Land Bridging Loans
Bridging finance for land purchases across the UK — for development, planning gain or resale. Facilities from £25,000, with a decision in principle usually the same day.
Who We Are and What We Do
Bridging finance is usually used as an interim measure until longer-term or ‘next stage’ finance is in place. For example, funding a purchase that needs to complete before an existing property has sold — the bridge covers the gap and is repaid from the sale proceeds, or refinanced onto longer-term finance once it’s in place.
Why Choose Us?
Terms vary from lender to lender, but bridging typically runs from one month to 24 months. It is short-term finance by design — months, not years.
Rather than approaching every lender yourself, come to us. We work with around 20 core lenders and have access to around 50 more, including private funders and family offices that do not deal directly with the public. Land is a narrower market again, because many bridging lenders will not lend against it at all.
A decision in principle can usually be issued the same day. Completion with a private lender can be achieved in around five working days where the legals and valuation move quickly, and most cases complete in two to four weeks. Rates start from 0.59% per month — see our rates page for the full cost breakdown.
Experienced Team
Our directors have around 20 years in bridging and property finance between them, including land and development cases that mainstream lenders decline.
Let’s talk about how we can help you…
Tell us about the land, what you need and how the facility will be repaid. We will come back with indicative terms and an honest view of what is achievable. A decision in principle can usually be issued the same day, at no cost and with no obligation.
Bridging Finance for Land
When it comes to arranging funds to buy land, Bridging Finance 4U can help. We arrange land bridging loans to help you secure a plot where waiting for conventional funding would mean losing the opportunity. Once the relevant permissions are in place, we can also arrange finance for the development itself.
How does land bridging work?
Land bridging works much like using bridging to purchase a property. It is faster to arrange than a term facility and the criteria are more flexible. Land bought through bridging can be used for investment or commercial purposes.
Planning status makes a substantial difference. With planning permission in place, bridging is more readily available and gears higher. Without it, expect a lower loan to value and a narrower lender panel — the exit is harder to evidence when the land’s value depends on a consent that has not yet been granted.
Bridging loans to buy land
If you are looking to build, land bridging can help. Plots in sought-after areas sell quickly, so it is essential to move fast. Traditional lending can take months to approve, putting you at risk of losing the land. A bridge lets you access funds at short notice and secure the plot, with the exit typically being a sale, a refinance onto development finance, or a term facility once the build completes.
Bridging Finance for Property Purchase at Auction
Bridging finance can be used to buy land, commercial property and buy-to-let property. When you win a bid at auction you pay a 10% deposit on the day, with the remaining 90% due within 28 days. That is where a bridge comes in, covering the gap so you can secure the sale within the deadline. See our auction buyer’s playbook for the full 28-day process.
Whether you are an individual investor or a business, when you spot a favourable deal on land you may want to buy it and build — for investment or commercial use. A bridge lets you purchase the plot and fund the build. Once the development is complete, you can sell or refinance onto a longer-term facility to repay the bridge.
How Bridging Finance 4U Can Help You Get a Land Bridging Loan
Many bridging lenders in the UK won’t lend against land at all, considering it too risky. Those that will tend to want extra security and charge less favourable rates. With that in mind, it pays to work with a broker who knows which funders actually write land cases — without one you may end up paying more than you need to, or putting up additional property as security before you even get a quote.
At Bridging Finance 4U we help you arrange land bridging at a competitive rate, working with around 20 core lenders and access to around 50 more, including private funders that do not deal directly with the public. We arrange land bridging across the UK.
Can I get a bridging loan for land without planning permission?
Yes. Bridging is one of the few funding routes available for land without planning consent, though the terms are tighter. Expect a lower loan to value than land with planning, and a narrower lender panel.
The lender will want to see a credible planning strategy — pre-application advice from the local authority, a planning consultant engaged, and a realistic timeline. The exit is usually a sale once planning is granted, or a refinance onto development finance.
What loan to value can I get on a land bridging loan?
Loan to value depends primarily on planning status. Land with full detailed planning gears considerably higher than a pre-planning purchase, and serviced plots with infrastructure already in place higher again.
Location, plot size, marketability and your track record as a developer all affect where a specific case lands. Prime land with detailed consent attracts better terms than remote agricultural land with only outline permission. We will give you an accurate figure once we have looked at the site and the planning position.
How does the exit strategy work on a land bridging loan?
There are three common exits, and the lender will want to see which one is credible before offering terms.
- Onward sale. Buy at a discount, secure planning gain or improvement, then sell to a developer or self-builder at the higher value.
- Refinance onto development finance. Use the bridge to acquire the site, then move onto development finance for the build phase once planning is granted.
- Sale of the completed scheme. Where the bridge runs through to a development that is then sold in whole or in units.
Whichever exit is planned needs evidence upfront: sale comparables, heads of terms on the development facility, or a costed schedule of works.
Can I use a land bridging loan for an auction purchase?
Yes. Land at auction is one of the most common land bridging use cases. Auction lots often carry complex title, unusual boundaries, restrictive covenants or planning uncertainty that make standard finance impossible inside the 28-day completion window.
A decision in principle can usually be issued the same day. Completion runs to around five working days with a private lender where the legals and valuation move quickly, and two to four weeks on most cases. See our auction buyer's playbook for the full process.
Can I get land bridging for brownfield or former commercial sites?
Yes, though brownfield and former commercial land brings additional considerations. A Phase 1 environmental survey is usually required upfront, with a Phase 2 if anything is flagged, and the findings affect both the amount and the term.
Sites with known contamination can still be funded, but the lender may want remediation evidenced or budgeted before drawdown. Former industrial sites, petrol stations and dry cleaners frequently need this treatment.
How does land bridging differ from development finance?
Land bridging funds the acquisition only — no build costs, no professional fees, no interest reserve for the build phase. Development finance funds the land plus build costs, professional fees, contingency and rolled interest, released in tranches against completed work and verified by an independent monitoring surveyor.
Many developers use both in sequence: land bridging to secure the site quickly, then a refinance onto development finance once planning is granted and the build is ready to start. Land bridging is faster and simpler to arrange; development finance is a larger and more thoroughly underwritten facility.
What documentation do I need?
- Title documents or Land Registry office copies
- Planning status — decision notice, or pre-application correspondence
- Site plan
- Valuation or recent purchase comparables
- Developer CV showing any prior schemes
- Source of funds and identity documentation
- Environmental reports on brownfield sites
- The planning consultant's timeline and budget where consent is being pursued
The cleaner the documentation at the outset, the faster the case completes and the better the pricing.
What does land bridging cost?
Rates start from 0.59% per month, though land typically prices above standard residential investment security because fewer lenders will write it. A lender arrangement fee of 2% of the gross loan applies, with legal fees of £3,000 to £5,000, a valuation from £600, an administration fee of £495 and a telegraphic transfer charge at the lender's rate. An exit fee of 0% to 1% may apply, and a broker fee of 0% to 1% depending on complexity, disclosed in writing before you commit.
See our bridging loan interest rates page, or run your figures through the calculator.