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.
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.
Four things that move your price
Planning status
The biggest driver of price and leverage. Land with consent granted bridges cheaper and higher than land where the application is still running.
Loan to value
The lower the leverage against current value, the keener the rate. Pushing towards the top of the band costs more and needs a stronger case.
Exit strength
A clear route to development finance or a sale, backed by a realistic timescale, prices better than an open-ended plan.
Site and sponsor
The nature of the land, the planning risk, and your track record all feed into the rate a specialist lender will offer.
Rates & costs: FAQs
What are planning gain finance rates?
Land bridging is typically quoted as a monthly interest rate, indicatively around 0.75% to 1.1% per month depending on planning status and security. Stronger, consented cases can move onto senior debt priced from around 6% to 8% a year. These are indicative bands; we source terms from whole-of-market specialist lenders for each site.
How much can I borrow against the land?
Leverage is set by the planning position. Against land that still has to win consent, expect indicatively up to around 50% to 65% of current value. Against land with outline or full consent, that can rise to around 65% to 75%. Every case turns on the site and the exit.
How is the interest charged?
Interest is usually rolled up over the term and settled when you exit, so there is nothing to service month to month while you wait on planning. On some longer or serviced facilities interest is paid periodically instead. We set out the structure before you commit.
What fees are there?
Expect an arrangement fee charged as a percentage of the facility, plus valuation and legal costs, and sometimes an exit fee. We set out all costs before you commit, and there is no charge to enquire.
Get a firm quote for your site
Send us the current value or purchase price, the planning position and your timescale and we will come back with indicative terms.