KIS Bridging Loans
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Land bridging loans lending criteria

  • Up to 80% LTV (100% or more when additional security is available)
  • Interest Rates from 0.6% per month
  • Terms from 1 to 18 months (very limited option of 36 months is available)
  • Loans from £50,000 – no maximum
  • Land with or without planning permission
  • Rolled up and retained interest options – therefore no monthly repayments required
  • Interest only (serviced loans) also available
  • First, second and third charges available
  • Applicants with adverse credit and arrears possible
  • England, Scotland, Wales and Northern Ireland
  • Individuals, Limited companies, Partnerships, LLPs and Offshore companies
  • No broker fees
  • No early repayment charges on most plans
  • No exit fees

What is a land bridging loan?

A land bridging loan is a short-term finance facility that can be secured on a piece of land.

Bridging loans offer speed and flexibility, this allows borrowers to access large funds quickly in order to seize opportunities or solve problems when fast finance is required.

Land bridging loans are typically used by developers who want to develop and build on a plot of land before selling on for a profit. The loan will then be cleared on completion of the sale, or alternatively many are refinanced to a longer-term development finance facility that can also be used to provide additional funds for the build.

What can a land bridging loan be used for?

A land bridging loan can be used for a variety of different purposes, the most common uses include:

  • To purchase land for residential or commercial use
  • To purchase and develop land
  • To purchase land at auction
  • To purchase land and fund a self-build project
  • To purchase land without planning and then even provide the finance to pay for costs of obtaining planning. Additional security will most likely be required for this.
  • To develop or build on land that you own already
  • To obtain planning permission on land already owned
  • To release capital required for use elsewhere
  • To refinance an existing loan facility.

How does a land bridging loan work?

Land bridging loans allow you to raise capital by using a piece of land as security instead of a property.

This could be land that you own already or land that you’re planning to purchase.

You can typically borrow up to 75% to 80% of the value of the land, however you could raise 100% or more of the value if you can provide additional security. This could be another piece of land or a property. Doing this may also bring the loan to value down, which has the added bonus of potentially attracting lower interest rates.

A bridging loan is a short-term facility with terms typically of up to 12 to 18 months. There are limited options of up to 36 months, so it shouldn’t be used as a long-term financing option.

The bridge will be secured against the land until your exit strategy comes to fruition. This could be the sale of the land, after completion of the development or once planning permission has been obtained, or it could be refinancing with a longer term facility.

What types of land can be used as security for a bridging loan?

The following types of land are suitable security for a land bridging loan:

  • Residential land – land with planning permission for residential houses, bungalows or flats
  • Commercial land – land with planning permission for one or more commercial units, shops, leisure facility, care home, etc.
  • Agricultural land
  • Development sites
  • Self-build plots
  • Land without planning permission

Bridging loans for land without planning permission

It is possible to secure a bridging loan on a plot of land without planning permission.

However, the land will need to be in a good location or desirable in another way as the lender will need a realistic possibility of being able to sell the land in the event of default.

What information to you need to get a land bridging loan?

When you apply for a land bridging loan, you will need to provide the following information.

Having this ready in advance of your application can speed up the process if you are looking to complete quickly.

  • The full address of the land being used as security
  • The title number(s)
  • A detailed description of the land and its current use
  • Details of any existing planning permission or planning applications
  • Details of any existing valuation reports
  • The borrower’s details, including information of relevant experience
  • Planned exit strategy for the bridging loan

How much does a land bridging loan cost?

The cost of taking out a land bridging loan will depend on a number of factors. These include:

  • The location and value of the land
  • What the land will be used for
  • Whether the land has planning permission
  • Whether a valuation needs to be done (you may not need to pay for a new valuation if one that is acceptable to the lender has been done recently)


If the land has planning permission, is desirable, and is in a good location, you could expect to pay an interest rate of around 0.95% per month.

If the land does not have planning permission and it’s not in a desirable location, an interest rate of around 1.25% - 1.5% per month is more likely.

Arrangement fees

Lenders will charge a fee for setting up and arranging the loan. This is usually around 1.5% to 2% of the loan amount, but this can be reduced to as low as 1% for larger applications.

Valuation fees

Unless a valuation has been done recently, a valuation of the land will need to be completed. This fee will need to be paid upfront.

Legal fees

You will be responsible for covering both yours and the lender’s legal costs. These fees can vary as it depends on the lender and how complex the application is. Legal costs will also need to be paid upfront.

Broker fees

Most brokers charge a fee for using their services - we do not charge broker fees

Early repayment charges and exit fees

You will not be charged ERCs or exit fees with any of our plans.

What are the benefits of land bridging finance?

There are several benefits to using a land bridging loan. These include:

  • Speed - Bridging finance can be arranged quickly so it’s an ideal solution if you want to purchase land at auction or you need to refinance another facility before it reaches the end of term.
  • Flexibility - Bridging loans are well known for their flexible lending criteria. Lenders all have slightly different requirements but, in general, they are not concerned about your income or credit history as you do not need to make monthly repayments.

    With lending against land, planning permission would normally be required for development finance or mortgage products, but this is not essential with bridging finance. If the land offers sufficient security and you have a watertight exit strategy, you will be eligible for a bridging loan.
  •  Not property backed - Land bridging finance offers a secured finance solution that doesn’t require your home or another property as security. This is ideal if you don’t want to put your home at risk.
  • Additional security accepted - With bridging, you can use more than one plot of land or property as security. This can give you the option to raise 100% of the land value, or you can use it to bring the loan to value down and attract better rates and terms.

What are the drawbacks of land bridging finance?

As with all secured financial products, your land or property will be at risk if you fail to pay back the bridging loan on time.

Bridging loans are intended for short-term use and shouldn’t be relied upon as a long-term solution. The interest rates reflect this.


Here are some of the most frequently asked questions that we get regarding bridging loans secured on land.

How long does it take to get a land bridging loan?

Typically 14 days if it’s for a land purchase, 7 days if it’s for releasing equity from land you already own and in some circumstances just 72 hours.

How do you pay off a land bridging loan?

Your exit strategy is one of the most important eligibility factors when it comes to bridging finance.

Common exit strategies for land bridging loans include:

  • Sale of the land after planning permission is granted or development work is complete
  • Refinancing the land with an alternative finance facility – e.g. development finance or a self-build mortgage
  • Sale or refinance of the newly built/developed properties on the land
  • Sale or refinance of a separate property or piece of land

Will I be eligible for a land bridging loan?

Your eligibility for a bridging loan is mainly dependent on the type of land and value, the LTV, and your planned exit strategy. Provided that these things are suitable, you should qualify for a land bridging loan.

You do not have to make monthly repayments on a bridging loan so your income is not assessed.

Is a land bridging loan difficult to obtain?

In general, securing a bridging loan on land isn’t much more difficult than a traditional property backed bridging loan and every case is assessed on its own merits. Using land with planning permission will be easier than land without, but lending still very much possible.

Can you get a loan on land without planning permission?

Yes, you can take out a bridging loan of a piece of land without planning permission, however the loan to value and interest rate offered may be different to a plot of land with planning.

Without planning permission, the land is more of a risk as it could be seen as less desirable. Therefore, the land needs to be desirable in another way as the lender would need to be able to sell it in the event of loan defaults.

Who can get a land bridging loan?

Anyone can take out a land bridging loan as long as the land is suitable security and a secure exit strategy is in place.

We can lend to:

  • Individuals
  • Developers
  • Limited Companies
  • Partnerships
  • LLPs
  • Offshore Companies
  • Pension Funds

Can I borrow 100% of the land cost?

You may be able to borrow 100%, or even more, of the land cost if you have additional security available. This could be another plot or plots of land or a property.


You want to purchase a plot of land for £200,000 but you do not have any money to put in. However, you own another property outright worth £400,000.

You can this other property in addition to the plot of land, bringing the total value of assets being used as security to £600,000.

Borrowing £200,000 against assets worth £600,000 would give you a loan to value of 33% for the net loan.

Why use a bridging loan broker?

Land bridging finance is a very specialist area of the market, so using an experienced broker will save you a huge amount of time and effort. Also, some lenders only deal with brokers which means you will have access to lenders that you wouldn’t be able to approach directly.

An independent broker will be able to search the whole market, ensuring you get the absolute best option to meet your needs and circumstances. A broker will also be there to help you through the application process.

Is a land bridging loan mort expensive than a property bridging loan?

Generally speaking, land bridging loans are more expensive than traditional property-backed bridging loans due to land being less in demand compared to bricks and mortar.

Using an independent broker is the best way of making sure that you’re getting the best land bridging loan deal.