PD Bridging

Permitted Development Bridging Finance

Short-term finance to acquire commercial, agricultural or storage stock with permitted development rights and fund the prior-approval phase before a full development facility takes over.

What it is

Bridging the gap between acquisition and PD conversion

Permitted development bridging is short-term, property-secured finance used to buy a building that has the benefit of permitted development rights (typically Class MA office-to-residential, Class Q agricultural-to-residential, Class G commercial-to-residential, or Class R agricultural-to-flexible commercial) and to fund the prior-approval and pre-build phase before a full development finance facility kicks in. It sits between a standard commercial bridge and a development loan.

Most permitted development opportunities require the buyer to move quickly. Vendors of vacant office buildings, redundant agricultural stock and lapsed retail units routinely demand 28-day completion. Mainstream lenders cannot underwrite a vacant commercial-to-residential conversion at that pace, so bridging steps in: complete on the acquisition, secure the prior-approval determination from the local planning authority, then refinance or roll into a development facility once the consent is in place.

The PD landscape has shifted materially in the last two years. The Class MA office-to-residential expansion has removed the prior 1,500m² floor area cap and the requirement for the building to have been vacant. Class R agricultural rights have widened to 1,000m². Lenders have caught up unevenly and the difference between a quick offer and a slow decline is whether the deal sits with a lender that understands the current PD regime versus one still pricing on the pre-2024 rules.

Get a Quote Call 0204 6211776

0.65% pm

Rates from

Up to 75% LTV

On acquisition

£200k-£15m

Loan size

14-28 days

Typical completion

Why Doulton

What makes this work in practice

Acquisition before prior approval

Lenders comfortable funding the purchase before the prior-approval determination is issued. Underwriting is run on the strength of the planning advice, the deliverability of the scheme and the GDV of the converted stock.

Class MA, Class Q, Class G and Class R

Active lender appetite across all the main PD classes: office-to-residential under Class MA, agricultural-to-residential under Class Q, retail-to-residential under Class G, and the broader Class R commercial conversions.

Prior-approval costs rolled in

Architect, planning consultant, surveyor and prior-approval application fees can be funded inside the bridge facility, reducing day-one cash drag during the 56-day determination period.

Pre-construction works funded

Strip-out, asbestos removal, soft demolition and other pre-build works on vacant commercial stock can be drawn down against valuation milestones before the development facility refinances.

Exit onto development finance arranged

Doulton arranges both the bridge and the follow-on development facility for most PD clients, so the exit is modelled at day one rather than being a separate sales process six months later.

Ltd Co and JV-friendly

Almost all PD bridges sit inside a Special Purpose Vehicle. We are equally comfortable structuring the security and PG package for sole-developer Ltd Co cases and for joint ventures with profit-share arrangements.

The process

How it works

Pre-acquisition review

Share the title, planning advice and outline scheme. We confirm which lenders have current appetite for the specific PD class and the indicative loan against acquisition and works.

Application and DIP

Heads of terms agreed within 48 hours. RICS valuation instructed on a current-use and conversion-GDV basis. Prior-approval timetable confirmed with the planning consultant.

Completion on the bridge

Funds drawn on acquisition. Prior-approval application submitted to the LPA. Pre-construction works begin where the facility allows day-one or staged drawdown.

Refinance onto development finance

Once prior approval is determined and the GDV is fixed, we arrange the exit onto a senior development facility, typically inside 6-9 months from drawdown.

Move fast on a PD opportunity

Indicative permitted development bridging terms in hours. Whole-of-market quotes from the lenders genuinely active in Class MA, Class Q and Class R conversions.

Get a Quote Call 0204 6211776

FAQs

Frequently asked questions

What is a bridging loan and when is it used?

A bridging loan is a short-term property-secured facility, usually 1-24 months, used to 'bridge' a funding gap - for example between buying a new property and selling an existing one, completing an auction purchase within 28 days, breaking a property chain, or funding works before refinancing onto a mortgage.

How much can I borrow on a bridging loan?

We arrange bridging from £25,000 up to £100m+. Typical LTVs are up to 75% on residential, 70% on commercial, and up to 80% on larger prime deals. Second-charge bridging is available up to around 65% LTV.

How fast can a bridging loan complete?

Straightforward cases can complete in 5-10 working days. Complex security, multiple parties, or additional diligence typically adds 1-2 weeks. Valuation and legal turnaround - not lender underwriting - usually drive the overall timeline.

What exit strategies do lenders accept?

The most common exits are (1) sale of the security property or another asset, (2) refinance onto a mortgage, and (3) receipt of expected funds (probate, business cash flow, drawdown of other finance). Lenders stress-test the exit alongside the loan.

What are typical bridging rates and fees?

Rates currently start from around 0.49% per month and rise based on risk, LTV and property type. Expect arrangement fees of 1-2%, valuation fees of £300-£1,500, and legal fees of £1,500-£3,000. Interest can be serviced monthly, retained upfront, or rolled up.

Related finance

Explore related pages

Other Doulton specialisms and lenders that commonly fit alongside this one. We always compare the full 130+ lender panel before recommending a deal.