Land Bridging Loans

bridging loans for land
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    Bridging Loans for Land or Development Purposes

    When it comes to taking the decision to purchase a piece of land, bridging finance is often the fastest form of lending.

    This specialist loan allows you to snap up property quickly, when other traditional types of lending may require you to wait for longer periods of time.

    Another benefit of taking a land bridge loan is that it is incredibly flexible. This means that you can make the purchase regardless of whether you do or don’t already have planning permission, utilities or direct access to the premises.

    At Bridging Options, our experience, connections and advice enable us to offer fantastic rates on land bridge loans. Please contact us for further details today.

    How difficult is it to get a land bridge loan?

    A land bridge loan is a form of short term finance, used to purchase or re-mortgage land quickly. It is often considered riskier than other forms of borrowing and because of this, additional assets may be required to secure the loan.

    Every lender will have different terms and conditions, interest rates and lending criteria. This is why it is so important to check the whole market in order to achieve the best rates for you.

    At Bridging Options, we have access to independent brokers across the UK who specialise in land bridge loans. These advisors can search the market on your behalf, to find the right rates to suit your specific circumstances.

    Can you get a land bridge loan without planning permission?

    When you purchase land using a bridge loan for development purposes, you would ideally have full planning permission already in place. Planning permission generally adds more value to the land as it outlines the intention of the lands usage and helps lenders to understand its resale price.

    Land in prime locations, however, is often in demand, so in order to be quick off the mark, prevent being gazumped or losing out to another buyer, you may need to purchase it without having all the permissions obtained.

    Alternatively, some buyers might purchase a piece of raw land and have no specific plans to build on it in the near future. This is considered to be a speculative investment. Developers may do this if they know that regeneration in the area is imminent and are relying on the land increasing in value because of this. This is a high risk strategy.

    Although some lenders may see these situations as an issue; due to the risk of planning consent being denied or the length of processing time it may take to achieve it; at Bridging Options we can cater for those with our without existing development permission.

    How much finance can you borrow for land bridging loan?

    As mentioned above, the risk to lenders on land bridge loans are considerably higher than those taken on property or for construction purposes. Because of this, the loan to value ratios offered tends to be lower.

    On average you can expect to be loaned between 60-70% if planning permission on the land exists and around 50% if land consent has not yet been granted.

    The rate of interest you pay is also variable depending on how desirable the land may be. You should also remember to factor in any fees and charges that you may incur with the lender when taking out a land bridge loan.

    At Bridging Options, we review each application on a case by case basis, and if additional security is available, then we may be able to lend even more. For more information and advice on just how much you are eligible to borrow, please contact us for no obligation quotation.

    How do I repay a land bridge loan?

    When you take out a land bridge loan, your lender will require you to show in detail how you plan to pay back the funds. This is known as your exit strategy. The most common forms of repayment include:

    • Selling the land post-development. A bridge loan provides the capital required to purchase land. Once you have acquired the correct planning permissions and have successfully built on it, then you will then be in a position to sell the property and settle the loan – hopefully achieving a significant profit.
    • Re-mortgage. Once you have secured the land through a bridge loan and your planning permission is in place, the risk to other lenders will be minimal. This will make it easier to secure longer term finance, such as a mortgage, based on the post-development value of the property. Thus, allowing you to pay back the original land bridge loan.

    Who is eligible for a land bridge loan?

    Our land bridge finance loans are suitable for residential and commercial land transactions, and are available to everyone including limited companies and individuals.

    Each application will be assessed on a case-by-case basis but, like most lenders, we take certain criteria into consideration when deciding which rates we can offer.

    • Planning permission – As discussed above, we are able to lend to those with or without planning permission already in place. However, having the correct consent in advance of the loan, will give you access to a greater choice of rates.
    • Exit strategy – Your exit strategy for repaying the loan needs to be well thought out. If a lender does not have faith that your project is realistic in terms of budget, timeframe and outcome, then they may be unwilling to lend you the land bridge loan to begin with.
    • Prior Experience – Land development projects are often complex and for this reason, some lenders may want to see evidence of past experience. Whilst this is not a necessity, it certainly helps to strengthen your submission if you can show examples of previous, successful land development projects.

    How quickly can I secure finance for a land bridge loan?

    The speed in which a land bridge loan is administered typically depends on the intended use of the land, as this is directly linked to the lenders risk exposure.

    If you’re buying a piece of land that already has utilities and street access nearby, then you are more likely to have your bridge loan approved quicker. Most lenders will conduct or request a survey of the boundaries to check that there are no land-use restrictions or anything that could impinge development.

    The less work needed the quicker you can expect to complete. If everything looks to be in hand, then you could receive your land bridge loan within a week, but if additional paperwork is required, then a couple of weeks is often more realistic.

    Although land bridge loans may take a little time to obtain, they are still considered to be a quicker form of finance than more traditional types of lending, such as a mortgage application.

    Why choose Bridging Options?

    Time is money, and if you are short of both, then speak to one of our land bridging loan experts. They have the knowledge and know-how of the land acquisition industry and can find the best rates on your behalf.

    So, let us Bridging Options do the hard work for you, by getting in touch for a no fee, no obligation quote today.

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    Commercial bridging loans offer a short-term funding solution for businesses, landlords, property developers and land owners in the UK.


    Residential bridging loans are a popular and useful form of property finance, but at Bridging Options, we appreciate that comparing different rates and terms can be complex and confusing.

    Development Loans

    Development finance offers short-term funding to those who need help with the purchasing and/or building costs of a construction project.

    Free Credit Check Report

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    Why choose Bridging Options for your land bridging loan?

    As a commercial property investor, we understand the importance of securing finance quickly and efficiently in time for your next property venture. That is why we created Bridging Options, to help businesses and commercial property investors secure the finance they need with ease and access the best deals on the market.