Land Without Planning — Bridging Explained

Land without planning permission is one of the hardest asset classes to finance. Most mainstream bridging lenders won't touch it. Those that will are highly selective about what they'll fund and at what LTV. If you've been declined for land finance, you're not alone — but that doesn't mean the deal can't be done.

Why Lenders Are Cautious

From a lender's perspective, land without planning is uncertain collateral. If the borrower defaults, the lender has to sell the land — and land without consent is worth significantly less than land with it. In some cases, the gap between hope value and current use value is enormous.

The lender is also exposed to planning risk: the possibility that consent is refused entirely, or granted with conditions that make the scheme unviable. That risk is hard to quantify, and most lenders deal with uncertainty by simply not lending.

What Makes a Fundable Land Deal

The lenders who do finance land without planning — and there are more than you might think — are looking for specific indicators that reduce their risk:

• Allocation in the local plan. If the site is allocated for development in the adopted local plan, or identified in a strategic housing land availability assessment, lenders are materially more comfortable. It's not a guarantee of consent, but it's a strong signal.
• Pre-application feedback. Positive pre-application discussions with the local planning authority carry weight. If an officer has indicated support in principle, lenders view that favourably.
• Planning history. Previous applications on or near the site — even if refused — help lenders understand the planning position. A refusal on design grounds is very different from a refusal on principle.
• Credible exit. The lender needs to believe the exit will work. That typically means either: planning is granted and the site is sold or refinanced into development finance, or if planning fails, the land can be sold at current use value for enough to repay the loan.
• Conservative LTV. Expect maximum 50-60% of current market value on land without planning. Some lenders will stretch to 65% if the planning indicators are strong, but 70%+ LTV on uncons land is extremely rare.
• Borrower experience. A developer who has successfully navigated the planning process before — and can demonstrate a track record of securing consent — gets better terms than someone doing it for the first time.

How to Structure the Application

When we present a land deal to lenders, we prepare a structured pack that addresses every concern upfront:

• Site location and description with planning context
• The proposed scheme and how it aligns with local planning policy
• Pre-application correspondence or planning consultant's assessment
• Comparable evidence for both current use value and with-consent value
• Clear exit strategy with timescales
• Borrower CV demonstrating relevant experience

This presentation is the difference between a decline and a term sheet. Lenders who see a well-prepared, realistic proposal are far more likely to engage than those who receive a one-line enquiry asking for 70% of hope value.

If you're looking at a land opportunity and need finance to secure it, read more about how we approach land and planning finance — or get in touch to discuss your specific site.