Land Finance UK:
From Raw Plot to Planning Consent

Land finance is a short-term secured lending facility used to acquire or refinance a plot of land, with or without planning permission. Unlike development finance, which funds construction, land finance covers the acquisition phase before or during the planning process.

Yes. Some specialist lenders will advance against land without planning permission, though at lower LTVs than sites with consent, typically 50 to 60 percent of the current market value.

Once full planning consent is in place, lender appetite increases. We can arrange land finance of up to 90 percent of the land value for sites with planning permission.

Land finance covers the acquisition of a plot before or during the planning process. Development finance funds the construction phase once planning consent is in place and building work begins.

Yes. Land at auction requires certainty of funding and the ability to complete within fixed deadlines, typically 28 days. We arrange pre-approved land finance facilities for auction purchases.

Primary risks include cost accumulation and value uncertainty. Holding costs such as interest, rates, and security erode margin. If planning is refused, the land value may fall materially.

Yes. We arrange refinancing of land already in ownership to release capital for projects, manage cash flow, or restructure a portfolio without disposing of the asset.

Outline consent establishes the principle of development without detailed design approval. Full planning consent approves the specific scheme and allows commencement.

The land value typically reverts to its pre-consent level. Borrowers must appeal, sell at the unplanned value, or refinance if a new strategy justifies the position.

Land finance facilities should be structured to exit cleanly into development finance once planning is granted and construction is ready to commence.