Lendus.

Commercial Mortgages for Land

Financing commercial land requires lenders who can assess planning potential, development risk, and the strategic value of a site. We source land finance for buyers, developers, and investors at every stage of the planning journey.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates

5.0% – 9.0%

per annum

Term

2-15 years

Max LTV

Up to 60%

Amount

£100k – £25m

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Mortgage types available

Owner-Occupied

Rate
5.0% - 7.5%
Term
5-15 years
Max LTV
Up to 60%

Best for: Businesses acquiring land adjacent to existing premises for expansion — where the land has a clear commercial purpose tied to an operational business

Investment

Rate
5.5% - 9.0%
Term
2-15 years
Max LTV
Up to 55%

Best for: Investors holding strategic land with planning potential — lenders assess existing use value, planning position, and realistic development timeline

Refinance

Rate
5.0% - 8.5%
Term
2-15 years
Max LTV
Up to 55%

Best for: Landowners refinancing an existing land holding, restructuring short-term bridging finance, or releasing equity following planning gain

Key considerations

Eligibility requirements

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Market context

Commercial land values in the UK vary enormously by location, planning status, and development potential. Industrial land with planning in key logistics corridors has seen values exceed £3 million per acre in some South East and Midlands locations. Residential development land (where planning is secured) can be substantially higher. The planning system in England remains a significant constraint on land supply, with average times from application to decision for major commercial schemes often exceeding 18 months. The government has signalled reform intentions under the NPPF to increase planning delivery speed, but structural constraints remain. Land without planning permission is typically valued at its existing use value (EUV) plus a prudent premium for planning potential, which varies significantly by location and market conditions.

Frequently asked questions

Can I get a standard commercial mortgage on land without planning permission?
It is possible but significantly more difficult and expensive than lending on consented land. Most mainstream lenders require planning permission to be in place before they will advance funds. Without planning, lenders rely on the existing use value of the land, which for agricultural or unimproved land can be very low relative to the purchase price. Specialist land and bridging lenders may advance against strategic land value, but at lower LTVs and higher rates.
What is the difference between full planning permission and outline planning when it comes to land finance?
Full planning permission gives detailed approval for a specific scheme and triggers the highest land values and broadest lender appetite. Outline planning establishes the principle of development subject to reserved matters (design, access, landscaping etc.) — it is valuable but carries some residual planning risk. Lenders typically offer better LTVs and rates against full planning than outline, as the risk of permission being withdrawn or conditions being onerous is lower.
Can I remortgage land that has increased in value following planning permission?
Yes — planning gain remortgages are a common way for landowners to release equity from land that has risen significantly in value following the grant of permission. A new RICS valuation reflecting the consented value is required, and the lender will advance against the updated value at their applicable LTV ratio. The proceeds can be used to fund development costs, working capital, or other investment.
What environmental checks are needed for a commercial land mortgage?
A Phase 1 Desktop Environmental Study is almost always required. If the site has a history of industrial use, waste disposal, or contamination, a Phase 2 Intrusive Investigation will be needed. Flooding risk (both fluvial and surface water), radon levels (particularly in the South West and some other areas), and proximity to protected ecological habitats are also relevant considerations. Environmental liabilities can substantially affect land value.
Are there mortgage products specifically for agricultural land?
Agricultural land is typically financed through specialist agricultural lenders rather than mainstream commercial mortgage providers. Products include agricultural mortgages from specialist banks and building societies, often at competitive rates given the long-term security of farmland. However, agricultural land with development potential is often assessed under commercial land criteria — particularly where planning applications are being pursued. The two markets are distinct, and specialist advice is important.

Related property types

Industrial Unit Warehouse Office

Guides and resources

What Is a Commercial Mortgage? Commercial Mortgage Rates Commercial Mortgage vs Bridging Best Commercial Mortgage Lenders

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