Land Purchase Bridging Loans

Land Purchase Bridging Loans

Land Bridging Loans

Land purchases present unique financing challenges that conventional mortgage lenders are rarely equipped to handle. Whether the site has planning permission, is awaiting a planning decision, or is bare land with no consent at all, the lending criteria, valuations, and risk profiles differ fundamentally from standard residential or commercial property transactions. Land bridging loans are specialist short-term facilities secured against land, providing the capital to acquire sites quickly while longer-term development finance, planning applications, or sales are progressed.

Platinum Global Bridging Finance arranges land purchase bridging loans from our office at 64 Knightsbridge, London. We access specialist land lenders across our panel of 100+ lenders, structuring facilities from £250,000 to £15 million for sites with and without planning permission across the UK. Indicative terms are delivered within 24 hours.

What Is a Land Bridging Loan?

A land bridging loan is a short-term facility secured against a plot of land rather than a building. The loan enables the borrower to acquire the land quickly — often at auction or through a competitive off-market deal — and is repaid through a defined exit strategy: typically obtaining planning permission and selling the site at an uplift, transitioning to development finance and building out the site, or selling the land to another buyer.

Land is considered higher risk than built property by lenders because it generates no income, its value is heavily dependent on planning status, and it can be harder to sell quickly in a downturn. As a result, LTVs on land bridging are lower than on residential or commercial bridging, and interest rates are typically higher. However, the potential returns from land — particularly the planning uplift from securing consent on a site without permission — can be substantial, making the bridging cost a small fraction of the value created.

Types of Land and How Lenders View Them

Land with Full Planning Permission

The most straightforward land bridging scenario. The site has detailed planning consent for a specific development. Lenders value the site based on its consented use, and LTVs of up to 65-70% are available. Rates are closest to standard bridging — from 0.65% per month.

Land with Outline Planning Permission

Outline planning establishes the principle of development but leaves detailed design for a later reserved matters application. LTVs of up to 60-65% are typical.

Land Without Planning Permission

The highest-risk category. The lender values the land at its current use value — not its hoped-for development value. LTVs are lower — typically 50-60% of current value — and rates higher.

Agricultural and Greenbelt Land

Agricultural land has the lowest per-acre values and the most restrictive planning constraints. Few bridging lenders will consider greenbelt or agricultural land without strong evidence of development potential.

Strategic Land

Sites identified for future development in local plans but not yet allocated or consented. Terms of 12-24 months are common.

When Land Bridging Loans Are Used

Auction Land Purchases

Development sites and land plots are regularly sold at auction. The 28-day completion deadline applies equally to land as to buildings.

Competitive Off-Market Acquisitions

Development land — particularly in London and the South East — attracts intense competition. A land bridge provides confirmed capital to exchange quickly.

Planning Speculation

An investor acquires land at current use value, applies for planning permission, and sells the site at the consented value — which can be 5-20 times the acquisition price for agricultural land that secures residential consent.

Site Assembly

Assembling a larger development site from multiple smaller parcels requires acquiring each parcel independently. A land bridge provides the capital to acquire each parcel as it becomes available.

Worked Example: Land with Planning Permission

A developer identifies a 0.5-acre site in Ealing with planning permission for 6 houses. The site is being sold at auction with a guide price of £1.8 million. Bridging loan of £1.17 million (65% LTV). Interest rate: 0.70% per month, rolled up. Term: 6 months. Total interest: approximately £49,140. Arrangement fee at 2%: £23,400. Valuation and legal fees: £6,000. Total bridging cost: approximately £78,540.

Land Purchase Bridging: What We Arrange

Loan sizes from £250,000 to £15 million. LTV up to 65-70% on land with full planning permission, up to 60-65% with outline planning, and up to 50-60% on land without planning. Interest rates from 0.65% per month on consented sites. Terms from 3 to 24 months. We charge no broker fee on facilities of £500,000 or above.

Costs of Land Bridging

Monthly interest rates range from 0.65% to 1.0% per month depending on planning status, location, and LTV. Arrangement fees are typically 2% of the loan amount. Valuation fees for land are typically £1,000-£3,000. Legal fees: £2,500-£5,000.

Frequently Asked Questions

Can I get a bridging loan on land without planning permission?

Yes, but at lower LTV and higher rates than consented land. The lender values the land at its current use value.

What LTV can I get on land?

Up to 65-70% on land with full planning permission. Up to 60-65% with outline consent. Up to 50-60% on land without planning.

How quickly can land bridging complete?

Consented land with clean title: 10-14 working days. Non-consented land: 2-4 weeks.

Can I use land bridging through a limited company or SPV?

Yes. Most land purchases by developers are structured through SPVs.

Does Platinum Global charge a fee?

No broker fee on facilities of £500,000 or above.

Related Bridging Finance

• Bridging Loans — our main UK bridging loans page
• Auction Bridging Finance
• Large Bridging Loans
• Limited Company Bridging Loans
• Pre-Planning Bridging Loans
• Permitted Development Bridging
• Development Finance
• London Bridging Loans