🌿 Land Finance

Land finance is one of the most specialist areas of UK property lending. Lenders treat land very differently to bricks-and-mortar security — the risk profile is higher, and the underwriting reflects that. But for developers who understand how to work with specialist land lenders, significant opportunities exist that high-street banks will never touch.

Types of Land Finance

• Land without planning — the hardest to finance, typically 50–60% LTV maximum. Lenders will assess hope value and the realistic prospect of achieving planning consent
• Land with outline planning — more lenders available, better LTVs. Outline consent demonstrates planning authority support
• Land with full planning — the most straightforward to finance and often rolled straight into a development facility
• Strategic land — larger sites allocated in local plans or with strong planning prospects. Longer-term facilities available

Planning Gain Finance

A specialist form of bridging used to hold land while planning permission is sought or improved. The loan is structured to give the developer time to maximise the planning consent — and therefore the value — before selling or developing. Exit is typically via a sale at enhanced value or a development facility once consent is secured.