Bridging Loans For Land
Get The Best Deal On A Land Bridging Loan
Bridging finance lenders offer specific products for loans against land. Find out how they work and get the best deal with ABC Finance
Over 30,000 loan-seekers helped
FCA Authorised – Fully regulated
Receive your funds in as little as 3 days
Market-leading interest rates
CeMAP Qualified Advisors
No Broker Fees

Author: Gary Hemming CeMAP CeFA CeRGI CSP
20+ years experience in bridging loans
If you’re looking to borrow money to purchase or refinance land, a bridging loan could be the ideal solution.
Whether your land has no planning permission, outline planning or even full planning consent, we can help.
Bridging Loans For Land Explained
What is a bridging loan for land?
A bridging loan for land is a type of bridging finance that is secured on an asset in the form of land. Land bridging loans let you to buy or raise finance against land quickly, or when longer term finance options aren’t yet available.
This can include land with or without planning permission and agriculture or farmland.
How can a land bridging loan benefit me?
The main benefits of bridging finance for land is that they allow you to purchase or refinance plots of land when speed is of the essence.
Land bridging loans are a great financial tool for property developers looking to buy land for development or raise cash for planning gain.
Bridging finance for land isn’t just for property developers however, they can also be used by business owners such as farmers looking to buy further parcels of land or to raise cash quickly.
How do they work?
Land bridging finance is secured finance and works in the same way as a standard bridging loan, except the primary security for the loan is land.
These loans allow you to bridge the gap before either selling, or refinancing the land.
What are bridging loans for land used for?
Land bridge loans are used for a number of reasons, primarily:
- To raise capital.
- Planning gain, often called planning gain finance.
- Raising money against agricultural land.
- To purchase or refinance land quickly.
Key product features
Key Features
Max LTV
Up to 65%
Interest rate
From 0.75% per month
Charge types
1st & 2nd
Term
1-36 months (maximum 12 months for regulated loans)
Interest type
Added to the loan, deducted or serviced
Completion timescale
3 days – 4 weeks
Criteria
Land with or without planning acceptable
Available to individuals, partnerships, LLPs, Ltd companies, offshore companies, foreign nationals and pension funds
Minimum applicant age 18 years – no maximum age
Available in England, Scotland, Wales and Northern Ireland
Adverse credit accepted (on a case by case basis)
Land bridging finance lending criteria
Will I qualify for a land bridging loan?
To be eligible for a land bridging loan, lenders will look at the following lending criteria:
- The reason for the finance is needed.
- Your cash deposit or equity position.
- The land value.
- What the land is, the planning status and size of the plot.
- Your credit history.
- Your repayment strategy.
If a lender is happy with the above, it is likely that you qualify for land bridging finance. We’re able to offer finance for most borrowers, as long as there is enough deposit or equity to satisfy lenders.
What loan term can you offer?
Lenders offer loan terms against land from 1 month up to 24 months. The term is often determined by your repayment plan, often call the exit.
If you are planning to sell the land to repay the debt, the loan term needs to be long enough for a sale to be realistic, this should be a minimum of 9 months unless you have a sale agreed already.
If you are to refinance the debt to exit, the term can be shorter and will depend on how long the refinance will take.
What checks will the lender carry out during the application process?
The lender will be looking at the suitability of the land as security for the loan, your planned repayment strategy and your profile for borrowing purposes.
Will I qualify if I have bad credit?
Yes, lenders do consider finance applications for borrowers with varying credit profiles.
Your creditworthiness will often impact the interest rate you will pay but ultimately the lender will be assessing the security for the loan.
We offer a range of bad credit bridging loans for borrowers with adverse credit.
Who can take out land bridging finance?
- Individuals.
- Partnerships or LLP’s
- Limited Companies, including Offshore.
- Pension Funds.
- Bridging loans for small businesses can be used by companies which are buying land.
How much can I borrow?
Minimum and maximum loan sizes
The minimum loan size for land is ÂŁ10,000 with no maximum loan. The maximum loan will be decided using the land value, equity position and repayment plan.
Different lenders have different products, to see how much you can borrow speak to one of our bridging loan advisors.
For loans over ÂŁ1,000,000, we offer a range of specialist large bridging loans.
Loan to value requirements
We can offer up to 75% loan to value (LTV) for land with planning permission. This means that for a plot valued at ÂŁ100,000, a loan of ÂŁ75,000 could be borrowed.
If other security is offered, 100% LTV bridging is available. This can include your home, other plots of land, residential or commercial property.
60% LTV tends to be the maximum if the land has no planning permission or requires planning gain. As per the above example, this means that you could borrow ÂŁ60,000 against a plot valued at ÂŁ100,000.
In practice however, lenders tend to offer higher LTVs on higher value plots. When looking to borrow between ÂŁ10,000 to ÂŁ75,000, 50% LTV is likely the maximum loan offered.
Does income affect my maximum loan?
Income doesn’t affect the loan amount for standard land or property development related bridging. The loan will be based on the status of the plot itself i.e. planning status, the amount of acres and what the site is currently used for.
If the loan is for a business such as a trading farm and the repayment strategy is to refinance onto a commercial mortgage, income is usually assessed to ensure you can borrow enough to exit.
Exit strategy & the impact on maximum loan
Your chosen exit strategy will impact the maximum loan as the lender won’t lend more money that you’re able to pay back.
If selling the land, the lender will discuss the estimated sale price with the valuer to ensure that repayment on sale is feasible.
If refinancing the land, the maximum LTV will be determined by the maximum loan available by the new lender to ensure there isn’t a shortfall.
Land bridging loan interest rates & costs
What interest rate will I pay?
The interest rate for land with planning starts at 0.75% per month however 1% per month is realistic for most loan applications.
The interest rate will be decided by the use of funds, the security for the loan and the borrower profile.
To see what bridging loan rates you are eligible for, speak to one of our bridging finance advisors.
Are there other set up costs to consider?
Yes, there are other borrowing costs to be taken into account.
The main costs are the lender arrangement fee, valuation fee and legal fees. Some bridging loan brokers also charge broker fees that can be costly.
Costs vary lender to lender, our advisors will compare costs for you to make sure you’re getting the best deal.
Are there any upfront costs to pay?
In most cases, when taking out a bridging loan for land, there are upfront costs to pay before completion. These are the valuation and legal fees.
The fees in this instance will vary depending on the value of the plot, and the amount of money you wish to borrow.
Upon application, you will be provided with a quote for these fees.
Do ABC Finance charge fees for arranging land bridging finance?
There is no broker fee charged by ABC Finance Limited on land bridging loans above ÂŁ100,000.
How to get land bridging finance
What is the application process?
The application process works as follows:
- You can speak to lenders directly, or speak with a broker that knows the land bridging market to run through your needs.
- When a lender, and product is selected, your application form and supporting documents are submitted.
- The lenders underwriter will review your application and if happy to proceed, will instruct the valuation.
- When the valuation report is back, if the details are satisfactory the offer will be issued and legals instructed.
- Both yours, and the lenders solicitor will work towards a completion date.
You can instruct valuations and legals before underwriter assessment. This will speed up the process but is at your cost should the underwriter decline your application.
Should I work with a broker or go to a lender direct?
A good land bridging loan broker is beneficial, especially if they are fee free. This is because they have years of experience in the land financing market and will know exactly where to turn, which saves you time.
A bridging broker will also assist with your application and liaise with the lender, valuer and solicitors for you.
You can source a lender yourself and many lenders do work directly with the public, however speaking with various lenders can be time consuming.
What documents will I have to provide?
To apply for a bridging loan, brokers and lenders alike require the following documents:
- Application form including finance synopsis.
- Proof of ID, i.e. Passport copy.
- Proof of residency, i.e. a recent utility bill.
- Latest 3 months bank statements.
- If exit is via a mortgage, proof of income such as trading accounts, tax return or pay slips.
How long does the application process take to complete?
The loan application process can take from 3 days to 4 weeks.
The completion time from application to funds released depends on several factors such as whether a valuation is needed and how quickly this can be done, and how fast the legal work can be carried out.
When dealing with land, the type of land, and what the land contains can affect the time of the application process.
There may also be specialist reports needed such as a contaminated land report (CLR) or tree surveys.
Some lenders are naturally faster than others, if urgency is key, you should make us aware of this upfront. We will then ensure that place your application with a lender which can complete within your timeframes.
How is my application assessed?
The loan application will be assessed on the type and size of the plot of land, and whether or not planning permission is in place.
If the land is agricultural or farmland, the lender will assess the type of farming carried out. The location of the land will also impact your application, we’re able to offer land finance in England, Scotland and Wales.
Types of bridging loans for land
Are there different types of bridging loans for land?
Yes, there are various types of bridging loans for land, a selection are as follows:
Development or planning gain
If the land has full planning permission in place already, you can use bridging finance to buy or refinance the land. This can include planning permission for developments such as residential, mixed-use and commercial, including industrial units, retail or office space.
If the land needs planning permission, or an amendment to the planning is preferred, most land bridging lenders will lend for planning gain, this is usually called planning gain finance. Planning permission amendments can include the size or number of units the land already has permission for.
If a bridging loan for development of the land is needed, most lenders won’t allow this however a small selection will. In this instance development finance tends to be more suitable.
Farming or agricultural land bridging finance
Some specialist lenders offer bridging loans against rural land used for farming or agriculture.
Farmers can use bridging finance to buy or refinance land. Additionally, you can use existing farmland to raise a bridging loan to purchase assets such as livestock, plant including farm machinery and to pay items such as a tax bill.
Bridging loans for equestrian land
Bridging lenders will offer funding for equestrian land including livery yards and studs. Common funding uses are a capital raise for business expansion, to build barns or stables or to purchase further plots of land.
Bridging loan for a campsite, caravan park or holiday parks
A bridging loan for a campsite, caravan park or holiday park can be used to purchase a site before a commercial mortgage can be arranged, to expand your business, improve income or to buy assets such as glamping pods or improve facilities.
Ransom strip land
If you require funds to purchase a ransom strip, quite often bridging finance is the go to choice of funding. Purchasing a ransom strip can make future funding, sale or property development much simpler.
Auction finance for land
If you’re looking to buy land at auction, typically the only form of finance is a bridging loan. Land auction finance allows you to complete quickly and within the auction deadline, which is usually 28 days.
Frequently asked questions
Here are some of the questions that we often hear regarding this type of finance.
Is land bridging finance risky?
Land bridging finance isn’t risky if you have a solid repayment plan in place. If for example you are looking to sell the land to repay the bridging finance, you should consider how high the demand will be given the location, price and use of the land.
What are the alternatives to bridging finance for land?
Depending on the value and use of the land, there are various finance alternatives.
A commercial mortgage can be arranged for larger parcels such as trading farms or equestrian facilities. Often, proof of income for the land will be needed to arrange commercial finance.
If you own residential property, a secured loan or a mortgage could be arranged to allow you to raise capital to invest in land.
If the land is ready to be developed, you can secure development finance against land with planning to allow you to purchase, or develop the plot.
Can I repay my loan early?
Yes, a land bridging loan can be repaid at any time during the term.
Most bridging loan lenders require the first full months interest to be paid regardless of when the loan is redeemed. Some bridging finance products carry minimum earnings periods, such as 3 months, or carry exit fees which are typically a months interest and can be added to the loan.
Do I need to provide proof of income?
Most bridging loan lenders ask for proof of income as part of their loan packaging.
If you are repaying the debt via sale of an asset, proof of income can often be bypassed however if you are looking to refinance the loan onto longer term borrowing, and the new loan relies on your income, proof of income will likely be required.
In some cases, an accountant’s reference or projected future income or forecasts may suffice.
What is the minimum deposit?
The minimum deposit needed for land with planning for development is 25% plus fees and interest.
The minimum deposit needed for land with no planning for development is 40% plus fees and interest.
Agricultural land, farms, caravan parks and holiday parks etc. require a minimum deposit of 40% plus fees and interest.
Smaller parcels of land, i.e. those valued at sub ÂŁ100,000 require a deposit of 50% plus fees and interest.
Are these loans hard to get?
No, bridging finance for land is generally simple to arrange, especially when using a reputable bridging loan broker.
How do you pay back the loan?
A bridging loan for land can be repaid by either selling or refinancing the plot of land, or by selling or refinancing another asset, as long as there is enough equity to do this.
Alternatively the loan can be repaid through other forms of savings such as pensions, investments or inheritance.
Is there an age limit?
Typically the maximum age limit for land bridging finance is 85.
In some cases, lenders will accept older applicants if the exit route is solid.
Can ABC Finance help me find the best deal?
Yes, as a whole of market broker we’ll help you find the best bridging loan deal. We’ll assess loan offers and compare the interest rate and set up costs, along with turnaround times for time sensitive deals.
Why work with ABC Finance?
ABC Finance are an FCA Regulated broker and have been arranging loans and finance since the year 2000.
We have a wealth of experience in helping clients finance land, whether that is via bridging finance or a commercial mortgage.
Due to the relationships we have built with bridging finance lenders, we’re able to negotiate things like the interest rate and fees.
Is this type of finance regulated in the UK?
If you live, or plan on living or building a house to live in on the land, the loan is FCA regulated.
If however the land is for business purposes or investment, the loan is treated as non-regulated, much like a standard buy to let or commercial mortgage.
How can I calculate my expected costs?
To calculate the costs of a land bridging loan, you should add up the total interest costs along with the fees.
The difference between the gross and net finance amount is a good starting point, you should then add things like the valuation fee, which isn’t usually added to the loan.
You can use a bridging loan calculator to obtain an accurate idea of costs.
Keep reading –Â short-lease bridging loans.