Land purchases in the UK have always been challenging to finance. Unlike residential property, land without planning permission, habitable structures, or income is rarely attractive to mainstream lenders. In 2025, this remains true: most banks and building societies simply will not lend where the site offers no immediate utility or cash flow.

That’s where bridging finance comes in. Specialist lenders are prepared to support acquisitions that fall outside the criteria of traditional mortgages, provided the structure is right and the borrower has a clear plan for repayment. For buyers of plots, paddocks, and development sites, bridging can be the difference between securing land and missing out.

Why Traditional Mortgages Don’t Apply

Mainstream lenders require certainty. Their business model is built around long-term repayments over 20 to 30 years, supported by income and secured against a property that is both habitable and marketable. Bare land does not fit this profile.

Unless a site has an existing dwelling or full residential planning permission in place, banks tend to view it as speculative. Even agricultural land with rental income is often excluded from their products. The risks are simply seen as too high for conventional underwriting.

For buyers who want to act quickly—whether to secure land for future development, capture value uplift from planning, or acquire adjoining plots—this creates a funding gap. Bridging finance fills that gap by focusing on the value of the land today, the potential tomorrow, and the strength of the borrower’s exit strategy.

A similar principle applies in complex property deals. As we explored in How to Finance a Mixed-Use Property in 2025, assets that don’t fit neatly into standard residential criteria often require specialist finance. Land is no different.

When Bridging Works for Land Purchases

Bridging loans can provide a flexible solution for land acquisitions, but they are not a blanket answer. They tend to work best in scenarios where value can be demonstrated and a credible repayment path exists.

For example, a buyer might use bridging to secure land with planning permission already granted, giving them time to arrange development finance. Others use it to purchase land without consent but in strong locations, allowing them to submit planning applications before resale. Bridging is also used for strategic acquisitions, such as parcels expected to benefit from nearby infrastructure projects, or for funding early-stage works like road access or utility connections that make land more marketable.

In all these situations, the unifying requirement is an exit strategy. Lenders want to see whether the land will be resold, refinanced once planning is achieved, or taken forward into development within the short-term window of the loan.

This mirrors what we highlighted in Why Every Bridging Loan Needs a Clear Exit Strategy. The lesson applies even more strongly to land: without a realistic exit, there is no deal.

What Lenders Look for in 2025

Every lender has its own preferences, but several themes dominate in today’s market.

• Evidence of value: Most lenders will require a formal RICS valuation, rather than relying solely on desktop assessments. Land values can be highly variable, so independent confirmation is essential.

• Clarity of exit: Whether through sale, refinance, or development, the repayment plan must be achievable within six to eighteen months.

• Planning status: Full or outline permission makes funding more straightforward, but some lenders will support acquisitions without consent if the strategy for obtaining planning is credible.

• Title and access: Restrictions, covenants, or unclear rights of way can derail a transaction. Lenders want certainty on ownership and usability.

• Borrower experience: Developers with a track record of planning gain or land sales will find funding easier. First-time buyers are not excluded, but they must demonstrate strong professional support.

Loan-to-value (LTV) levels are typically lower than for residential bridging, usually capped at 50–60% of the land’s value. Buyers must therefore be prepared to contribute larger deposits.

Special Considerations for Land Buyers

Not all land is equal in the eyes of lenders. Several factors determine whether a bridging facility is viable.

Green belt or agricultural designations can severely restrict development potential. Even if surrounding land has been built on, planning authorities may impose limits that reduce future value. Environmental designations carry similar challenges.

Covenants or restrictions on use can prevent residential development entirely. Some sites are sold with conditions designed to preserve their character or use, which lenders will scrutinise carefully.

Practical considerations such as road access and utilities also matter. A plot without connections to water, electricity, or public highways is far less attractive to funders.

Finally, structuring the purchase can be important. Many buyers use special purpose vehicles (SPVs) when acquiring land, especially where future development or resale is planned. This can create tax and liability advantages, as explored in our blog SPVs vs. Trading Companies: What Landlords Must Know in 2025.

Example Scenario: Strategic Purchase Pre-Planning

To see how bridging can apply in practice, consider an illustrative scenario.

A buyer identifies a five-acre site just outside a commuter town. No planning permission is in place, but the land sits next to a recently completed residential development, suggesting future potential. The buyer contributes a 40% deposit and engages both an architect and a planning consultant before purchase. Their exit plan is to apply for planning consent and resell the site once uplift in value is achieved.

In this example, a nine-month bridging loan at around 55% LTV provides the breathing room to apply for planning, negotiate with the local authority, and position the land for resale. The risk is clear—planning permission may not be granted—but the structure gives the buyer a realistic chance to capture value while limiting exposure to long-term debt.

This type of strategy illustrates how bridging finance can be used responsibly, provided the exit is realistic and professional advice is sought at every stage.

How Willow Private Finance Helps

At Willow Private Finance, we arrange bridging loans for a wide range of land transactions, from small plots to strategic sites. Our role goes beyond finding a lender—we help clients structure their applications so that they stand up to scrutiny and move through approval quickly.

We start by clarifying your objectives and your exit strategy. Whether your plan is resale, refinance, or development, it must be credible to secure funding. We then identify the lenders most active in your type of transaction. Some are comfortable funding land without planning; others prefer the certainty of consent in place. Matching your case to the right lender avoids wasted time.

We also help coordinate valuations and legal work. Land deals can stall over title issues, covenants, or access disputes. By working with solicitors and valuers experienced in land transactions, we reduce the risk of delays and keep the process moving.

Our experience covers developers seeking strategic plots, investors speculating on planning uplift, landowners unlocking equity, and buyers combining land with existing property for leverage. Whatever your position, our goal is the same: to make land finance structured, transparent, and achievable.

Final Thoughts

Buying land in the UK is rarely straightforward, and traditional mortgages are not designed for it. Bridging finance fills the gap by offering short-term funding that focuses on value today and potential tomorrow, provided the exit is clear.

For developers, it enables strategic acquisitions ahead of planning. For investors, it allows value to be captured in areas of growth. And for buyers operating under auction deadlines or competitive pressures, it may be the only realistic way to complete.

As with all bridging, success comes down to preparation. A strong exit plan, a realistic view of costs, and the right professional team make the difference between opportunity and risk. In 2025’s market, where land remains both scarce and valuable, bridging finance provides a tool to act quickly without overcommitting long term.

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