Land finance

Land with planning

Funding a consented site before a spade goes in the ground, and holding it until the build facility starts.

What it is

Consented land is an asset. Unconsented land is a bet.

Brief: explain how sharply lenders distinguish land with implementable consent from land without it, and what that does to LTV and rate.

[DRAFT] Explain the funding difference between land with detailed consent, land with outline consent and land with hope value only.

[DRAFT] Cover the conditions attached to a consent, discharge of pre-commencement conditions, and why lenders check whether the permission is implementable.

[DRAFT] Explain the two routes: a land bridge that later refinances into development finance, or a single facility covering land and build.

Use cases

When land funding is needed.

Brief: tie each to a real transaction shape.

  • Option or conditional contract completing

    [DRAFT] Where consent has been granted and the contract must complete within a set window.

  • Buying before the build team is ready

    [DRAFT] Securing the site while the contractor, warranty and build costs are finalised.

  • Discharging pre-commencement conditions

    [DRAFT] Holding the site while conditions are cleared and the build facility is arranged.

  • Outline consent only

    [DRAFT] Lower leverage funding while reserved matters are pursued.

  • Serviced plots

    [DRAFT] Infrastructure-first sites sold on to self-builders.

  • Strategic land

    [DRAFT] Where the exit is a sale to a housebuilder rather than a build-out.

Indicative terms

What lenders will advance.

Brief: check the LTV split between detailed and outline consent against live cases.

MeasureTypical range
LTV — detailed planning[DRAFT] Up to 65%
LTV — outline planning[DRAFT] Up to 50%
LTV — no planning[DRAFT] Up to 40%, limited appetite
Monthly interest rate[DRAFT] 0.75% – 1.25%
Term length[DRAFT] 6 – 24 months
Exit[DRAFT] Development facility, sale or refinance

Lenders price the certainty of the consent, not the size of the site.

Go deeper

The stage before development finance.

[DRAFT] Short paragraph explaining how a land facility rolls into a development facility, with links to the development page and the GDV calculator.

Questions

The things people ask first.

Site agreed and consent granted?

[DRAFT] One line asking for the planning reference, the price and the intended build start date.

Same working day response.