Immediate in-principle decision & draw down of funds within 5-14 days

Loan terms of between 3 months and 24 months. Land bridging loan specialists.

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Bridging loan to buy land

Raise the funds you need to purchase land with or without planning permission with land bridging finance.

The opportunity to purchase land at a price where you have the opportunity of making a significant return on your investment is rare. The value of the land you buy will increase substantially if you secure planning permission on it or, where planning permission has already been granted, following the construction of desirable residential, mixed-use, or commercial property.

We are also able to arrange land bridging loans where you intend to purchase land to construct your own property. These types of land bridging loans are regulated. Redrock Commercial Finance is an FCA-regulated bridging loan provider.

If you already own land which has increased in value and you wish to raise funds secured on the equity in your land, please contact us.

At Redrock Commercial Finance, we work quickly and diligently to find you a land bridging loan on the most favourable terms possible and featuring the most competitive interest rate.

We can normally secure an in-principle decision within 3 hours with draw down of the funds within 5 to 14 days of your initial enquiry.

Bridging loan for land purchase – the process


Call us or use the contact form on our site to let us know how much you wish to borrow and the location of the land.


We’ll then contact the lenders on our panel most likely to view your proposal favourably. Target time for an in principle decision is 3hrs.

Valuations & legal

The lender instructs a surveyor to produce a report on your property. Your and the lender’s legal representatives then enter dialogue.


Upon production of a satisfactory surveyor’s report and the signed agreeement, the funds are released usually within 5-14 days.


Who uses land bridging loans?


Invest in land whose future value may increase with or without planning permission


Purchase the land on which you intend to build residential, mixed-use, or commercial property to sell on or let/lease out


Purchase land and then construct commercial premises from which you intend your business to trade or to rent out to other businesses


Purchase the land on which you intend to build a property for you and your family to live in (a regulated bridging loan is required for this type of purchase)


Raise money from the equity in undeveloped land you already own with a second charge land bridging loan

Bridging loan on land – borrowing criteria


Loan to value (LTV) with planning permission: 70% maximum
100% funding is available providing you have additional security with sufficient equity
Loan term: 3 to 24 months
Loan amount: £26,000+
Interest options: serviced, retained, rolled-up
Interest rates from: 0.95%
Loans available in UK & Europe
Decision: Immediate
Available on first and second charges

What are land bridging loans used for ?


where the value of the land is likely to increase greatly on the granting of planning permission and/or because of its location


for the construction of residential, mixed-use, or commercial property to sell on or let/lease out
to prevent another business or organisation purchasing land which may present a future competitive threat


consolidation of debt
ending bankruptcy proceedings
finance to purchase equipment and plans for business
funding to stop an imminent or expected repossession
payment to HMRC of outstanding tax liabilities
payment to personal or business creditors applying pressure or threatening proceedings
probate matters
re-financing of expiring credit facilities
start-up funding for a business
working capital loan to a business

Bridging loans explained

Land bridging loans are used by borrowers to purchase land on which there are currently no buildings present.

What is a bridge loan? A bridging loan is a form of secured short-term finance used to:

  • purchase land or property which you intend to use yourself, rent out to others, or sell on often which requires refurbishment or development after you take ownership or
  • raise funds secured against the equity in the land or property you own.

How does a bridge loan work? Unlike other forms of secured finance which may offer you up to 35 years to repay in full the money you’ve borrowed, bridging loans must be repaid within 24 months (except for regulated bridging loans which have a maximum term of 12 months).

Also unlike other forms of secured finance, you don’t make monthly repayments to your lender. You must settle in full the outstanding balance of a bridging loan on or before the expiry date of the loan.

When applying for a bridging loan, your lender will need to know what method you’ll use to make repayment – this is often referred to by lenders as your “exit strategy”.

Exit strategies

If you want to use a bridging loan to purchase land, the exit strategies most lenders would expect you to propose when you’re making your request for funding are:

  • selling the land after you have gained planning permission to build on it
  • the arrangement of property development finance you’ll use to construct buildings on the land following the granting of planning permission
  • the arranging of a self-build regulated bridging loan if you want to use the land to build your primary residential property on it

The lender will require the first charge over the land you purchase with a bridging loan.

If you want to use a bridging loan to raise funds quickly, the exit strategies a lender will most expect to see are:

  • the sale of the land whether or not planning permission is granted
  • the receipt of monies from a third-party source (for example, the clearing of one or more invoices which are greater than the value of the bridging loan before the expiry date of the loan)
  • monies received from a bequest in a will (or the sale of an asset which was a bequest in a will)
  • the sale of an asset, another property, or an investment

If you’re using a bridging loan to raise money on the equity in land you already own, your lender will take a second charge over the land if there is an outstanding mortgage on it. If you own the land outright and there are no mortgages or debts secured on it at all, your lender will require a first charge.

If your proposed exit strategy is not listed above, please call us on 020 3780 7610 or click here for our contact form to share your idea on how you’ll repay the land bridging loan. We’ll be able to let you know almost immediately whether we’ll be able to find a lender happy to work with you using that exit route.

Require a land bridging loan for property development?

Many property development loans allow you to both purchase the land and fund the construction project. If you intend building on the land very shortly after you’ve purchased it, development finance might be more suitable for you. Please call us on 020 3780 7610 or click here for our contact form for more information.

What is a regulated bridging loan for a house purchase?

Do you want to purchase land to build your own home on? This is possible however, because the property you intend to build on the land would be your primary residential property (the home which you and your family intend to live in), you may have to apply for a regulated bridging loan.

The cost of a bridging loan for purchasing land

Land bridge loan rates start from 0.95% although the rate you’ll pay will vary according to the value of the land you’re using for security, the amount of money you wish to borrow, and the exit strategy you propose to use.

For an indicative calculation of the cost of the monthly and overall you’ll be likely to pay, please click for our land bridging loan calculator.

Bridging loans for land purchases – get a quote

For a quote on the best bridging loan for your project, call us on 020 3780 7610 or click here for our contact form.