Bridging finance for land purchases

The pace of land deals is accelerating

Land opportunities rarely wait. Auctions complete in weeks, sellers favour buyers who can move fast, and planning windows can be tight. Bridging finance exists for precisely these moments. It provides short-term funding that lets you secure land now and arrange longer-term finance later. In today’s market, speed and flexibility are decisive advantages.

The UK bridging sector has expanded rapidly, with loan books exceeding £10bn by late 2024 and forecasts pointing to roughly £12.2bn by the end of 2025. Quarterly lending has continued to climb, and completion times have shortened, reflecting a market that prioritises execution. Typical deals progress from offer to completion in roughly 38 to 43 days, markedly quicker than many traditional routes. That tempo matters for land purchases where a missed deadline can mean a missed opportunity.

Costs have also become more competitive. Average monthly rates have dipped as lender competition intensifies, and applications have risen. Investors and developers are using bridging for investment purchases, refurbishments, HMO conversions, and increasingly for land itself. Interest in lending against land has moved up the rankings, while higher loan-to-value options - often up to 75% - lower the equity hurdle, particularly useful for plots without habitable structures.

Bridging is not only about speed. The product is designed to create a clear path from today’s acquisition to tomorrow’s exit, whether that is selling the asset, refinancing to development finance, or switching to a buy-to-let mortgage once the asset is mortgageable. Data from recent case volumes shows property sale as the most common exit, followed by remortgaging onto longer-term solutions. Used well, bridging turns timing into a strategy rather than a risk.

For buyers of land - from seasoned investors to first-time plot purchasers - the practical question is straightforward: can bridging help you secure the site you want at the moment you need it? With faster decisions, flexible underwriting, and funding levels aligned to modern land deals, the answer is often yes.

Who benefits from this approach

If you are seeking to buy land quickly - at auction, off-market, or to capture a time-limited price - bridging can offer the certainty of funds on a short timetable. It suits buyers who expect to sell, refinance, or obtain planning in the near term and do not want to lose momentum waiting for slower finance.

It also supports investors expanding portfolios as market stability returns. With investment purchases forming a larger share of bridging activity, the product has become a mainstream tool for acquisitions that would not typically fit high street criteria, including plots without utilities or properties deemed uninhabitable. For consumers and landlords alike, it is a way to act now while preparing a clear exit tomorrow.

Your funding routes, at a glance

1. Regulated bridging for residential land linked to your home plans

2. Unregulated bridging for investment or development-led land purchases

3. Auction finance tailored to short exchange and completion deadlines

4. Refurb-to-exit or develop-to-exit bridging once planning is secured

5. Heavy or light works bridging for enabling infrastructure on sites

Cost, timing, returns, and what could go wrong

Can you qualify and what lenders look for

Eligibility for land bridging is practical rather than box-ticking. Lenders focus on the quality of the site, the plausibility of your exit strategy, and your ability to service interest during the term. They will want to understand whether you will sell, refinance onto development finance, or move to a longer-term mortgage once the land becomes mortgageable. For investment-led purchases, lenders may ask for evidence of experience, but strong professional teams can help first-time land buyers present credible cases.

Expect checks on title, access, utilities, and any restrictive covenants. Valuation will consider comparable land sales and any planning momentum that could drive uplift. Where planning is being sought, a realistic timetable and buffer is essential. If the asset is linked to your residence, a regulated product may apply and you will receive the appropriate consumer protections. If it is purely for investment, it is likely to be unregulated, with underwriting centred on the asset and exit.

As a UK-based retail finance broker, Kandoo can introduce you to specialist lenders that regularly fund land purchases. We help you compare rates, terms, and fee structures, and we work with your solicitor and valuer to keep timelines on track. The goal is simple: a clear path from offer to completion, then a predictable switch to your exit.

From enquiry to funds in your account

1. Tell us about the land and your intended exit

2. Receive indicative terms and checks on feasibility

3. Instruct valuation and appoint your solicitor

4. Provide documents and respond to diligence queries

5. Final offer issued, with terms and conditions confirmed

6. Complete, draw funds, and secure the land

7. Progress planning or works while monitoring exit options

8. Refinance or sell to repay the bridge on time

Advantages and trade-offs

Read this before you commit

Bridging works best when the exit is clear and time-bound. If you intend to sell, pressure test likely valuations and allow for a margin of safety. If your plan is to refinance, check that post-works criteria will be met and that the asset will be mortgageable. Factor in planning risk and assume timelines can slip. Build a contingency into both your budget and your term, and consider how interest will be serviced if your exit moves by a month or two.

Lenders are more comfortable when the legal path is clean. Resolve title quirks early, have searches ready, and use solicitors experienced with land deals. The sector is busy and still growing, with quarterly lending rising and more deals completing. That is positive, but it also means you should prepare documents promptly so your case does not lose its place in the queue.

If bridging is not the right fit

1. Development finance for construction once detailed planning is granted

2. Commercial mortgages for serviced land with income

3. Joint venture equity or mezzanine to reduce cash input

4. Personal or business loans for smaller enabling works

5. Vendor finance or delayed completion agreements with the seller

Common questions, answered

Q: How quickly can I complete a land purchase with bridging? A: Many cases complete in roughly 38 to 43 days from offer, subject to valuation, legal work, and your responsiveness.

Q: What loan-to-value can I expect on land? A: On suitable land assets, LTVs can reach around 75%. The precise level depends on site quality, planning position, and the strength of your exit.

Q: What are typical costs beyond interest? A: Expect an arrangement fee of around 1% to 2%, plus valuation and legal costs. Some fees can be added to the loan, subject to lender terms.

Q: What are common exit strategies? A: The most frequent exits are property or land sale, or a remortgage onto buy-to-let or development finance once the project reaches the next stage.

Q: Is bridging suitable for first-time land buyers? A: Yes, provided the exit is robust. A strong professional team and a realistic timeline can offset limited experience.

Q: Can I use bridging for auction purchases? A: Yes. Bridging is designed for tight auction deadlines, aligning with exchange and 28-day or similar completion windows.

How Kandoo can help

Kandoo is a UK-based retail finance broker with access to specialist bridging lenders. We compare rates, terms, and LTVs, coordinate with your valuer and solicitor, and help you keep to a realistic timetable. Speak to us early in your process so we can prepare a route that matches your land, timeline, and exit.

Important information

This guide is for information only and does not constitute financial advice. Bridging loans are secured against property or land and may be at risk if you do not keep up repayments. Always seek personalised advice before committing.