtained
- Developing the land and refinancing the bridge with development finance
- Refinance the bridge loan with another bridge loan
- Refinance the loan with a longer term finance solution such as land mortgages
Can I get a bridging loan for land?
Yes, bridging loans are commonly used for funding the purchase of land with or without planning. A land bridge loan is a short-term loan secured against a piece of land, which typically doesn't have any buildings/ structures standing on it.
Funding land purchases in England
You might be able to get land finance if you have land that can be developed or land for future development. You will need a plan from your architect and a financial model showing how the property will make money after it is built, as well as an estimate of how much funding you'll need to complete the project.
Do I need planning to raise financing via a land bridge loan?
You can obtain a land bridge loan for land with or without planning although bear in mind that the maximum LTV (Loan to value) is less for land without planning. Typically you can obtain up to 70% LTV for land with planning or up to 50% for land without planning permission. It's also possible to raise 100% of the finance you require if you're able to provide additional security.
Land bridge finance is frequently used for land purchases that need to be secured immediately, but where the land owner does not yet have planning permission or may simply not want to wait until they get it. This is known as land purchase with bare land planning consent.
How do you qualify for land bridging finance?
The land owner must have enough equity in the land to cover what is being borrowed from the lender and also that they are able to pay back a loan of this kind on time without defaulting. The maximum LTVs are up to 70% with planning permission or 50% without planning permission.
Which loan is best for land?
We can advise you which land bridging loan is best for your specific case as the loans we arrange are tailored to meet the very specific needs of each client.
What are land bridging finance options?
Bridging loans can be used in a wide range of cases where land purchase or development is needed quickly and when other forms of finance are unavailable or unsuitable.
Can I get loan to purchase a land?
A land bridging loan can be used to purchase land where the owner doesn't have planning permission or has no immediate intention of applying for it. Bridging loans are also often used in cases where a property is being purchased before its development value is realised, as they provide quick access to funds without long application processes or extensive paperwork. Aside from buying land it can also be used to refinance land.
Is it hard to get financing for purchasing land?
No, providing you secure the loan against an asset, typically the land itself or property, obtaining a bridging loan is fairly straight forward and quick.
When is land financing is needed?
A land bridging loan can be used to purchase land where the owner doesn't have planning permission or has no immediate intention of applying for it. Bridging loans are also often used in cases where a property is being purchased before its development value is realised, as they provide quick access to funds. Bridging loans for land are different to development financing.
The biggest difference is that bridging loans are paid out in one tranche where as development finance is paid out in multiple tranches. The reason for this is to avoid borrowing more than the developer actually needs at that moment in time to fund the build schedule. Drawing down the funds in this staged manner ensures the developer avoids unnecessary interest fees.
What types of land purchases can a bridging loan be used for?
Land bridging loan be used to purchase:
- Agricultural land
- Commercial land
- Residential land
- Industrial land
- Brownfield land
- Green land
Please note the types of land listed above are not exhaustive, contact us if you wish to purchase land not listed here.
Bridging finance for Agricultural land
Agricultural land also known as farmland or cropland is land typically used for pasture, livestock or the production of crops. It can also be used for limited equestrian activities however there are specific rules governing land use so if you're unsure then consult your local planning advisory service.
Section 336 of the Town and Country Planning Act 1990 defines ‘Agriculture’ as: “horticulture, fruit growing, seed growing, dairy farming, the breeding and keeping of livestock (including any creature kept for the production of food, wool, skins or fur, or for the purpose of its use in the farming of land), the use of land as grazing land, meadow land, osier land, market gardens and nursery grounds, and the use of land for woodlands where that use is ancillary to the farming of land for other agricultural purposes”.
Bridging finance for Commercial land
Commercial land means land which is used for commercial purposes such as office buildings or space, industrial sites and retail.
Bridging finance for Residential land
Residential land means land that is currently being used as a dwelling or is suitable for being used as, or is to be developed for dwellings.
Bridging finance for Industrial land
Industrial land means land which is utilised in connection with manufacturing, processing, or raw materials storage at facilities identified.
Bridging finance for Brownfield land
In urban planning, brownfield land is any land that has been previously developed but not currently in use that could potentially be contaminated.
What types of development can I finance using a bridging loan?
Land bridge finance are frequently used for land purchases that need to be secured immediately, but the land owner does not yet have planning permission or may simply not want to wait until they get it. This is known as land purchase with bare land planning consent.
This is different to development financing, if you're considering developing the land then view our development finance page.
