What is a Land Bridging Loan?
This is designed for those who wish to obtain short term finance in order to purchase or refinance land quickly. For example, it may be used for bridging whilst planning permission is obtained or to release short term funds. As soon as planning permission is granted, you would then refinance to development finance to allow you to commence with building works.
Latest Land Bridging Loan Offers
View some of the latest offers from leading lenders.
Product BF26Apply Now
|Interest Rate 1%||Lender Fee 2%||Max LTV 40%||Max Term 12 Months||Min-Max Loan £75,000 - £7,500,000||Security Type Land||Regulated? No|
Product BF28Apply Now
|Interest Rate 1.25%||Lender Fee 2%||Max LTV 50%||Max Term 12 Months||Min-Max Loan £25,000 - £500,000||Security Type Land||Regulated? Yes|
Product BF30Apply Now
|Interest Rate 1.35%||Lender Fee 2%||Max LTV 50%||Max Term 12 Months||Min-Max Loan £25,000 - £5,000,000||Security Type Land||Regulated? Yes|
We can assist you in obtaining a bridging loan against land at up to 65% Loan to Value (LTV) and it can be possible to lend up to 100% LTV with additional security.
Key benefits of taking such a loan are as follows:
- You can obtain a loan from £25,000 with no maximum loan size and you can borrow up to 24 months.
- Applies to both regulated and unregulated loans and available on agricultural, development plots, car parks and self-build. No planning permission is required.
- Interest rate charges are set at 0.95% and interest can be rolled onto the loan payment to be paid at the end of the term.
- Loans with no early repayment charges and any exit route will be considered.
- Adverse credit accepted
- Available throughout the U.K.
What about interest rate charges and any other fees?
This will depend. Things that will be taken into consideration is where the land is, what it is being used for and whether or not it has the correct planning permission for the intended use.
If the land is in a good location combined with having the relevant planning permission, then you can expect to pay an interest rate of about 0.9% per month However, if the land has no planning permission and the location is dubious then the interest charge rate could increase to 1.25%-1.5% per month. However, Finbud will do its best to secure as low a rate as possible.
Like with other types of loans, lenders will charge a lender arrangement fee of between 1.5%- 2% of the loan amount. This can sometimes be discounted to as low as 1% on larger loans.
The whole application process could take up to 2 weeks, although we would endeavour to complete the application as soon as possible if less work is required and legal work has already started.
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