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Post Planning Land Acquisitions

For developers, land is the raw material of the trade, however the window of opportunity to acquire a prime site is often narrow. Whether you are buying a plot with Full Planning Permission, Outline Planning, or Permitted Development Rights, the ability to move quickly is often the difference between securing the site and losing it to a competitor.

Silver Oak Capital provides specialised bridging solutions tailored to post planning land acquisitions. We bridge the gap between identifying a site and arranging your full development funding, allowing you to secure the asset immediately and discharge pre-commencement conditions at your own pace.

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What is Post Planning Land Finance?

This is a short-term bridging loan specifically secured against land that benefits from some form of planning consent. Unlike development finance, which releases funds in stages to pay for construction, this finance is a single lump sum used purely to complete the purchase of the site. A common question in this context is why not just use development finance? Development finance is slow given it requires detailed cost plans, contractor appointments, and warranties. Bridging loans provide the speed needed to acquire the land. It allows you to buy the land in 2-4 weeks, giving you ownership. You then have 6-12 months to finalise your build costs, discharge planning conditions, and arrange your main development finance facility without the pressure of a vendor chasing you for completion.

Who Needs It?

Developers in Competitive Bidding

If you are buying land at auction or via a sealed bid, you cannot wait 3 months for a development lender to approve your construction budget. You need a land bridge to pay the vendor and secure the title.

Enhancing Planning

Some developers buy a site with existing planning permission but intend to improve it (e.g., changing a consent for 4 houses into 6 apartments). They use land finance to buy the site, spend 3-6 months maximising the planning gain, and then either sell the site for a profit or refinance onto a development loan to build the improved scheme.

Key Considerations and Terms

Loan-to-Value (LTV)

Leverage is lower for land with planning. Typically, lenders will offer 50% LTV against the current market value of the site. This means you need a larger cash deposit compared to buying a house.

Planning Status

The quality of the planning affects the LTV. Full planning permission attracts the highest LTV. Outline planning consent or allocated land usually means a lower leverage offering.

No Income Required

The loan is not serviced from your personal income. Interest is usually rolled up or deducted from the gross loan advance, meaning no monthly payments are required during the term.

The Exit

Given the short term nature of the land bridge loan, the lender needs a clear exit strategy. This is usually refinancing (onto a development loan once you are ready to build) or a resale (selling the plot once planning is enhanced).

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How Silver Oak Capital Helps Clients

  • Stacking the Capital Stack

    Because land loans typically cap at 50% – 60% LTV, many developers struggle with the deposit. Silver Oak Capital can layer mezzanine finance or equity funding on top of the senior land bridge to increase your leverage, reducing the amount of personal capital you need to commit to the purchase.

  • The Transition

    We structure the exit to be seamless. We don’t just find you the land loan, we simultaneously start the conversation with development finance lenders. We ensure that the lender providing the land bridge will have no problems being taken out by the development lender we are targeting, preventing legal friction later in the process.

  • Valuation Expertise

    Land valuation is subjective. One valuer might see a £1m plot, another might see £800k. We work with lenders whose panel valuers understand “Residual Land Value” (the value based on the potential profit of the finished scheme), ensuring you get the maximum possible loan amount./li>

FAQs

Yes, but it is much harder and the LTV will be lower. Lenders view land without planning as speculative. If the planning is refused, the land value plummets. Silver Oak Capital has access to niche pre-planning bridge lenders who will consider unconsented land if the location is strong and the planning logic is sound.
Typically 12 to 18 months. This provides a safety buffer. It gives you time to buy the land, discharge pre-commencement planning conditions, and finalise your tender pack for contractors before refinancing onto a development loan.
For a pure land bridge, experience is less critical than for development finance because you aren’t building yet, you are just buying. That being said, they will still want to know your exit strategy. If your exit is “I will build it,” they need to know you are capable. If your exit is “I will sell it,” experience matters less.

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+44 207 459 4440