Strategic Land (Pre-Planning)
Cheshire
£1.2m
Loan Amount
12 months
Loan Term
16 days
To Completion
1.10% a month
Rate
55%
LTV
The Challenge
A developer had identified a brownfield site in Cheshire with strong residential development potential — former industrial land adjacent to an established housing estate. The site had no planning permission but a positive pre-application response from the local authority. The landowner wanted a quick sale and another developer was circling. The developer needed to secure the site immediately while planning was obtained.
The Complexity
Land without planning is one of the hardest assets to fund. Plenty of lenders steer clear, because the value depends on planning being granted. The site also had potential contamination from its industrial past, requiring an environmental desktop study. The LTV on unplanned land is necessarily lower, meaning the developer needed to fund a larger deposit from their own resources or cross-charge other assets.
How We Structured It
We found a specialist private-fund land lender we work with who had funded similar brownfield sites before. They understood the planning landscape in Cheshire and were comfortable with the pre-app response as evidence of likely consent. We cross-charged a retail unit the developer owned in Warrington to improve the overall LTV position. The environmental study was commissioned on day one and completed within a week, satisfying the lender's conditions.
The Outcome
Completed in
16 days
Rate achieved
1.10% a month
Total finance cost
£199,152
Result
Planning granted for 14 houses
How the days went
- Day 0Brownfield site in Cheshire with a positive pre-application response and no planning permission. The landowner wants a quick sale and another developer is circling.
- Day 1Environmental desktop study commissioned.
- Within a weekStudy completed, satisfying the lender's conditions.
- StructureA retail unit the developer owned in Warrington is cross-charged to improve the overall LTV position.
- Day 16Completion on a 55% LTV facility.
- AfterPlanning granted for 14 houses; the developer reports the site value has more than doubled.
What nearly broke it
Value with no planning behind it. Many lenders steer clear of land without consent, the site had possible contamination from its industrial past, and the LTV on unplanned land is low, so the developer needed more equity than the site alone provided. The cross-charge on the Warrington unit closed that gap.
If you are in the same position
Commission the environmental study on day one, and think early about what else you own that could be cross-charged.
Related: Land without planning permission · Guide: land without planning
Similar Situation?
Buying land, with or without planning? Send us the site and we'll tell you honestly what is fundable. Or read more about land finance.
Discuss your deal