One of the most challenging types of bridging loans to source are those required on land. We can source bridging finance for land with or without planning. The latter is more challenging as there are fewer lenders to choose from as most do not take so called ’planning risk’. Nevertheless, there is always a value to any piece of land and there are many factors that influence a lenders’ appetite for land without planning. The site was located in Glasgow and was valued at £2 million without planning (confirmed by a Knight Frank valuation report)
This particular query originated from an offshore trust company that wanted to take full advantage of their assets. They needed the funds to help pay for the entire planning application, including professional fees, for a scheme of 220 residential units with ground floor commercial space.
Problems to Solve
Besides the challenging prospect of finding a suitable lender for a land site without planning there were other obstacles such as the borrowers not willing to provide a personal guarantee for the loan. They made the task tougher. Fortunately the borrowers were able to demonstrate a strong track record of and a team with years of experience which made all the difference.
Thank to our strong network of bridging lenders in the UK we provided the following solution:
£1.2 million loan
60% Loan to Value
0.9% per month
18 Month Terms
Interest Rolled Up