| Total security value | ___ |
| Gross loan amount | ___ |
| Gross LTV | ___ |
| Interest rate | ___ |
| Term (months) | ___ |
| Minimum term (months) | ___ |
| Assumed arrangement fee @ 2% (min £2,000) | ___ |
| Interest Retained | ___ |
| Monthly Serviced Interest | ___ |
| Admin fee | ___ |
| Indicative day 1 Net loan advance | ___ |
Many developers rely on bridging loans for fast, flexible financing, and it can be the optimal solution to achieve a land purchase.
In this guide, we'll run through how bridging finance works for land investments - and how to get the best deals!
Contact business finance broker on 0330 304 3040 for any assistance with finding a bridging loan for land, or drop us a message at info@revolutionbrokers.co.uk.
You can, and the process works similarly to financing a property purchase. Bridge finance is much faster to arrange than a mortgage, although it is only short-term and does carry higher interest rates.
If you're buying land with planning permission, you can use bridging finance for either residential or commercial investments, and the lender will primarily be interested in your exit strategy.
Land finance can be challenging, as most bridge lenders prefer property investments at a lower risk. However, if you have sufficient security, and can demonstrate how you will repay the loan, there are options.
Your exit strategy determines how you plan to pay back the short-term bridge loan - some of the common methods include:
There are, yes, but a lot depends on how likely you are to secure permission in the future.
If permission is refused or takes a long time to secure, you might be in a difficult position with repaying the bridging loan, so this is a much higher risk proposition.
Some niche lenders will finance land without planning, but you will need to pay a substantial deposit, with some LTV caps as low as 50%.
Usually, the LTV will be limited on a land purchase, and you can borrow up to 65% of the investment value.
If there is no planning permission, you will need a higher deposit.
The rates are usually higher than for property bridging loans, but you can find competitive deals through an independent broker.
Lenders assess every bridging loan application on its own merit, but in general, they will look at:
There are indeed - if you are a limited company, or a Special Purpose Vehicle, you can take out a commercial bridging loan on a land purchase.
Land investments are a specialist area. Therefore, you need an independent, whole-of-market broker to negotiate bridging loan deals on your behalf and assess your circumstances to determine the best lenders to apply to.
To explore your bridging loan options, contact Revolution on 0330 304 3040, or drop us a message to info@revolutionbrokers.co.uk.
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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.
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