Land Bridging Loans UK for land with or without planning permission
Land rarely fits a mortgage. There's no rent, often no planning yet, and the best sites go at auction or off-market on tight deadlines. A land bridging loan funds the purchase or refinance now and gives you time to get planning, arrange development finance or sell. Planning status drives the terms: consented land gets the best rates and highest LTV.
We arrange land bridging loans and short-term land finance across England, Scotland and Wales from a panel of 50+ lenders. From around 0.99% a month and up to 65% LTV on qualifying land with full planning. Land without planning typically from 1.10% and 50% to 60% LTV. £26,000 to £20 million, over 1 to 24 months.
On this page
Land bridging loans: the short version
- A land bridging loan is short-term finance secured on land to buy, refinance or release equity before planning, development finance or a sale.
- Planning status is the biggest driver of rate and LTV.
- With full planning: from around 0.99% a month, up to 65% LTV on qualifying cases.
- Without planning: typically from 1.10% a month and 50% to 60% LTV. Agricultural, brownfield and greenbelt land sit lower.
- Most lenders lend on current value, not hope value. Lending against GDV is specialist and evidence-led.
- Every case needs a full RICS land valuation and a clear exit. Straightforward cases complete in days to a few weeks.
Buying without planning? Read the guide first: How to finance land without planning permission: LTV, exits and pitfalls.
What is a land bridging loan?
A land bridging loan is short-term finance secured on land, whether residential, agricultural, brownfield, greenfield, greenbelt or commercial. It's used to buy or refinance land quickly, or release equity from land you own, for 1 to 24 months. It's repaid by selling the land, refinancing onto development finance, or another defined exit.
Mainstream lenders don't lend on land because it produces no income and often has no planning. That's why land bridging is the normal way developers secure sites at auction, investors buy land to pursue planning, and landowners raise money against existing holdings.
The loan is set by three things: what the land is worth today, how far along the planning is, and how you'll repay. Get those clear and the case moves quickly. Leave them vague and it doesn't move at all.
Land bridging loans with planning vs without planning permission
This is the single biggest factor in what you can borrow and what it costs. Full planning removes the lender's biggest risk, so it gets the best terms. Without planning, the lender has to assume the land may only ever be worth its current use, so it lends less and charges more.
| With full planning | Outline or PD prior approval | Without planning | |
|---|---|---|---|
| Rate from | Around 0.99% pm | Around 0.99% pm | Around 1.10% pm |
| Typical max LTV | Up to 65% | Up to 65% | 50% to 60%, often less |
| Lender appetite | Strongest | Medium to strong | Conservative |
| What lenders check | Conditions, S106 and CIL, comparable consented sales | Reserved matters, deliverability and timescale | Access, title and an exit-first structure |
| Typical exits | Sell on consent or refinance to development finance | Sell after the next planning milestone, or refinance | Short bridge to a sale, or extra security |
| Risk to the lender | Lowest | Moderate | Highest |
What actually changes between the two
With full planning
- Valuation: based on the value of a consented site, supported by comparable consented land sales
- Lenders: most land lenders will quote, so pricing is competitive
- Exit risk: low, because a builder or development lender can take it straight on
Without planning
- Valuation: existing use value (EUV), meaning what the land is worth as it is today, such as farmland or paddock
- Lenders: a smaller, specialist group, often at 40% to 60% LTV of EUV
- Exit risk: higher, because it depends on a planning decision you don't control
Planning isn't a simple yes or no, either. Lender appetite improves step by step: no planning, then a positive pre-application response, then allocation in the local plan, then outline consent, then full consent, then conditions discharged. Each step widens the lender pool and moves the LTV up.
What lenders want to see on a site without planning
- A pre-application response from the council, ideally positive
- Whether the site is allocated or emerging in the local plan
- A planning consultant's report on the likelihood of consent and the likely scheme
- Precedents: similar consents nearby
- A realistic timescale to a decision, and a fallback exit if it's refused
If you agree to pay a price that assumes planning will come, but the lender values the site on EUV, the loan can fall well short and you'll need to fund the gap yourself. Get a decision in principle and a realistic valuation view before you commit to the price.
Along the spectrum, land allocated in a local plan sits between outline and no planning, while greenbelt and strategic land with a long horizon is the most conservative of all, typically around 50% LTV. If you're converting agricultural buildings under Class Q, see permitted development finance.
Land legal packs often hide access problems, overage clauses, restrictive covenants, flood risk or contamination, and any of those can change the lender's appetite and the valuation. Have your solicitor and us review the pack before you bid. A decision in principle before the auction also tells you your maximum sensible bid. See auction bridging loans.
Hope value and GDV: what land bridging lenders actually lend against
Hope value is the extra value land has above its current use because planning might be granted one day. For example, farmland worth around £8,000 an acre as farmland might be valued at £25,000 to £50,000 an acre on a hope value basis where there's a credible planning case.
Most lenders won't lend against hope value. On land without planning, they lend a percentage of the existing use value (EUV), the RICS value of the land as it's used today, so a site you're paying a premium for in anticipation of planning may support a smaller loan than you expect. A small number of specialist lenders will treat hope value as extra comfort, not as the basis of the loan, where:
- The planning case has evidence: nearby precedents, a local plan allocation or a positive pre-application response
- The borrower has a track record of getting planning on similar sites
- The loan is sized on the lower of the purchase price or current use value
- The exit is evidenced, such as a conditional sale to a developer or a signed option
On some sites with a strong planning case, select lenders will lend against the projected gross development value, typically 60% to 70% of GDV, for experienced developers. It can increase the loan a lot, but it's evidence-led, less common, and usually needs a clear route to planning and development finance. Assume current-value lending unless we've confirmed otherwise.
Land bridging loan rates, LTV and costs
Headline "from" rates are only available on the very strongest cases, so it's more useful to think in typical ranges. Rates typically run from around 0.99% to 1.65% a month, depending on the land type, planning status, LTV, title and exit. Land costs more than residential bridging because there's no income and planning risk is often involved. Asking for a lower LTV often improves both the rate and the choice of lenders.
| Land type and planning | Rate from | Typical max LTV | Typical term |
|---|---|---|---|
| Residential, full planning | 0.99% pm | Up to 65% | 6 to 12 months |
| Residential, outline planning | 0.99% pm | Up to 65% | 6 to 18 months |
| Commercial or mixed-use | 0.99% pm | Up to 65% | 6 to 18 months |
| Residential, no planning | 1.10% pm | Up to 60% | 6 to 18 months |
| Brownfield | 1.15% pm | Up to 60% | 9 to 18 months |
| Agricultural or paddock | 1.10% pm | Up to 55% | 6 to 18 months |
| Greenbelt or strategic | 1.25% pm | Up to 50% | 12 to 24 months |
How the strength of your application changes it
| Application | What it looks like | Rate | Max LTV |
|---|---|---|---|
| Strong | Full planning with pre-commencement conditions discharged, and an agreed exit such as a sale or development finance in place | The from rate | Land-type maximum |
| Standard | Planning or outline consent with conditions to discharge, and an evidenced exit not yet agreed | About +0.10% pm | About 5% lower |
| Early stage | No planning or an application pending, with the exit depending on the outcome or a future sale | About +0.20% pm | About 10% lower |
For clean credit and loans over £100,000. Every case is priced individually.
The full cost
| Cost | What to expect |
|---|---|
| Interest | From around 0.99% pm, retained, rolled up or paid monthly. On £500,000 at 0.99%, that's £4,950 a month |
| Arrangement fee | Typically 1.5% to 2% of the loan, deducted on completion |
| Valuation | A full RICS land valuation on every case, usually 3 to 7 days to inspect and report |
| Legal fees | Yours and the lender's. Specialist land solicitors are worth it |
| Broker fee | None upfront. We're paid by the lender on completion, disclosed before you proceed |
Gross loan vs the cash you actually receive
On land this matters more than on most bridging, because the LTVs are lower and the rates higher, so fees and retained interest take a bigger share of the loan.
| Example: £400,000 site without planning | Amount |
|---|---|
| Gross loan at 50% LTV | £200,000 |
| Less arrangement fee at 2% | −£4,000 |
| Less 12 months' retained interest at 1.10% pm | −£26,400 |
| Cash released on day one | £169,600 |
| Your contribution to the purchase, before valuation and legal costs | £230,400 |
So a 50% loan is really about 42% of the price in cash. Rolling up the interest instead of retaining it increases the day-one cash, but the amount to repay at the end goes up.
Remember the loan is a percentage of the land's value, and the fee and any retained interest come out of it. On a purchase you fund the difference, plus your costs. The calculator shows your day-one net advance and your contribution.
Model your land deal
Pick the land type and how strong your application is. The rate and LTV cap adjust automatically. For a full cost breakdown, use the land bridging finance calculator.
Types of land a bridging loan can fund
Residential development land
Infill plots, backland, greenfield and consented schemes. The clearest buyer pool, the strongest appetite and the highest LTV.
From 0.99%, up to 65%Agricultural and paddock
Farmland, pasture and paddocks, valued by a specialist rural surveyor. Strongest with permitted development or a planning rationale.
From 1.10%, up to 55%Brownfield
Former industrial or previously developed land. Policy support is widening appetite, but contamination and remediation are underwritten carefully.
From 1.15%, up to 60%Commercial and mixed-use
Employment, industrial, retail and mixed-use land. See commercial bridging.
From 0.99%, up to 65%Greenbelt and strategic
Greenbelt, allocations and option land with a long horizon. The most conservative terms, improved by evidence of emerging policy support.
From 1.25%, up to 50%Self-build, garden and infill plots
Secure the plot, then move to a self-build mortgage or development finance. Title and access are the main concerns. Woodland and car parks are considered case by case.
Case dependentWhen is a land bridging loan used?
The usual path from land to build
Land bridge
Buy the site quickly, on current or existing use value.
Planning
Secure consent and discharge the pre-commencement conditions. Each step improves what lenders will offer.
Refinance or sell
Refinance onto development finance, which is lent against GDV, or sell the consented site to a builder.
Build and exit
Development finance funds the build. A development exit bridge can give time to sell at the end.
Auction purchases
Complete within the 28-day deadline, from as little as 7 working days on simple plots with clean title.
Off-market deals
Move faster than other buyers when a vendor wants certainty and speed.
Planning gain
Buy land with a credible planning case, secure consent, then sell or develop at the higher value.
Site assembly
Buy adjoining plots or a ransom strip to unlock a larger scheme.
Holding before development finance
Own the site while conditions are discharged and development finance is arranged. See development exit for the end of the build.
Equity release
Raise money against land you own to fund your next project.
Land bridging loan criteria: what lenders look at
Land is all in the detail. These areas get the most scrutiny, and the clearer they are, the faster and better your terms.
Value
A full RICS valuation of current market value. GDV only where it's been specifically agreed.
Access and title
Legal access confirmed, overage or clawback quantified, covenants reviewed, S106 and CIL summarised and boundaries clear. Unregistered land adds time.
Planning
Decision notice, conditions, boundary plan, pre-application response or planning statement.
Exit
A sale with comparables, a closed bridge with contracts exchanged (the best rates), or refinance onto development finance. It needs to be evidenced.
Borrower
Experience helps but isn't essential. A professional team of planner, land solicitor and engineer strengthens the case.
Who can apply
Individuals, limited companies, LLPs, new SPVs, overseas companies and trusts, across England, Scotland and Wales. Directors usually give guarantees.
Unregistered land, missing deeds, undisclosed covenants and boundary disputes can add one to three weeks. Instructing a specialist land solicitor early and ordering searches straight away is the single best way to speed up an auction or urgent purchase.
How a land bridging loan works, and how fast it completes
Most land deals complete in 10 to 25 working days. Simple plots up to around £300,000 with clean title can complete from 7 working days, up to £750,000 typically in 10 to 15, and larger or complex sites in 14 to 25. Timings depend on title and the valuation, so there are no guarantees.
Tell us about the site
Address, land type, price or value, planning status, loan, term and exit. We confirm indicative terms and a decision in principle, usually the same day.
Lender and valuation
We compare our whole-of-market panel, including lenders who take land without planning, agricultural land and GDV structures, and instruct the RICS valuation straight away. Formal offers typically follow within 24 to 48 hours on well-prepared cases.
Legals and completion
Specialist land solicitors run the environmental, drainage, planning, highways and title searches, and funds go to your solicitor once everything is satisfied.
Land bridging loan case studies
Auction plot to planning gain, Cheshire
A greenfield plot with no planning, bought at auction for £180,000. £108,000 at 60% LTV and 1.25% a month, arranged in 9 working days. Full planning for two detached homes came in month 9, and the plot sold to a regional housebuilder for £340,000. Net profit after all costs was about £112,000.
£108,000, 60% LTV, 9 working daysAgricultural barns to Class Q, Oxfordshire
Agricultural land and barns bought for £420,000 with £231,000 at 55% LTV and 1.35% a month. Class Q prior approval for four homes came in month 6, and the site was refinanced onto development finance at 65% of a £1.85 million GDV in month 9.
£231,000, 55% LTV, £1.85m GDVFormer industrial yard, Birmingham
A brownfield yard bought for £620,000 with £403,000 at 65% LTV and 1.10% a month, after a positive pre-application response. Mixed-use consent for 24 homes and 400 sqm of commercial space came in month 13, and the site sold with planning for £1.3 million.
£403,000, 65% LTV, sold for £1.3mLand bridging loans: FAQs
What is a land bridging loan?
Short-term finance secured on land, used to buy, refinance or release equity before planning, development finance or a sale. Lenders typically advance 50% to 65% of the RICS current market value for 1 to 24 months, depending mainly on the planning status, and the loan is repaid from a sale or refinance.
Can I get a bridging loan on land without planning permission?
Yes, on more conservative terms. Rates typically start from around 1.10% a month, with 40% to 60% LTV of the existing use value, not hope value. Lenders want a credible planning rationale, a realistic timescale and an evidenced exit.
What LTV can I get on land with planning?
Up to 65% on qualifying residential or commercial land with full planning, where conditions are discharged and the exit is clear. Outline consent can reach 65% too. Where conditions are outstanding or the exit isn't yet agreed, expect around 5% less.
What are typical rates for land bridging?
From around 0.99% a month on land with full planning, typically 1.10% without planning, 1.15% for brownfield and 1.25% for greenbelt or strategic land. The range runs up to about 1.65% depending on LTV, title, exit and credit.
How is hope value treated?
Most lenders don't lend against hope value. On land without planning they lend a percentage of the existing use value (EUV), what the land is worth as it's used today. A few specialist lenders treat hope value as extra comfort where the planning case is evidence-led, the borrower is experienced and the loan is sized on current value. Lending against GDV is a separate, specialist structure.
How fast can a land bridging loan complete?
Most complete in 10 to 25 working days. Simple plots with clean title can complete from 7 working days. A full RICS valuation instructed on day one and a specialist land solicitor ready to go make the biggest difference.
Can I use land bridging for an auction purchase?
Yes, it's one of the most common uses. Have the legal pack reviewed and a decision in principle in place before you bid, and check access, title, overage and other constraints before the hammer falls.
What is the difference between land bridging and development finance?
Land bridging funds the land only, based on its current value, typically for 6 to 18 months, and completes in weeks. Development finance funds land and construction together, based on GDV, needs planning and a professional team, and is released in stages. The usual sequence is land bridge, then development finance, then sale or refinance.
Can I get land bridging with bad credit?
Often, yes. Lenders focus on the land's value and the exit, so satisfied CCJs, defaults and even discharged bankruptcy can be considered, usually at a higher rate and lower LTV. See bad credit bridging.
What exit strategies do lenders accept?
A sale of the land, ideally after a planning uplift and backed by comparables. A refinance onto development finance once planning is in place. Or a closed bridge with contracts already exchanged, which gets the best rates. The exit must be backed by evidence.
What do lenders want to see on land without planning?
Evidence that planning is realistic: a pre-application response, a local plan allocation, a planning consultant's report, precedents nearby, and a fallback exit if planning is refused. The stronger the evidence, the better the LTV and rate.
Is the gross loan the cash I receive?
No. The arrangement fee and any retained interest come out of the gross loan. On a £400,000 site at 50% LTV and 1.10% a month, a £200,000 loan releases about £169,600 on day one after a 2% fee and 12 months' retained interest.
How much deposit do I need for a land bridging loan?
Usually 35% to 50% of the purchase price, plus costs. Lenders advance up to 65% of value on land with full planning and 40% to 60% without, and the arrangement fee and any retained interest come out of the gross loan, so the cash you need is higher than the headline LTV suggests. Additional security over another property can reduce the deposit.
Can I get a bridging loan on agricultural land?
Yes. Farmland, pasture and paddocks are valued by a specialist rural surveyor and typically lent at up to 55% LTV from around 1.10% a month. Appetite is strongest where there is permitted development, such as Class Q barn conversion, or a credible planning rationale, and a defined exit.
Can limited companies and SPVs use land bridging?
Yes. Most land bridging goes through a company, LLP, new SPV, overseas company or trust. Directors usually give personal guarantees.
Who wrote this page
Harry Baker
Harry holds an MSc in Real Estate & Finance from the University of Reading. He arranges land bridging for developers and investors buying sites at auction, pursuing planning and moving onto development finance.
- Team transacted
- £500m+
- Lender panel
- 50+
How we compiled the figures
Rates, LTVs and timings reflect land cases placed through our whole-of-market lender panel and are reviewed monthly. Every case is priced individually.
Related bridging products
Each product page has its own criteria and rates.
Fund your site with or without planning
Send the address, land type, planning status, price or value, loan, term and exit. We'll compare the whole market and come back the same day with realistic terms, before you commit to any costs. No upfront fees.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Land bridging is subject to a full RICS valuation, underwriting, legal due diligence and exit assessment. Figures are indicative, based on our lender panel in November 2026. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is an independent whole-of-market broker, not a lender, and is not authorised or regulated by the Financial Conduct Authority. We do not arrange regulated loans or give financial advice.
