Planning gain finance

Bridge the gap to planning consent

Planning gain finance funds land through the point that consent is granted, when the uplift in value happens. We arrange short-term debt to buy or hold a site with planning potential, then refinance or sell once permission lands. It keeps your cash free while the value is being made.

How it works

Site today

Bought without consent

£1,500,000 Bridged against the land

With consent

The value uplifts

The finance: Holds the site through planning

£100k to £25m

Facility size

To 65% / 75%

LTV pre / post consent

From 0.75%

Per month on land bridging

1 to 36 mths

Term

Whole-of-market specialist lendersPre-consent and post-consent landPromotion and strategic land sitesNo charge to enquire

How planning gain finance works

From acquisition to consent to exit

A single facility funds a site through the point that planning permission is granted, when the uplift in land value happens, then hands over to your build finance or a sale.

Secure the site

Bridge against land you are buying or already own, with outline consent, full consent or none yet. Indicative leverage runs lower before consent and higher once it is granted.

Hold through planning

The facility funds the hold while your application, appeal or promotion runs. Interest is usually rolled up, so there is nothing to service while you wait on the planning authority.

Consent adds the value

Planning permission lifts the land value from its existing-use worth towards its value with development potential. That uplift is the point of the deal, and the reason a lender will advance against it.

Refinance or sell

Once consent lands you exit: refinance onto development finance to build out, move to a longer term facility, or sell the consented site to a housebuilder or another developer.

When planning gain finance helps

Four ways developers and landowners use it

Whether the consent is granted, in progress or still a plan, there is a way to fund the land while the value is being made.

Land with planning granted

Buying or holding a site that already has outline or full consent? A bridge funds the land at a higher LTV while you arrange the build finance or a sale.

Pre-planning and hope value

Need to acquire or hold land while consent is still being pursued? A pre-planning land bridge lends against current value, with the uplift as the exit story.

Promotion and option deals

Land promoters and strategic land players use finance to option or buy sites and fund them through the local plan or an application, then exit to a housebuilder.

Refinance the uplift

Consent granted on a site you already own? Refinance to release the increased value, repay the acquisition debt, or fund the next phase.

Rates & costs

What planning gain finance costs

Planning gain finance is priced against the security and the planning status. Debt against land with consent granted is cheaper and higher-leverage than debt against a site that still has to win permission. The figures below are indicative bands, not a quote.

Facility size

£100,000 to £25m (larger by referral)

Term

1 to 36 months, interest rolled up or serviced

Land bridging rate

Around 0.75% to 1.1% per month, depending on planning status and security

Senior debt rate

From around 6% to 8% a year on stronger, consented cases

LTV

Up to around 50% to 65% before consent, 65% to 75% once consent is granted

Security

A first charge over the land, sometimes with additional security or a personal guarantee

Worked example (illustrative)

£1,000,000

Land value today

£600,000

Pre-consent bridge at 60%

On a site worth £1,000,000 in its current use, a pre-consent bridge at 60% loan to value funds £600,000 towards acquisition. The facility holds the site while outline consent is pursued. If permission is granted and the consented land is worth materially more, you refinance onto development finance or sell. These figures are an illustration to show how the structure works, not a promise of any particular value or outcome.

The complete guide

Planning gain finance explained

Planning gain finance is funding secured against the increase in land value that planning permission creates. When a site wins consent, its worth jumps from its existing-use value towards its value with development potential. That jump, the planning gain, is what a specialist lender will advance against, so you can buy or hold the land while the value is being made rather than after.

Why the planning stage needs its own finance

Ordinary development finance funds a build once you already have consent and are ready to start on site. It does not fund the earlier, riskier stage of acquiring land and carrying it through the planning system. That is the gap planning gain finance fills. It sits before the build: a land bridge against a site with consent granted, a pre-planning bridge against a site where the application is still running, or promotion and option finance for strategic land moving through the local plan.

How leverage changes with planning status

The single biggest driver of what you can borrow is where the site sits in the planning process. Before consent, a lender is advancing against current or existing-use value and taking a view on hope value, so leverage is more conservative, indicatively up to around 50% to 65% of value. Once outline or full consent is granted, the value is real rather than hoped for, and leverage can step up to around 65% to 75%. Pricing follows the same logic: consented land bridges cheaper than pre-planning land.

How the finance is repaid

The exit is planned from day one, because a short-term facility only works if there is a clear way out. The common routes are refinancing onto development finance to build the scheme out, moving to a longer term investment facility, or selling the consented site to a housebuilder or another developer. Because the land is worth more with consent than without, that uplift is usually what makes the refinance or the sale add up.

Who uses it

Planning-led developers use it to acquire off-market or auction sites with upside and hold them to consent. Land promoters and strategic land players use it to option or buy land and fund it through promotion. Landowners use it to refinance a site once their own consent has landed. We are a broker, not a lender, and we place each case with the specialist lenders whose criteria fit the site and the planning position. Nothing here is financial, legal or tax advice.

FAQ

Planning gain finance FAQs

What is planning gain finance?

Planning gain finance is funding secured against the uplift in land value that planning permission creates. In practice it is short-term or structured debt used to buy or hold a site with development potential, from before an application is submitted through to the point consent is granted. The loan is repaid by refinancing onto development finance, moving to a longer term facility, or selling the consented land.

Can you lend against land before planning is granted?

Yes. A pre-planning land bridge lends against the land's current value while an application, appeal or promotion is in progress. Because consent is not yet certain, leverage is lower, often up to around 50% to 65% of current value, and the lender will want to understand the planning strategy, the timescale and a credible exit. Once consent is granted the picture improves and you can usually refinance at a higher loan to value.

How is hope value treated?

Hope value is the amount buyers will pay above existing-use value for the prospect of future development. Lenders are cautious with it, because it depends on consent that has not yet been granted. Most will lend against current or existing-use value before consent and only recognise the fuller value once permission is in place, which is why the loan to value steps up after consent.

What loan to value can I get?

It depends on the planning status. Against land that still has to win consent, expect indicative leverage up to around 50% to 65% of current value. Against land with outline or full planning permission, that can rise to around 65% to 75%. Every case turns on the site, the strength of the planning position and your exit, so treat these as bands rather than a quote.

How is the finance repaid?

The exit is planned from the start. Common routes are refinancing onto development finance once consent allows a build to start, moving to a longer term investment facility, or selling the consented site to a housebuilder or developer. Because the land is usually worth more with consent than without, the uplift is what makes the refinance or sale work.

Is planning gain finance regulated?

Planning gain and land finance arranged for limited companies, developers, land promoters and investors is unregulated commercial lending outside the FCA's regulated-mortgage perimeter. Some lending, for example to an individual secured on a property linked to their home, can be a regulated mortgage contract; where that is the case we refer it to an appropriately authorised firm. We are a broker, not a lender, and nothing here is financial, legal or tax advice.

Ready when your deal is

Get indicative terms on a facility

Tell us about the site, its current value or purchase price and the planning position. We come back with indicative terms. There is no charge to enquire.

How it works