Bridging Finance for Land.
Bridging finance for land can be secured on land with or without planning permission. Bridging loans can be secured in as little as 48 hours and for a term of up to 24 months.
Bridging finance for land with planning.
As an independent broker we work with the whole of the market. Funding land with planning permission for a development is straight forward. The terms for land with planning permission will be considerably better as there is less risk to the lender.
Bridging Finance for land without planning.
There are less lenders in the marketplace willing to lend on land without planning. The reason is that land without planning represents more risk to the lender and the developer as there are no guarantees that planning permission will be granted.
When securing land without planning a lender may insist on a secondary security such as another development site or property.
Lenders will be looking for the developer to have plenty of experience at securing land and obtaining planning permission. An indication from the council as to the likelihood of planning will usually be sought.
The main considerations for the lender in both scenarios will be:
- Loan to Value – Limits will apply on day one, during the build and at the end of the project. Typically, we can secure 90% of total costs including purchase price, build costs and professional fees
- The Exit – How will you repay the bridging loan. Sale or refinance are the usual options.
- The Team – You will need a good team of property professionals working with you including an architect, reputable builder and an experienced solicitor.
To discuss bridging finance for land with or without planning please contact the commercial team at Fox Davidson.