Land purchases in the UK often fall through due to a lack of funding options. Traditional mortgages rarely apply—especially when the land has no planning permission, no buildings, or no income. That’s where bridging finance can step in.

In 2025, bridging lenders remain active in land finance, but only when the exit strategy is clear and the structure is right. If you’re considering buying a plot, paddock, or development site, here’s what you need to know.

Why Traditional Mortgages Often Don’t Work for Land

Most mainstream lenders won’t offer standard mortgage products for land purchases unless there’s:

• A habitable property on the site
• Full residential planning permission in place
• Demonstrable income or utility value

Without these, the asset is viewed as too risky, especially for repayment over 25+ years. That’s why land buyers—particularly developers and investors—turn to short-term bridging finance.

When Bridging Finance Works for Land

Bridging loans can work well for land purchases in the following scenarios:

• Buying land with planning permission to build or develop
• Acquiring unencumbered land quickly before submitting planning
• Purchasing strategic land while awaiting uplift or future sale
• Funding access improvements, title splits, or early-stage infrastructure
• Using land as security for working capital or acquisition of adjacent plots

The key is that the land must offer a viable exit strategy—either resale, refinance after planning uplift, or development and resale.

What Lenders Look for in 2025

Lenders offering bridging loans on land typically want:

• Evidence of value—ideally supported by a formal RICS valuation
• Clear exit plan—sale, refinance, or development within 6–18 months
• Planning status—full or outline permission is ideal, but not always essential
• Access and title clarity—issues with rights of way or restrictions can derail deals
• Experience—especially if development or planning gain is the strategy

Loan-to-value (LTV) ratios are lower than on property—typically 50–60% of the land value.

Special Considerations

Not all land is created equal. You’ll need to consider:

• Green belt or agricultural status—this can limit development potential
• Covenants or restrictions—which may affect resale or build viability
• Access and services—if there’s no road or utilities, it may be harder to fund
• Planning uplift strategy—are you buying land in hope, or with an actual plan?
• Tax and structuring—purchasing land via an SPV may offer advantages

Your solicitor and broker must be aligned early to avoid delays. Bridging lenders move fast, but the quality of your supporting documents is everything.

Case Study: Strategic Purchase Pre-Planning

One of our clients recently acquired a 5-acre site just outside a commuter town. No planning was in place, but the land sat next to a recent development. The client:

• Put down a 40% deposit
• Presented an exit plan via sale after planning uplift
• Had their architect and planning consultant onboarded pre-purchase

We secured a 9-month bridging facility at 55% LTV—giving them time to apply for planning and capture the value uplift before resale.

How Willow Private Finance Helps

At Willow, we regularly advise on bridging loans for land, especially for:

• Developers securing strategic plots
• Investors speculating on planning uplift
• Buyers acquiring land pre-auction
• Landowners unlocking equity
• Clients combining land and existing property for funding leverage

We understand which lenders are active, what planning scenarios they accept, and how to build an application that gets approved fast.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.