Land can be one of the most lucrative assets available to investors, in that it’s relatively scarce and there’s a huge demand for quality land to buy.
Most house building companies have entire departments dedicated to negotiating and buying land for future use, and the competition for good land with the potential for planning can be absolutely fierce.
That’s why we know from our clients that when it comes to purchasing land, time is often of the essence, and to stave off competition they often need quick help with finance, and especially land finance.
We also have a large range of options for clients if it turns out that land finance isn’t for you.
What is land Finance?
In its simplest terms, land finance is a type of financing that would allow you to buy or develop on a piece of land. It can be used in either a very short term capacity of, say, 1 month, all the way up to five years.
Because most traditional lenders won’t lend for the purchase of land or development either, this is designed as a type of bridging finance. There are, however, land mortgages also available which are designed to much longer term solutions.
You can use this type of finance to fund the purchase of any type of land and these loans are typically very flexible in terms of amount and length of time, which makes them an ideal solution for many of our clients.
Can I get a bridging loan to buy land?
This type of finance is, essentially, a form of bridging finance, so yes, it’s perfectly possible for you to use bridging loans to buy land.
There will often be some slight differences in the categorisation of loans, and some different names given to them, however, broadly speaking, unless it’s a mortgage you’ve arranged then the likelihood is that you’ll be using bridging finance.