Securing planning permission remains one of the most effective ways to unlock value in UK property—but turning paper gains into real capital in 2025 requires a funding strategy that matches your end goal. Whether you’re flipping land post-permission, building out a scheme, or using planning uplift as leverage for refinance, the right finance structure is critical.

In this guide, we explore how developers, investors, and landowners are funding planning gain opportunities in 2025, what lenders want to see, and how Willow helps structure smarter deals.

Why Planning Gain Matters in 2025

Planning gain strategies—where value is added through a successful planning permission—are attractive because:

• They don’t require heavy upfront capital expenditure
• They can dramatically uplift land or site value
• They offer flexible exits: sale, refinance, or development

But lenders are cautious. Many planning-led deals fall through because they don’t meet basic finance criteria—especially in today’s tighter credit environment.

Typical Planning Gain Scenarios We See

1. Strategic Land Acquisition – Buying greenfield or brownfield sites at agricultural or industrial value with the intention of planning uplift
2. Option or Promotion Agreements – Funding to secure or act on land options and promotions
3. Planning-led Bridging Finance – Purchasing assets where the planning permission is pending but likely
4. Exit Bridging/Development – Refinancing post-permission to release capital or fund build-out

What Type of Finance is Available?

🔹 Bridging Loans

Useful for acquiring the site pre-permission. Some lenders will offer lower gearing if planning is speculative; others will stretch if it’s in advanced stages.

🔹 Development Finance

Once planning is secured, development funding becomes viable—often at stronger leverage and better rates.

🔹 Mezzanine/Equity Partners

For high-potential schemes, additional leverage can be sourced via mezz or equity-based structures—particularly if you have planning security but limited liquidity.

🔹 Private Bank Lending

If you're a HNW investor with existing assets or AUM, some private banks may offer flexible credit lines secured against the uplifted value.

What Lenders Need to See

• Planning documentation and approval timeline
• Comparable sales and end GDV evidence
• Exit strategy: sale, build, refinance
• Contingency plan if permission is refused or delayed

Even speculative applications can be funded—but only with a well-structured case backed by expert presentation.

Mistakes to Avoid

• Overvaluing land pre-permission
• Assuming lenders will fund 100% of purchase based on future value
• Weak or unclear planning strategy
• Poor site access, title, or infrastructure issues that spook lenders
• Not having a clear Plan B

A Strategic Example

A Willow client secured a £2.6M bridging loan to acquire a site with pending residential planning in a London commuter belt. By carefully structuring the loan with a staged drawdown and deferred interest, we enabled them to secure planning, exit via sale within 9 months, and generate a 28% ROI—without using additional capital.

Related Reading

• Development Finance in 2025: What Lenders Want Now
• Unlocking Capital with Bridging Loans
• LTV, LTC, and GDV: The Three Numbers That Shape Your Property Deal
• SPVs vs. Trading Companies: What Landlords Must Know

Final Thought

Planning gain is one of the sharpest tools in a developer’s arsenal—but the financial side needs just as much planning. With the right lender, structure, and application, your project can go from paper value to real capital in 2025.



📞 Need Funding for a Planning-Led Project?

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

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