Bridging finance for land that already has planning permission

This suits buyers and owners who hold a site that already has planning permission but who are not yet ready, or not yet funded, to start on site. The permission has done its work on value; the question is bridging the gap between now and the next event.

Common situations we see include:

• Buying a consented site off-market where the seller wants a quick, certain completion.
• Securing a site at auction against a tight deadline, ahead of arranging development finance.
• Holding land you already own while you finalise a build programme, a sale, or a refinance.
• Bridging a short window before senior development debt is drawn.

It is used by companies, developers, promoters and property investors treating land as a commercial asset. Because the borrower is usually a corporate entity buying or holding land for profit, this is unregulated commercial lending outside the FCA's regulated-mortgage perimeter. Where a deal would instead be a regulated mortgage contract, we refer it to an appropriately authorised firm. Nothing here is financial, legal, planning or tax advice.

Lenders price for risk, and planning is one of the largest risks in land. Once permission is granted, a big part of that uncertainty is removed. The site can be valued on its consented basis, the number reflects what can actually be built, and a lender can see a clear route to being repaid.

That confidence shows up in two ways. First, leverage: as a broad guide, loan to value can sit around 65% to 75% of current value after consent, against roughly 50% to 65% before consent when the outcome is still uncertain. Second, pricing. Land bridging typically runs around 0.75% to 1.1% per month, and a strong consented case with a clear exit can move towards senior debt from around 6% to 8% a year. These are indicative bands, not a quoted rate; the actual terms depend on the site, the consent and the exit.

Interest is usually rolled up rather than serviced monthly, which keeps cash free during the hold. Facilities generally range from £100k to £25m over terms of 1 to 36 months.

Consented sites often move quickly and quietly. A vendor may prefer a discreet off-market sale to a buyer who can complete without a chain of conditions, and auction lots come with fixed completion dates that a slow lender simply cannot meet.

Bridging is built for that pace. Because the value is already established by the permission, a lender can move to speed and certainty rather than getting stuck on planning what-ifs. That lets you compete for good sites on completion terms, not just on price.

To move fast we ask for the essentials early: the planning decision notice and drawings, the purchase price and any evidence of value, your intended exit, and confirmation of the entity buying. As an illustration, a company might agree to buy a consented site for £2m at auction and raise a bridge of around 70% of value to complete on time, then refinance into development finance to build out. This is a hypothetical illustration only and not a promise of any particular value or outcome. The stronger and clearer your paperwork, the keener the terms we can place.

The loan is secured by a first legal charge over the land itself, supported by the planning consent that underpins its value. A lender will typically want a valuation on the consented basis, standard legal due diligence, and a personal guarantee or debenture from the borrowing company depending on the structure.

Repayment, the exit, is the part a lender scrutinises most, because a bridge is only as safe as the way it comes off. There are two common exits for consented land:

• Exit to development finance: the bridge is repaid when senior build funding is drawn to start construction.
• Exit to a sale: the site is sold on, often to a developer or housebuilder, with the sale proceeds clearing the loan.

Because interest is usually rolled up, the redemption figure grows over the term, so a credible, dated exit matters. We help you present the exit clearly, whether that is a build programme with a funding line lined up or a sales strategy with realistic timescales. A weak or vague exit is the most common reason a good site is priced badly or declined.

Yes. Both are permission, but a lender reads them differently. Outline consent establishes the principle of development, often with reserved matters such as layout, scale and appearance still to be approved. Full or detailed consent approves the scheme in full, so there is much less left to resolve before a spade goes in the ground.

The practical effect is on certainty and therefore on terms. A site with full consent has fewer remaining hurdles, so a lender can usually offer leverage towards the upper end of the after-consent range and keener pricing. With outline consent, a lender may take a slightly more cautious view because reserved matters and conditions still need discharging, and any planning conditions can affect timing and cost.

Neither is a problem in itself; we place both regularly. What matters is presenting the consent accurately: what has been granted, what conditions attach, what is still to be discharged, and how that fits your exit. Being straight about the status of the permission almost always produces a better result than glossing over the detail.

Getting a view from us is quick. The more you can share up front, the faster and more accurately we can place your case with the right specialist lender.

It helps to send:

• The site address and the planning decision notice, with drawings and any conditions.
• The purchase price or, for a hold, current ownership and any existing debt.
• How much you want to raise and over what term.
• Your intended exit: development finance to build, or a sale.
• The entity borrowing and who stands behind it.

We will come back with an indicative view on leverage and pricing within the bands set out on this page, then work the market on your behalf. We arrange the finance and place it with specialist lenders; we do not lend ourselves. Remember these are indicative bands, not a guaranteed quote, and the final terms depend on the site, the consent and the strength of your exit. Nothing here is financial, legal, planning or tax advice.