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Having a time frame for your project is also recommended. A financial plan should contain a projection of costs with details on the build type, construction method, materials and labour cost. When applying for land finance, lenders will also request to see a detailed financial plan. Lenders will also be made aware of any risks involved with the plot of land.

This is to ensure lenders are fully aware of the type of land and its potential. Lenders will arrange for a surveyor to assess the land, regardless of planning permission. FPP also increases the value of the land, which can result in an increase in finance available if approved. This is usually the difference between being approved or declined. Having FPP on your plot of land makes your proposition a lot more viable for lenders. In addition, FPP applications must include detailed scale drawings of the dwelling(s) and contain information regarding any planning issues. FPP applications must also meet the above criteria to be eligible for land mortgages. Upper and lower limits for the height, width and length of the dwelling(s)įull Planning Permission (FPP) is usually valid for five years.The overall layout of the proposed dwelling(s).

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OPP must meet the following criteria to be eligible for a land mortgage, but full planning permission is preferred: OPP is usually valid for three years and once lapsed must be renewed. An OPP agrees in principle that either a dwelling or multiple dwellings can be built on the plot of land. Outline planning permission (OPP) is an agreement in principle from your local planning department. On the other hand, a plot of land that has planning permission to build several dwellings is a money machine as far as lenders are concerned and can result in land finance being secured with ease. This is why there are so few lenders willing to even assess applications! Sure, green belt land may eventually get planning permission, but a lender could be waiting a number of years before planning permission is granted. This is because planning permission adds even more value to land and clearly outlines the intention of what the land is going to be used for.Ī plot of land that can’t be built on, such as green belt land, isn’t an attractive proposition for lenders. Having planning permission on a plot of land will ensure access to most lenders and can unlock the best rates. Will I need planning permission for a mortgage on land?

What types of land can I get a mortgage on?ĭepending on the type of land you wish to purchase, the finance and lenders available will vary, as will the rates offered. Choosing the right mortgage depends on what you wish to do once you’ve purchased the plot. The types of mortgages available for buying land include:Įach mortgage type can be suitable to buy land. For this reason, trying to get a mortgage on a plot of land with no intentions to build can be difficult. For instance, if you’re building on the land lenders will want to see plans for your proposal. Lenders will want to know what your intentions are once you’ve purchased the land. When buying land, a home is yet to be built, so lenders view the proposition as high-risk. This is because a regular mortgage would include the purchase of a property, as well as the land it’s built on. Yes, a mortgage for land is possible but the application process is different when compared to a residential mortgage. Land finance specialists Can I get a mortgage for land?.

How much deposit is required for a land mortgage?.

Will I need planning permission for a mortgage on land?.

What types of land can I get a mortgage on?.

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