Land bridging loans operate differently from standard property bridging. Lenders perceive land as a more volatile security - its value depends heavily on planning status, location, and development potential. LTV limits are lower and lenders fewer, but the finance is readily available for the right sites.
Planning Status Changes Everything
| Land Type | Max LTV | Rate (pm) | Notes |
|---|---|---|---|
| Land with full planning permission | 65–70% | 0.75–1.0% | Best terms; clear development value |
| Land with outline planning | 60–65% | 0.85–1.1% | Subject to conditions |
| Greenbelt / agricultural (no planning) | 50–55% | 1.0–1.3% | Exit via sale or planning gain |
| Brownfield without planning | 55–60% | 0.9–1.15% | Remediation costs considered |
| Agricultural land | 50% | 1.1–1.4% | Specialist lenders; strong exit needed |
Land Without Planning Permission
Lenders will still consider land without planning, but at conservative LTVs - typically 50–60% of current use value (not hoped-for development value). The exit strategy is critical: acceptable exits include selling with planning permission achieved during the loan term, selling to a developer, or converting to development finance once planning is secured.
Land With Planning Permission
Full planning permission unlocks better LTVs (up to 70%) and lower rates because the lender can see a defined development value. Many borrowers use a land bridge to acquire a site quickly, secure planning, and then refinance onto development finance to fund the build.
Agricultural Land
Agricultural land has a limited pool of bridging lenders, primarily because its value can be opaque and restricted use makes it harder to sell quickly. Expect LTVs of 50% and above-average rates. Strong agricultural covenants can complicate the exit if the buyer pool is restricted.
Typical Uses
- Acquiring a site quickly to prevent a competitor purchasing it
- Buying at auction where standard development finance won't complete in time
- Bridging while planning permission is being applied for
- Portfolio rebalancing - releasing equity from one site to acquire another