If you want to build on land but don’t have planning permission, securing a land bridge loan will be challenging if you are operating alone. Most lenders are very wary of lending against land in these scenarios because are so many unknowns and moving elements to the deal. You might find it difficult to get planning permission, there can be holdups, or authorities might not like your ideas, and you’ll need to go back to the drawing board.
In the context of bridging finance for land, lenders are always thinking about how you exit. They want to feel comfortable that you have a solid plan and will have the capital to repay the loan at term. Most lenders associate land purchases with no planning permission as high-risk deals, and mainstream lenders may not want to let you borrow. Expect less flexibility regarding how much you can borrow, and potentially you’ll also need to provide additional collateral to move ahead with the deal.
Mainstream lenders tend not to have any appetite for land bridging finance deals on land without planning permission, so you will need to look at niche and alternative lenders. Because of the complexity of these types of arrangements, lenders are free to pick and choose who they lend to. Your profile, net worth, track record and plans will significantly sway. How you present your situation and give your lender confidence in the feasibility of your projects and your ability to get planning permission will be essential to securing a loan on land.
With contacts in every part of the market, Enness has direct access to the lenders who will consider loans for land purchase - even with no planning permission. Rather than spending excessive time first trying to find lenders who will assess your situation before entering into negotiations yourself, Enness will be able to go straight to the sources of the best finance. You’ll receive offers quickly – often in just 24 hours – so you can move forward with your transaction with confidence.