Bridging finance is one of the few reliable ways to buy land at the speed a good site demands — with or without planning permission. Planning status sets the terms: lenders will typically advance up to 65% loan-to-value where consent is in place, and around 50% where it is not.
Land bridging at a glance
- Land with planning: most lenders will go to 60% loan-to-value, with 65% possible on stronger cases.
- Land without planning: expect a cap of around 50% loan-to-value. The lender pool is smaller, but the market is well established.
- Loan size: no practical ceiling. We have seen consented sites bought at £30 million with bridging at 60% loan-to-value — the constraint is the loan-to-value, not the figure.
- Speed: completion in as little as two weeks, with four weeks comfortably achievable.
- Interest: usually rolled up into the loan, so there is nothing to service monthly during the term.
How a land bridging loan works
The mechanics mirror any other bridge: a short-term, interest-rolled loan secured against the asset, repaid through a defined exit. What changes with land is the lending appetite. Fewer lenders operate in this space, valuations are more conservative, and loan-to-values sit a step below those available on built property.
Lenders divide land into two categories. Land with planning carries permission to develop, and its value — and the lending against it — reflects that consent. Land without planning is priced on what it is today, with the upside treated as speculation; that is why the loan-to-value is capped at around 50% with virtually every lender.
The long-term plan drives the structure from day one. If the site already has consent, it will become a development at some point. If it does not, the likely path is securing permission and either selling on or building out. Understanding which of these applies is central to choosing the right lender.
Land bridging or development finance?
The two are often conflated, and the distinction matters. A land bridge funds the purchase of the site. Development finance funds the build, drawn in stages against works as they complete. A bridge gets you the land quickly; once planning is granted and you are ready to break ground, the bridge is refinanced onto a development facility.
Where a build is the end goal, we will often place the bridge with a lender that operates both a bridging and a development arm, so the loan can move across at the appropriate stage without a change of lender.
Who uses a land bridge
Three borrower profiles come up most often. Investors buying unconsented land to pursue planning gain — securing permission to increase the value, then selling on or building out. Developers moving on a consented site that will not wait for a development facility to be arranged. And buyers acquiring plots at auction, where the completion deadline rules out slower funding routes.
In every case, speed is usually the deciding factor: the bridge secures the site while the longer-term plan catches up.
What it costs
Rates move with the market and price to the individual deal — we quote against your actual case rather than a headline figure. The structural costs, though, are consistent:
- Arrangement fee: typically around 2% of the loan balance.
- Valuation: scales with the size of the site. On land without planning, budget a couple of thousand pounds.
- Legals: light by bridging standards — around £1,000 for your own representation plus £1,000 for the lender's is a sensible budget.
- Interest: normally rolled up into the loan rather than serviced monthly, so it is settled at exit.
The process
Underwriting follows the same shape as any bridging application; what changes is the lender selection, which turns on where the land is, what it is worth and what you intend to do with it. We assess the deal with you, gather the supporting information, package the case for the right lender and manage it through to completion.
Two weeks is achievable where the case demands it, though we would ordinarily ask for four. Genuinely urgent timescales can be met, but some lenders charge more for them — a cost worth weighing against what the speed actually buys you.
Frequently asked questions
Can I get a bridging loan on land without planning permission?
Yes — though many assume otherwise. The lender pool is smaller and the loan-to-value caps at around 50%, but it is a well-trodden route for buyers pursuing planning gain. The lender will want to understand the plan for the site, because the plan is the exit.
How much can I borrow against land?
There is no real monetary cap — only the loan-to-value. On land without planning that means around 50% of value; with planning, 60% and possibly 65%. With a large enough site, very large loans are entirely workable.
What exit strategy will a lender accept?
Two exits dominate: sale of the site once planning is secured, or refinance onto development finance to build it out yourself. If you intend to develop, the structure can accommodate selling the completed units, retaining some, or retaining the lot — the exit is built around your objectives, and we help you structure both the bridge and what follows it.
Am I eligible for a land bridging loan?
If you have a UK credit footprint and a credible plan for the land, you are probably eligible. The underwriting mindset is the same as any bridge — the lender is lending against the asset and the exit, not a payslip.
What should I have in place before buying land speculatively?
Understand the costs before you commit — pursuing planning can be expensive. Engage an architect and builders early, and speak to the local planning office to form a realistic view of the permission you are likely to get. If the land already has consent, the same discipline applies to build costs, timescales and your long-term intentions: deciding mid-build to live in the property, or to sell it, can change the structure of the loans. Being well researched before you start makes a measurable difference.
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Your property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. Most bridging loans on investment property are not regulated by the Financial Conduct Authority.
To put numbers to your own scenario, use our bridging loan calculator — it estimates interest, fees, net advance and LTV.
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