When buying land with planning permission you can go up to 75% of the value and without planning permission, you can apply for finance of up to 50%. However if the land has outline planning permission, you can go up to 60% of the value of the land. Some lenders will even fund what is known as planning gain which is where you can borrow against the future value of the land after you have secured full planning permission.
You can also take out a commercial mortgage on it, refinance it or even release some of the value from it.
We can source funding for brownfield sites, farmland, agricultural land, greenbelt land, industrial sites and of course, residential & commercial land sites and the mortgage lenders we use are highly experienced in land acquisition finance. We also really like unusual security like arable land.
We can also help you even if you have bad credit because a number of our lenders do not credit score or credit search the borrower.
In terms of the types of mortgages available, you can use a bridging loan if it is a straight forward purchase, property development finance if you are looking to build or refurbish it or as stated, a simple land purchase with a commercial mortgage.
As one of the UK’s leading commercial finance brokers, A1 Commercial Finance can source and arrange the right type of loan at rates and terms to suit you. Find out more about us here.
Land Finance Interest Rates
Depending on whether you are applying for a commercial mortgage, bridging loan or development finance, the monthly or annual interest rate you pay will vary considerably.
For a commercial mortgage you can get a mortgage from just 4% pa but for a short term loan like bridging finance you can pay in excess of 15% pa. In addition, if you are buying land without planning permission, you may even more again because the lender is taking a real risk.
We deal with every single commercial finance, development and bridging loan lender in the UK. We source our deals from over 93 different lenders, many of whom are not available to developers or the general public and we package and process the application so that the lender of choice has everything they need to make a decision on whether to lend to you or not.
- The calibre of the individual or firm applying for the loan or finance
- The location. Land finance in England is more likely to be approved than say, land in rural Scotland due to supply and demand.
- The Report on Title is a major driver…Are there any restrictions? Can the title be split if need be?
- Does the land have planning permission? Not a problem if it doesn’t but important to know because you can borrow more against it if it does
- How large is the deposit?
- Can the client service the loan repayment each month?
The benefit of using A1 Commercial Finance for all your mortgage needs
We are true professionals.
We deal directly with some of the UK’s top developers and entrepreneurs. We count professional footballers and athletes amongst our clients as they trust us to help them build their property portfolios. We deal with all property enquiries within 1 hour and we guarantee that if the deal is a ‘go’, we will complete the initial loan due diligence within just a couple of days.
Cost effective Commercial Mortgages
We never charge upfront fees. We get paid by the mortgage lender we place you with so if the deal doesn’t complete for any reason, we won’t get paid a penny and you will not have lost a penny either. This applies whether it is a bridging loan or a development finance loan.
Although we are not members of the NACFB, we always source the most competitive interest rate and some lenders will even allow the loan repayments to be rolled up which means that you do not have to repay them each month – instead they are added to the loan and repaid when you either sell or refinance the land.
You can of course service the loan but in most cases, people prefer to roll up the interest. This will allow the borrower or developer to manage their cash flow better and leave them with more cash for other projects.
Doing deals is what we do
Whether it is the refinance of a football stadium, the purchase of land for a high net worth individual or a simple bridging finance deal for a property developer, A1 Commercial Finance will deliver on time every time. We process all of the information, package it in such a way that the lender will approve it and take care of all of the paperwork.
Obtaining a commercial mortgage can be complex but we will make it as simple and as hassle free as we can.