Pre-Planning Bridging Finance: secure the site before permission lands
Buy the site now, chase planning during the bridge, then exit to development finance or a sale with permission in hand. This is a higher risk corner of bridging, so here is the honest version of how it works.
Talk to Ashley about your deal
How pre-planning deals work
The lender advances against what the land is worth today, at its current use, while you pursue planning. If permission lands, the value jumps and your options open up: sell it on with the consent in place, or roll into development finance and build it out. The uplift is your profit, which is exactly why the lender won't lend against it up front.
If permission is refused, the loan still needs repaying, and that's the conversation to have before day one, not after. A refusal is rarely the end, appeals and amended applications succeed all the time, but they take months you've to be able to afford.
"I won't place a pre-planning deal without a written plan B. Appeal? Amend and resubmit? Sell at cost? If the answer is a shrug, the deal isn't ready."
What lenders want to see
- A planning consultant's opinion on the likelihood of consent
- Local precedent, similar consents granted nearby
- A realistic planning timeline against the loan term
- An exit both ways: with permission and without it
The stronger that pack, the better the terms. A site with a consultant's letter and three comparable consents up the road is a different conversation from a field and a hunch.
Strategic Use Cases for Developers with Bridging Finance Broker
Can you get a mortgage on land without planning permission?
Mortgages on bare land are rare, and without planning almost no mainstream lender will look at it. That's why these purchases are usually funded with a bridging loan instead: quicker, priced for the risk, and repaid once planning lands and the site sells or refinances.
Can I get a bridging loan on land without planning permission?
Yes. Fewer lenders play in this space and the terms are more cautious, but it's a well established deal type. The lender secures against the land's current value and your planning case does the rest of the talking.
What LTV can I get on land without planning?
Lower than land with consent, often around 50% of the current value, and it's case by case. The uplift you're chasing is your profit, not the lender's security, so they lend against today's value only.
What happens if planning permission is refused?
The loan still needs repaying, which is why we agree plan B before completion: appeal, amend and resubmit, or sell at cost. A refusal with a live appeal is a very different position from a refusal with no plan.
Is it worth buying land without planning permission?
It can be, that's where the biggest discounts sit. The honest test is whether you can afford to be wrong: if a refusal would sink you, the deal is too big for the plan. If you can hold, appeal or resell, the risk is priced.
What if planning takes longer than the loan term?
Extensions exist but they cost. We size the term against the council's actual determination times, not the official ones, and build in slack from the start.
Can the same lender fund the development afterwards?
Sometimes. A land-to-development pathway with one lender saves a refinance between the site purchase and the build. We structure for it where it fits.
Got a deal like this on your desk?
Tell us the numbers and we'll tell you honestly what's achievable.
Prefer to put it in writing? Email support@bridgingfinancebroker.co.uk