Financing an Auction Property

Land bridging loans provide short-term funding for land purchases or refinancing. Discover your borrowing potential today.

4.9 Out of 5

Land with Planning

Land with planning is a short-term loan secured against a piece of land, typically one without buildings or structures. This land could have been used for agriculture, storage, garages, or horsemanship, or it could even be “scrub” land with development potential. Such loans are typically used by property investors, and property developers to purchase land and either apply for a change of use or amend the existing planning to enhance it or make it more favourable to then sell the land on or build it out.

In the same way that you’re able to get a bridging loan to buy property, it’s also possible to take out this type of short-term bridging loan to purchase land. Land bridging loans prove exceptionally valuable for developers seeking immediate funds to secure investments, such as the purchase of land at auctions. These bridge loans can effectively facilitate the acquisition of land, whether it’s intended for commercial or residential purposes. In many cases, we see developers using bridging finance to purchase land and then apply for planning permission to build residential or commercial properties.

This type of loan offers quick access to funds, often within a matter of days. However, in exchange for this speed, clients typically incur a higher interest rate compared to other, more conventional financing options. Most lenders will require a substantial upfront deposit, and in some cases, they may request additional collateral, such as a residential property, to secure the loan. As these loans are structured as interest-only, lenders will also seek evidence of your exit strategy. In simpler terms, they want to know your plan for repaying the loan, which usually involves either selling the land or obtaining longer-term financing once your project reaches completion.

Product Features Include:

How we can help?

FinSpace is a master broker with access to 130+ lenders based in central London. Our team of 30+ experts will talk you through the process and package your application from start to finish. We can browse the market and provide you with competitive rates and the market’s best deals.

Speak to a consultant

By submitting the form you agree to our Privacy Policy.

Get a Quote now!

Speak to a specialist

Is your project coming to an end?

Talk to an expert

Fill in the form to get a call back from a qualified advisor.