Land bridging: secure the site, then sort the development finance.
Bridging on land with planning permission, for buying a site before the development facility is in place, holding it through a planning uplift, or refinancing out of an expiring facility.
When land bridging makes sense
- The vendor will not wait. Development finance takes six to ten weeks. A bridge completes in three, then the development lender refinances the land as part of the facility.
- Buying at auction. Sites with planning appear at auction regularly. Same logic as any auction purchase.
- Planning uplift. Buying with outline consent, bridging while you get reserved matters or a better scheme, then selling or developing at the enhanced value.
- Enabling works. Demolition, remediation or services before the main facility starts.
- Refinancing. A land loan is expiring, planning has taken longer than expected, and the lender wants out.
Typical terms
Land is the most conservative area of bridging. With full planning permission in place, expect 50% to 65% of the land value; some lenders will go to 70% for an experienced developer on a strong site. Without planning, 40% to 50% from a smaller pool of lenders, and the site needs to have some existing use value. Rates from around 0.85% to 1.25% per month, terms of 6 to 18 months, interest retained.
What lenders need
- The planning permission, with conditions, and the Section 106 or CIL position.
- A valuation on the basis of the consented scheme. This takes time; a red book valuation of a development site is a substantial piece of work.
- Your exit: a development facility with terms in hand, or a sale. The best-presented land bridges come with the development lender's indicative terms attached.
- Your track record on similar schemes.
- Access, services, ground conditions and contamination reports, if you have them.
Where it goes wrong
Planning conditions that cannot be discharged in the timescale, a valuation that comes in well below the price because the scheme is optimistic, and buyers who assume a bridge will stretch to build costs. It will not. Land bridging funds the land; the build is development finance.
About the numbers on this page. Rates, fees and loan-to-values are typical market ranges for unregulated bridging in England, given so you can size a deal. They are not an offer. Your terms depend on the property, the exit, the lender and you.
Questions we get asked
Will a bridge fund the build as well?
No. A land bridge funds the site. The build needs development finance, which is drawn in stages against a monitoring surveyor. Some development lenders will fund the land purchase at the same time; where they cannot move fast enough, the bridge fills the gap.
Can I bridge land without planning?
A few lenders will, at 40% to 50% of value, if the land has an existing use (agricultural, a yard, an existing building) and a credible route to consent. It is expensive and the pool is small.
Does agricultural land count?
With planning for residential or commercial use, yes. Bare agricultural land without consent is very hard to bridge.
Tell us the deal.
A few numbers and a postcode is enough for a first view. Indicative terms cost nothing and commit you to nothing.