Bridging Loan Secured Against Farmland

The Scenario: 

A farmer was part way through building a house to sell on when unexpected costs meant he needed to raise an extra £150k to complete the build. 

The only significant asset the farmer had was a piece of land on his farm for which he had planning permission. The combined value of this land and the residence the farmer was building was £680k. 

However the farmer had no separate title for the land with planning permission, meaning most lenders were unwilling to secure a loan against it. 

The Solution: 

The farmer contacted Clifton Private Finance and we found him the funds he needed from a specialist lender who was willing to overlook the issue over the land title. We agreed a bridging loan term of 12 months at a rate of 1.15% for the full £150k at a loan-to-value ratio (LTV) of 22%. 

The client was thus able to finish building the house and sell it and the land with planning permission. This allowed him to repay the bridging loan and net a healthy profit.

In a similar situation? Call our bridging loan team on 0117 959 5094 or use our bridging loan calculator to get an indicative quote