Lendus.

Land with Planning Permission Finance

Acquisition and holding finance for consented development land — bridging the gap between purchasing a site with planning permission and drawing down a full development facility.

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

Rates

8.0% – 13.0%

per annum

LTGDV

Up to 60%

LTC

Up to 75%

Timeline

Varies — land holding 3-18 months before development drawdown

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Finance structure

Land Acquisition Bridge

Rate
8.0% - 12.0%
LTC
Up to 70%

Best for: Developers purchasing consented land ahead of securing a full development facility; typically 6–18 month term

Land and Development Wrap

Rate
7.5% - 11.0%
LTC
Up to 75%

Best for: Single-lender solution covering land acquisition and subsequent build-out, avoiding the cost of two separate legal transactions

Stretched Land Loan

Rate
10% - 13%
LTC
Up to 75%

Best for: Developers needing maximum land leverage where the site value is below the development finance threshold or pre-planning works are needed

Key considerations

Exit strategies

Drawdown of a full development finance facility once pre-commencement conditions are discharged
Onward sale of the consented land at a profit to another developer

Eligibility

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Market context

Land with planning permission is one of the scarcest commodities in the UK property market, and finance to acquire consented sites quickly is in consistent demand. An estimated 1.4 million homes' worth of consented but unbuilt plots existed in England as of 2025, reflecting the long gap between planning consent and construction start. Planning reform proposals under the NPPF 2024 revision are expected to increase the consented pipeline further, improving lender confidence in land values. Senior lenders have grown more selective on land loans since 2023, favouring urban brownfield sites over greenfield, and requiring independent land valuations with strong comparable evidence.

Frequently asked questions

What is the difference between outline and full planning permission for lending purposes?
Full planning permission covers all matters — including design, materials, access and layout — and is the strongest basis for a land loan. Outline planning permission grants consent for the principle of development but leaves reserved matters (typically design and access) to be approved separately. Most lenders will advance against outline consent but at lower LTC ratios and higher rates, and full planning is typically required before drawdown of a development facility.
Can I borrow to buy land without planning permission?
Speculative land loans without planning permission are available from a small number of specialist lenders, but at higher rates and lower LTC ratios (typically 50–60%) reflecting the significant planning risk. Pre-planning loans are usually short-term (6–12 months) and require a credible planning strategy, an experienced planning consultant and a viable alternative exit if planning is refused. They are not suitable as a primary funding strategy.
What is a planning condition and why do lenders care about it?
Planning conditions are requirements attached to a planning permission that must be satisfied before (pre-commencement conditions) or during development. Pre-commencement conditions — such as archaeological surveys, ecology reports or highway design approvals — must be formally discharged by the local authority before works begin and before a development lender will draw funds. Identifying and pricing these conditions is essential before exchanging contracts on a consented site.
How quickly can a land loan complete?
Land acquisitions are often time-sensitive — vendors frequently require exchange within 28 days and completion shortly after. Specialist bridging lenders can complete land loans within 5–15 working days from a fully packaged application. Legal due diligence on the planning permission, title and searches is the main timing constraint. Having a specialist broker and solicitor familiar with development land transactions is essential for meeting tight timescales.
What is overage and how does it affect my land loan?
Overage (also called claw-back or uplift) is a contractual mechanism under which the land vendor receives additional payment if the land is developed and the proceeds exceed a threshold — for example, 25–30% of profits above a base value. Overage runs with the land title and is a cost the lender must account for in the appraisal. Lenders will review the overage clause carefully and may reduce the loan accordingly. Where overage is onerous, it can reduce the attractiveness of the site to both buyers and lenders.

Related project types

Ground-Up Development New Build Residential Mixed-Use Development

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