development purposes, this land will need to already have planning permission. Having planning permission in place makes lending against the land far less of a risk for the lender, which is understandably a big source of concern. However, this can cause problems for would-be and experienced developers alike. Securing a mortgage on land without planning permission can be preferable, because the land will be cheaper than that which has permission already in place. Time pressures can also influence your requirements. The process of securing planning permission can take a long time, so for the sake of speed, you may wish to apply for a mortgage on land without planning permission. If the opportunity has enormous potential and is very likely that planning permission will be granted, you may feel comfortable taking the risk and moving on with the purchase. However, finding a lender who is prepared to do the same can be a real challenge. Fortunately, there is a solution. Our product of the week is a bridging finance product from a flexible lender, which can be used to purchase land without planning permission at up to 70% loan to value (LTV). This is an extremely unusual proposition and could be very helpful to many Enness clients. The product can be used to purchase plots valued at up to £5million, although if you are interested in purchasing a more expensive plot, there is a good chance we can assist with this. Available up to a term of 18 months, we would expect to secure a rate of between 1-1.25% per month. Once you have secured planning permission, we can then help you to refinance onto a cheaper development facility if you would like.
- Bridging finance mortgage on land without planning permission
- 1-1.25% per month
- Up to 70% LTV