Planning Gain Finance

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Home » Bridging Loans » Types of Bridging Loan » Planning Gain Finance


Using Bridging Loans to Secure Planning Permission

If you’re looking to raise finance against a property or piece of land while you apply for planning permission, we can help.

We offer many facilities, and our experienced team can recommend the most suitable, depending on your circumstances.

Read on below to find out more.


Below are the main criteria points to consider when taking out planning gain finance.

1 Up to 80% Loan to Value (or 100% with additional security).
2 Property in a poor state of repair considered.
3 Rates from 0.44% per month.
4 Loans from £25,000 with no maximum loan size.
5 Borrow from 1 month up to 24 months.
6 Any security considered.
7 Interest can be rolled into the loan.
8 Loans with no early repayment charges available.
9 We will consider any exit route.
10 Refurbishment or conversion accepted.
11 Adverse credit accepted.
12 Loans available throughout the UK.

How Much Can I Borrow?

We can fund up to 85% of the current market value of the security property, if that’s less than 65% of the hope value. We can offer facilities such as the above for loans between £100,000 and £1,000,000.

If you’re looking for more, we can lend up to 80% of the current open market value with no maximum loan size.

How Much Will It Cost?

The interest rate charged will depend on what is currently on the site and the loan to value requested. We offer bridging loans on the following terms:

Security Max LTV Rates From
Residential (Unregulated) 80% 0.44%
Residential (Regulated) 70% 0.49%
Commercial 70% 0.65%
Land With Planning 65% 0.75%
Land Without Planning 50% 1.00%

Applications are also subject to a lender arrangement fee, usually 2% of the loan amount. This is sometimes reduced where the requested loan amount is large and can be as low as 1% in some cases.

How Long Does Planning Gain Finance Take to Complete?

We can fund your bridging loan the same day, where the valuation and legal pack are already fully completed, although this is very rare.

In general, you can expect your planning gain bridging loan to take between 5 days – 2 weeks to complete.

How Does It Work?

This type of borrowing is designed to allow investors to purchase sites, either land or property, that has potential for planning permission.

Once the site is purchased, a planning application is then submitted. Once this is approved, the site will generally have increased in value and can be sold for a profit or developed by the borrower.

Finance is only generally used to fund the planning process. Once permission has been granted, development finance is generally used to fund the development project.

How Will My Application Be Assessed?

The lender will need to be comfortable with the security offered in its current form. This will protect them in the event of planning permission being declined.

In most cases, the lender will want to know what your backup plan is should your planning application be refused.

Some lenders may have experience in planning gain and will look at the viability of your proposed application. To give them a picture of this, they will tend to look at the following:

  • The planning history of the site/land. Previously declined applications may indicate that the planning is difficult to achieve on the site.
  • Is the site in the local plan?
  • Is there precedent locally which would suggest that your application is likely to be successful?
  • Is the proposed application in keeping with the area?
  • Do you or your architect have experience of these types of applications in your area?

Of course, this list is not exhaustive, but will give you some idea of the checks undertaken.


About The Author

This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.

Gary Hemming CeMAP CeFA CeRGI CSP  -  
Commercial Lending Director

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