£1.15 Million Bridging Loan to Acquire Development Land

A £1.15 million bridging loan enabled a client to acquire a prime plot of land earmarked for residential development while waiting for planning approval and long-term development finance.

The client identified a strategic development site in a desirable area with strong market demand. Immediate funding was required to secure the land, as competing developers were also interested. Traditional lenders were unable to act quickly due to the pending planning permission, making a short-term bridging solution essential.

The Challenge

The client faced several obstacles:

• Rapid acquisition required to secure the land
• Planning permission still in process, limiting options for traditional finance
• Need to preserve liquidity for future development costs

Without quick funding, the land would likely have been acquired by another buyer.

The Solution

Global Bridging Finance arranged a £1.15 million bridging loan secured against the land and an existing property within the client’s portfolio.

The loan was structured over a 12-month term, with interest retained to reduce cashflow impact. This allowed the client to:

• Complete the land purchase quickly
• Begin initial site preparation while awaiting planning approval
• Maintain liquidity for upcoming construction and development costs

Cross-collateralisation provided security to the lender while allowing the client full access to the funds needed.

The Exit Strategy

The client’s exit strategy involved:

• Securing planning permission for residential development
• Refinancing the bridging loan into a long-term development finance facility
• Drawing down further development funds as required

The clear exit plan reassured both lender and borrower that repayment could be achieved without risk.

The Outcome

The bridging loan enabled the client to:

• Acquire the land ahead of competing bids
• Begin preliminary works without delay
• Preserve liquidity for future development costs
• Transition seamlessly to development finance once planning permission was granted

This case highlights how bridging loans for land acquisition can provide speed, flexibility, and certainty for developers pursuing time-sensitive opportunities.