Most lenders are comfortable letting you borrow if you haven’t bought land before, although the more experience you have, the more options will be available to you. If you are less experienced with this type of deal, most lenders will consider letting you borrow. However, you are unlikely to get as high a loan-to-value ratio as will be available someone who has bought and sold land and associated projects successfully in the past.
Land bridging finance is always negotiated on a case-by-case basis, and lenders will look closely at the bigger picture. Very few people buy land ‘just’ to buy land: the purchase is almost certainly part of a more extensive development or commercial project. Your projects, how complex these are, the risk associated with your project and how valuable the property or land will be at term will all play a part in how competitive your finance is.
If you have a solid financial position and an established track record of buying and developing land, and you have the necessary planning permission or licences, you may be able to borrow up to 70% of the cost of the land. If the transaction is more complex or your lenders believe it is risky or aggressive, you may not be able to borrow as much. Interest rates will vary in accordance.