Can I lend money for development too?

At Mortgage Lane, we are experts in providing land bridging loans for development projects. If your project is fully approved with planning permission, we can offer a development loan up to 75% Loan to Gross Development Value (LTGDV) which can be arranged after the bridging completes if you’ve been waiting on the planning consent.

LTGDV Explained

This is a critical metric in property development finance, especially relevant to land bridging loans. It determines the maximum loan amount we can provide, based on a percentage of the Gross Development Value of your project at completion.

Gross Development Value (GDV): The GDV represents the projected market value of your property or development post-completion of construction or renovation works.

75% ltgdv

In terms of a land bridging loan, we can lend up to 75% of your project’s estimated completed value. For example, if your development’s GDV is around £1,000,000, you could be eligible for a land bridging loan of up to £750,000 from Mortgage Lane.

With Planning Permission

Full planning permission indicates that your development project has been authorised by the local planning authority. This reduces risk for the lender, making it easier to secure a land bridging loan, as it assures that your project is legally compliant and ready to proceed.

Without Planning Permission

Lacking planning permission makes obtaining a land bridging loan more challenging. Unapproved land use or development plans increase lender risks. Without official sanction, the potential value and viability of the development are unpredictable, complicating our ability to finance it.

In conclusion, full planning permission is essential for securing a land bridging loan for your development finance. It legalises your project and clarifies the lending process, allowing us at Mortgage Lane to confidently invest in your development’s future value. Absence of planning permission, conversely, substantially restricts your financing options due to heightened risks.