Land Bridging Loans UK — Finance for All Land Types, With or Without Planning
A land bridging loan is short-term, fast-acting finance used to purchase, refinance, or hold land before development, planning approval, or resale. Borrow £50,000–£5 million at up to 70% LTV, rates from 0.91% per month, terms 1–24 months. All land types across England, Scotland & Wales. Same-day decisions in principle.
What is a Land Bridging Loan?
A land bridging loan is short-term, asset-backed finance secured against a plot of land — residential, agricultural, brownfield, greenfield, greenbelt, or commercial — used to purchase or refinance land quickly, typically within 10–25 working days, with terms of 1 to 24 months. The loan is repaid through the sale of the land, refinancing onto another facility, or transitioning into development finance. Decisions are driven by land value, planning position, access and title quality, and the credibility of the exit — not the borrower's income.
Land bridging loans are arranged through specialist lenders rather than mainstream banks because land carries no rental income and may not yet have planning permission. This makes land bridging the default funding tool for property developers securing sites at auction, investors pursuing planning gain, and landowners releasing equity from existing holdings. Common uses include auction land purchases, land without planning, planning uplift plays, land banking, site assembly, permitted development conversions, and refinance or equity release.
This guide explains exactly how land bridging finance works in 2026 — the rates, LTVs, and fees; how planning status changes lender appetite; how "hope value" and GDV-based underwriting work; what lenders scrutinise; and how Aura Capital structures land deals to maximise approval speed, LTV, and certainty of completion. For sites bought under the hammer, see our auction bridging finance guide.
What land borrowers are seeing this month
Land finance has stayed active through the first half of 2026, and summer is the peak window for site acquisitions — developers want plots secured and planning applications submitted before local authority determination periods stretch over the autumn. Here's what matters for anyone raising land finance in July:
- Consented land is keenly priced. The strongest cases — residential sites with full planning — are still pricing from 0.91% per month at up to 70% LTV. We continue to match or beat directly-quoted terms across our 50+ specialist land panel.
- Summer land auctions are busy. July and September catalogues carry heavy land volume — we're structuring pre-auction DIPs and completing purchases inside the 28-day deadline, from as little as 3 working days on simple plots.
- Brownfield appetite is strengthening. The continued policy push toward previously-developed land is widening lender appetite for brownfield sites, though contamination and remediation risk is still underwritten carefully.
- GDV-based structures in demand. On no-planning sites with a credible planning thesis, select lenders are lending against projected development value — materially increasing loan size relative to current land value.
Looking at a site this summer? Get indicative terms in 60 seconds or speak to a specialist for a same-day decision in principle.
Land Bridging Loan Rates, LTV & Fees UK 2026
Land bridging loan rates in the UK range from 0.91% to 1.65% per month depending on land type, planning status, LTV, title quality, and exit strategy. Land commands higher rates than residential property bridging due to the specialist security type and planning risk.
| Land Type | Rate From (pcm) | Typical LTV | Arrangement Fee | Typical Term |
|---|---|---|---|---|
| Residential — full planning | 0.91% | Up to 70% | 1.5–2% | 6–12 months |
| Residential — outline planning | 0.99% | Up to 65% | 1.5–2% | 6–18 months |
| Residential — no planning | 1.10% | Up to 60% | 1.5–2% | 6–18 months |
| Agricultural / paddock | 1.10% | Up to 55% | 1.5–2% | 6–18 months |
| Brownfield / contaminated | 1.15% | Up to 60% | 1.5–2% | 9–18 months |
| Commercial / mixed-use | 0.95% | Up to 65% | 1.5–2% | 6–18 months |
| Greenbelt / strategic | 1.25% | Up to 50% | 2% | 12–24 months |
Planning status is the single biggest driver of your rate and LTV. A consented residential site at conservative leverage with a documented sale exit prices near 0.91% p/m at up to 70% LTV; unplanned greenbelt with a long horizon sits at the top of the range and 50% LTV. Title clarity, confirmed legal access, and a credible, evidenced exit move pricing more than anything else. Our job is to package your case with the lender that treats your site most favourably.
Monthly Interest Cost by Loan Size
Use this table to quickly estimate your monthly interest outgoing before speaking to a specialist.
| Loan Size | 0.91% pcm · Consented | 1.10% pcm · No Planning | 1.25% pcm · Strategic |
|---|---|---|---|
| £100,000 | £910 | £1,100 | £1,250 |
| £250,000 | £2,275 | £2,750 | £3,125 |
| £500,000 | £4,550 | £5,500 | £6,250 |
| £750,000 | £6,825 | £8,250 | £9,375 |
| £1,000,000 | £9,100 | £11,000 | £12,500 |
| £2,000,000 | £18,200 | £22,000 | £25,000 |
| £3,000,000 | £27,300 | £33,000 | £37,500 |
| £5,000,000 | £45,500 | £55,000 | £62,500 |
Land Bridging Loan Calculator
Estimate your monthly interest, total cost, and arrangement fee. Indicative only — final terms depend on planning status, access, title, and exit strength.
Up to £300,000 — from 3 working days on simple residential plots with a desktop valuation. Up to £750,000 — 7–10 working days on RICS desktop or AVM with a proactive solicitor. Up to £5m+ — 14–25 working days where a full RICS inspection, complex title, or structured exit is involved.
Land With Planning vs Land Without Planning
Planning status is the single biggest factor in land bridging rates and LTV. The table below shows how lender appetite changes across the planning spectrum in 2026 — and how each position is typically exited.
Full planning permission
- Conditions, S106/CIL reviewed
- Comparable consented land sales
- Clearest buyer pool
- Fastest route to development finance
Outline / PD prior approval
- Reserved matters path assessed
- Deliverability & timeline scrutinised
- Class Q / R / M evidence for PD
- Structural feasibility on conversions
No planning / strategic
- Access & title quality lead the case
- Exit-first structuring essential
- Evidence of emerging policy support
- Longer horizon on greenbelt
Land auction legal packs regularly contain access issues, overage clauses, restrictive covenants, flood-risk notes, or contamination disclosures that materially affect lender appetite and valuation. Share the legal pack with your solicitor and bridging broker before bidding — not after winning the lot. A pre-auction DIP also confirms your maximum viable bid. See our auction bridging finance guide for the complete pre-auction checklist.
Lender Appetite Across the Planning Spectrum
| Planning Position | Typical Appetite | Underwriting Focus | Common Exits |
|---|---|---|---|
| Full planning permission | Strongest | Conditions, S106/CIL, comparables | Sell on consent / dev finance |
| Outline planning | Medium–strong | Reserved matters, deliverability | Sell post-milestone / refinance |
| PD prior approval | Medium | Class evidence, feasibility | Sell / dev finance post-approval |
| Allocated (local plan) | Case dependent | Evidence-led case, constraints | Sell after progress / refinance |
| Pre-app / no planning | Conservative | Access/title, exit-first structure | Short bridge to sale / security |
| Greenbelt / strategic | Most conservative | Long horizon, emerging policy | Sale as speculative uplift |
All Land Types We Can Structure Bridging Finance For
Land bridging loans cover every major site category across England, Scotland, and Wales. Here is how specialist lenders approach each type and what drives their decisions.
Residential Development Land
Infill plots, backland, greenfield, consented schemes. Clearest buyer pool, strongest lender appetite, and highest LTV of all land types.
From 0.91% · 70% LTVAgricultural & Paddock Land
Farmland, pasture, arable, paddocks. Requires a specialist RICS rural valuer. Strongest cases have permitted development or a planning-led rationale.
From 1.10% · 55% LTVBrownfield Land
Former industrial, contaminated, or previously developed land. Government sustainability drive makes brownfield increasingly fundable — but remediation risk is underwritten carefully.
From 1.15% · 60% LTVCommercial & Mixed-Use Land
Employment land, industrial plots, retail land, and mixed-use allocations. See our commercial bridging loans guide.
From 0.95% · 65% LTVGreenbelt & Strategic Land
Greenbelt, local plan allocations, option land with a long planning horizon. Most conservative terms. Evidence of emerging policy support significantly improves appetite.
From 1.25% · 50% LTVGreenfield Land
Undeveloped land without prior use. Appetite depends heavily on the planning thesis, access, local demand evidence, and exit visibility. Often combined with planning uplift plays.
From 1.10% · 60% LTVSelf-Build Plots
Secure the plot now, transition to a self-build mortgage or development finance as the project matures. The bridge clears quickly once the site is de-risked with planning or title resolved.
Self-build / sale exitGarden Plots & Infill Sites
Ransom strips, overgrown garden plots, backland infill. Often the highest value per sq m in urban areas. Title and access are the primary underwriting concern.
From 0.95% · 65% LTVWoodland & Car Parks
Niche land categories. Lenders typically require a very clear alternative-use rationale or planning strategy, and a thin buyer pool is discounted in valuation.
Case by caseWe arrange land bridging loans on sites across England, Scotland, and Wales through our panel of 50+ specialist lenders. Scottish land law (separate from English land law) requires specialist solicitors and affects legal timelines — we manage this end-to-end. Contact us for Northern Ireland land enquiries.
"Hope Value" and Land Speculation Bridging
Hope value (sometimes called planning hope value or speculative value) is the additional value attributed to land above its existing use value, reflecting the possibility — but not the certainty — of future planning permission. Agricultural land worth £8,000 per acre in existing use might be valued at £25,000–£50,000 per acre on a hope value basis where there is credible evidence that residential planning could be achieved.
Most mainstream lenders will not lend against hope value — they require evidence-based current use value. However, a small number of specialist land lenders will consider hope value as secondary comfort, particularly where:
- The planning case is evidence-led with nearby precedents, local plan allocations, or pre-application engagement
- The borrower is an experienced developer with a track record of securing planning on similar sites
- The loan is structured conservatively against the lower of purchase price or current use value, with hope value upside as secondary comfort only
- A clear exit is evidenced — sale to a developer on a conditional contract, or a signed option agreement
Lenders instruct a RICS valuer for a current open market value and sometimes a GDV-based assessment. The loan is calculated as a percentage of the current open market value — not the hope value. On sites where hope value is significant, GDV-based underwriting (60–70% of gross development value) may be available from select lenders and can materially increase the loan amount relative to current land value. Ask our team whether your site qualifies for GDV-based underwriting.
How Lenders Assess Land Bridging Applications
Land is "risk by detail." Five areas receive the most scrutiny — the clearer the fundamentals, the faster and more favourably underwriting moves.
1. Land Value & Valuation
- Advance against current open market value (RICS)
- AVM — simple plots, same day, sub-55% LTV
- Desktop — 1–2 days, eligible lower-LTV plots
- Full RICS inspection — most land, 3–7 days
- GDV-based only where explicitly agreed
2. Access & Title
- Legal access confirmed & documented
- Overage / clawback clearly quantified
- Restrictive covenants (indemnity often resolves)
- S106 / CIL obligations summarised
- Boundary clarity; unregistered land adds time
3. Exit Strategy
- Sale post-planning uplift with comparables
- Closed bridge — contracts exchanged (best rates)
- Refinance to development finance
- Development exit where build has started
- Evidenced, not merely stated
4. Planning & Borrower
- Decision notice, conditions, OS/boundary plan
- Pre-app response or planning statement
- S106, CIL, pre-commencement conditions
- Asset & exit-led — experience helps, not mandatory
- Professional team: planner, land solicitor, engineer
Unregistered land, missing title deeds, undisclosed covenants, and disputed boundaries add 1–3 weeks to legal completion. Instructing a specialist land solicitor before enquiry and commissioning searches immediately is the single biggest accelerator for time-critical cases — especially auction purchases.
How to Apply for a Land Bridging Loan: Three Steps From Enquiry to Funds
No master brokers. No networks. You deal directly with the senior advisor working your case — from the first call to drawdown.
Tell Us About the Site — Same Day
Five-minute self-quote or direct call. Provide site address, land type, purchase price/value, planning status, loan amount, term, and exit plan. We confirm indicative terms and structure within the hour. Well-packaged cases receive a Decision in Principle the same day.
Formal Written Offer — 24–48 Hours
We go direct to lenders — no master brokers, no added fees. We access 50+ specialist land lenders including those with appetite for no-planning land, agricultural security, and GDV-based structures. Valuation is instructed in parallel. Formal offer typically in 24–48 hours on packaged applications.
Funds at Your Solicitor — 10–25 Days
We manage the RICS land valuation and legal end-to-end. Specialist land solicitors conduct environmental, drainage, planning, highways, and title searches. Most land deals complete in 10–25 working days. Urgent auction purchases complete from 3–10 working days using desktop valuation and proactive solicitors.
Land Bridging Case Studies: Recent Deals Closed at Pace
Case Study 1 — Auction Plot → Planning Gain → Sale, Cheshire
Net Profit ~£112kStrategy: Greenfield plot with no planning bought at auction → full planning secured for 2 detached dwellings → sold to a regional housebuilder.
Outcome: Bridging arranged in 9 working days to hit the 28-day auction deadline via our auction bridging finance route. Full planning granted in month 9. Net profit after all costs: ~£112,000.
Case Study 2 — Agricultural Barn → Class Q → Development Finance, Oxfordshire
GDV £1.85mStrategy: Agricultural land + barns → Class Q prior approval for 4 × 3-bed residential units → refinanced onto development finance.
Outcome: Class Q prior approval granted in month 6. Refinanced to development finance at 65% LTGDV in month 9. See our permitted development finance guide. £32,686 of bridging unlocked a £1.85m GDV scheme.
Case Study 3 — Former Industrial Yard → Mixed-Use Consent → Sale, Birmingham
Net Profit ~£480kStrategy: Brownfield former industrial yard → mixed-use consent (24 residential units + 400 sqm commercial) → sale with planning.
Outcome: A positive pre-application officer response was obtained before purchase. Mixed-use consent secured in month 13. Net profit on £217,000 equity invested: approximately £480,000. View all Aura Capital case studies →
Why Aura Capital for Land Bridging Finance
We don't operate through master brokers or networks. We go direct — a wider panel, faster decisions, and better terms than most borrowers achieve independently. Over the past five years our team has transacted over £500 million in bridging and development finance.
Market-Leading Rates
Direct lender relationships mean broker-only rates from 0.91% per month — unavailable direct. Complete cost illustration upfront. No hidden fees, no surprises at completion.
Land-Specialist Structuring
We understand how lenders classify land types, value planning risk, and assess exit credibility. Expert packaging means better LTV, faster decisions, and fewer delays — even on complex or constrained sites.
Bespoke Structures
GDV-based underwriting, cross-collateralisation, rolled-up interest, and non-standard security all available. We structure around your timeline, exit, and site — not a pre-set product grid.
All Securities & Borrowers
Residential, agricultural, brownfield, greenbelt, and commercial land funded. Adverse credit, overseas borrowers, newly incorporated SPVs, and unregistered land all considered. No upfront fees.
Same-Day Decisions
Well-packaged cases receive a Decision in Principle the same day. Completions from 3 working days on simple cases. Auction deadlines met regularly.
End-to-End Managed
Your dedicated senior advisor manages every stage — from feasibility through valuation and legal to drawdown. Direct communication, proactive updates, no call centres.
Frequently Asked Questions
A land bridging loan is short-term, asset-backed finance secured against a plot of land. Lenders advance 50–70% of the current RICS-assessed open market value with terms of 1–24 months, repaid via a defined exit — sale of the land or refinance to development finance. Decisions are driven by land value, planning position, and exit strategy rather than income or affordability. Land bridging loans typically complete in 10–25 working days.
Yes — land bridging without planning is available, though terms are more conservative. Most specialist lenders advance up to 55–60% of current open market value (not hope value) and require a clear planning rationale backed by precedent or pre-application evidence, a realistic timeline to consent or sale, and a credible evidenced exit. Some lenders also offer GDV-based underwriting — lending against 60–70% of projected gross development value assuming planning is achieved — which can significantly increase the available loan.
Land bridging rates in 2026 range from 0.91% to 1.65% per month depending on land type and planning status: residential with full planning 0.91–1.2% (up to 70% LTV); outline planning 0.99–1.2% (up to 65%); no planning 1.10–1.5% (up to 60%); agricultural 1.10–1.65% (up to 55%); commercial/mixed-use 0.95–1.45% (up to 65%); greenbelt/strategic 1.25–1.65% (up to 50%). We guide every client on how to structure their deal to minimise costs.
Land bridging: funds land purchase only, based on current land value, 6–18 months typical, completes in 10–25 days, exit via planning uplift sale or refinance to development finance.
Development finance: funds land and construction in one facility, based on Gross Development Value, 12–24+ months, requires planning consent and a professional team, staged drawdowns monitored by a project monitor. The typical sequence is land bridge (acquire site, achieve planning) → development finance (fund construction) → sales or long-term refinance.
Hope value is the premium above existing use value reflecting the possibility of future planning. Most lenders do not lend against it — they anchor the loan to the RICS-assessed current open market value. A small number of specialist land lenders will consider hope value as secondary comfort where the planning case is evidence-led, the borrower is experienced, the loan is structured conservatively against current use value, and a clear exit is documented. GDV-based underwriting is available from select lenders on strong sites.
- Up to £300,000: from 3 working days (simple plots, desktop valuation)
- Up to £750,000: 7–10 working days (RICS desktop or AVM)
- Up to £5m+: 14–25 working days (full RICS, complex title)
Same-day DIP available. Speed levers: desktop/AVM valuation, title and legal documents shared immediately, a proactive specialist land solicitor already instructed, and OS/boundary plan plus access evidence ready on day one.
Yes — auction land is one of our most common use cases and we regularly complete within the 28-day deadline. Critical preparation: instruct a specialist land solicitor and obtain a legal-pack review before bidding; get a DIP confirmed before auction day; and confirm access, title, and any overage or constraint issues before the hammer falls. See our auction bridging finance guide for the full checklist.
Maximum LTV by land type: residential with full planning up to 70%; residential without planning up to 60%; agricultural up to 55%; commercial/mixed-use up to 65%; greenbelt/strategic up to 50%. GDV-based underwriting (60–70% of projected gross development value) may be available for experienced developers on sites with strong planning prospects. 100% funding is possible in some cases where additional property security is provided (cross-collateralisation).
Yes. Most UK land bridging is structured through corporate entities — UK limited companies, LLPs, newly incorporated SPVs, offshore holding companies, and trusts are all accepted by specialist lenders. For new SPVs, most lenders require personal guarantees from directors. Adverse credit is also considered — specialist lenders focus on land value and exit; satisfied CCJs, discharged bankruptcy, and historical defaults are often acceptable, typically at lower LTV and a modest rate premium. See our bad credit bridging loans guide.
Ready to Fund Your Land Purchase?
Indicative terms in under five minutes. Same-day decisions, rates from 0.91% per month, loans from £50,000 to £5 million, with or without planning. No upfront fees, no obligation.
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