Planning Gain Finance
Planning gain finance funds the purchase or holding of a site while planning permission is pursued, repaid either from the sale of the consented land at its uplifted value or by refinancing into development finance once consent is granted. Lenders advance against the land's current value without planning — usually 50–65% — not against the value it will reach with consent, so the borrower funds the gap and the planning costs. Rates run from around 0.85% per month, terms from 12 to 24 months to accommodate the planning timetable, and the underwriting question is always the same one: how likely is this consent, and what is the site worth if it never arrives.
Criteria and pricing
What lenders on our panel will typically do on this product today.
- Loan to value
- 50–65% of current unconsented land value
- Rate
- From ~0.85% pcm; higher where consent is speculative
- Term
- 12–24 months, extendable to the planning timetable
- Arrangement fee
- 1.5–2%
- Interest treatment
- Almost always rolled — the site produces no income
- Exit
- Sale with consent, or refinance into development finance
- Planning costs
- Funded by the borrower; occasionally part-funded against a strong pre-app
- Security
- First charge over the land, plus personal or corporate guarantee
Worked example — 2.5 acres with a positive pre-application
- Land value without consent
- £600,000
- Facility at 60% LTV
- £360,000
- Borrower equity plus planning costs
- £300,000
- Rate at 0.95% pcm, rolled, 18 months
- ≈ £66,000 interest
- Arrangement fee at 2%
- £7,200
- Land value with outline consent for 14 units
- £1,650,000
- Redemption at month 18
- ≈ £433,000
- Loan to value on exit
- ≈ 26%
Figures are typical UK market ranges as at 2026 and are indicative only — your terms depend on the asset, the exit and the lender we place the case with.
Who this works for — and who it does not
You are likely to qualify if
- A site with a plausible planning route — allocation, a positive pre-application, or a clear policy argument
- A planning consultant appointed, with a written strategy and timetable
- Equity of 35–50% of the land value, since lending is against the unconsented figure
- A fallback position: what the land is worth, and who buys it, if consent is refused
- Evidence you can fund the planning process and the rolled interest for the full term
This is the wrong product if
- Green belt or heavily policy-constrained land with no realistic route to consent
- Borrowers relying on the loan to fund the planning application itself
- Sites where the purchase price already reflects hope value — lenders value on today's use, not the option agreement
- Timetables shorter than the local authority's actual determination performance, which we check before quoting
What actually happens, and when
- Day 0–3
Planning position review
We read the pre-app, the local plan position and the consultant's timetable, then size the facility against the unconsented value.
- Week 1–2
Terms and valuation
Valuation is instructed on existing use plus a hope-value commentary. This figure, not your appraisal, sets the loan.
- Week 2–5
Legals
Title, access, overage clauses and any option or promotion agreement are reviewed. Overage attached to the title frequently reduces the advance.
- Determination
Exit planning
Three months before consent is expected we start the exit — either marketing the consented site or arranging the development facility, so the bridge does not run past term.