Purchasing commercial land — whether for development, agriculture, or investment — requires specialist finance. Commercial land mortgages differ significantly from standard property mortgages, with unique eligibility criteria and lending structures. Our brokers access lenders with genuine appetite for land finance.
From 6.00%
Interest rate
Up to 70%
Loan-to-value
1-15 years
Mortgage term
£75,000
Minimum loan
Yes — you can get a commercial mortgage on land for commercial purposes, development, or investment. A commercial mortgage for land is a type of loan secured against the land itself, used to purchase a property site for future development, business use, or to hold as an investment. Land mortgages are available for agricultural land, brownfield sites, greenfield plots, and existing commercial properties with development potential.
Land mortgages differ significantly from standard commercial mortgages because the property has no buildings generating rental income. Lenders assess land loans primarily on the value of the property, planning status, and the borrower's plans for the site. Our broker team specialises in land finance and works with lenders who actively lend on all types of commercial land across the UK.
Land mortgages represent one of the more specialist areas of commercial lending. The absence of buildings generating income means lenders take a different approach to risk assessment. Key factors include the planning status of the land, its location, accessibility, existing services (drainage, electricity, water), and the borrower plans for the site. Land with full detailed planning permission for residential or commercial development is significantly more valuable and easier to finance than agricultural land or sites without planning consent. Our broker team has extensive experience in all types of land finance and works with lenders who understand the unique characteristics of land as an asset class.
The types of land that can be financed include: agricultural land for farming operations, brownfield sites for redevelopment, greenfield plots with residential or commercial planning consent, strategic land identified in local plans for future development, amenity land, woodland, and specialist sites such as caravan parks, solar farms, or telecommunications installations. Each land type attracts different lenders and different terms. Our broker team covers the full spectrum of land finance and has established relationships with specialist land lenders who may not be accessible through mainstream broker channels.
Land with planning permission — particularly detailed residential planning consent — is one of the most sought-after asset classes in UK property. Developers, house builders, and investors actively compete for consented sites, creating a liquid market that supports strong valuations and lending confidence. Even land without current planning consent can have significant value if it is in a location identified for future development, making land finance an important tool for investors who understand the UK planning system and can identify sites with development potential ahead of the wider market.
Interest rates for commercial land mortgages range from 6.00% to 12.00%, depending on the lender, LTV, planning status, and borrower profile. Land without planning permission attracts higher rates and lower LTVs than land with full planning consent. A fixed interest rate or fixed rate product offers certainty on repayments, while variable rates track the base rate.
Most lenders will lend up to 50-65% LTV on land — significantly lower than the 75% typically available on built commercial properties. Land with detailed planning permission may attract up to 70% LTV from specialist lenders. Eligibility depends on the land type, location, planning status, and the borrower's track record. Eligibility criteria also include evidence of how you plan to repay the loan, whether through development and sale, long-term hold, or refinance.
Fees are typically 1-2% arrangement fee, plus valuation and legal fees. A mortgage offer for land will specify the repayment structure and any conditions relating to planning. Monthly repayments on land loans tend to be interest-only during the development phase, with capital repaid at the end of the term.
The gap between rates for land with and without planning permission can be substantial — typically 2-4 percentage points. This reflects the uncertainty inherent in land without consent. Strategic land holdings (land identified for future development in local plans but without current planning permission) occupy a middle ground and can attract specialist finance from land-focused lenders and funds. For land purchases that form part of a wider development strategy, combining a land mortgage with subsequent development finance can provide a seamless funding path from acquisition through to completed development. Our team structures these multi-stage finance packages to ensure continuity and competitive terms throughout the project lifecycle.
For land being purchased with the intention of obtaining planning permission and then selling to a developer, bridge-to-sell finance can be an effective solution. This short-term funding covers the land acquisition cost while you pursue planning consent, with the loan repaid from the proceeds of the subsequent land sale. Interest rates for bridge-to-sell arrangements are typically higher than standard commercial mortgages but lower than development finance, reflecting the shorter holding period and defined exit strategy. Our team arranges bridge-to-sell finance with terms from 6 months to 3 years, matching the expected planning timeline for your specific site.
Several type of mortgage and finance options exist for land purchases. A standard commercial mortgage is suitable for land held as a long-term investment or for business purposes. For development projects, development finance provides staged funding as construction progresses. A bridging loan can fund quick land purchases — for example, at auction — before longer-term finance is arranged.
A buy-to-let mortgage is not typically available for bare land, as there is no rental income to service the debt. However, once buildings are constructed and tenanted, the land and buildings can be refinanced onto a standard commercial mortgage. Business loans may also be used to fund land acquisition alongside other business mortgage products.
For business owners looking to buy commercial property or land for their own operations, an owner-occupied mortgage may be available once buildings are in place. Land used for business premises — such as storage yards, car parks, or agricultural operations — can be financed through specialist lenders who understand these commercial purposes. Your property may be repossessed if you do not keep up repayments on your mortgage.
Agricultural land mortgages serve a different market, with specialist agricultural lenders (including AMC, Clydesdale, and specialist agricultural finance houses) offering products designed for farming operations. These may include seasonal repayment structures that match farming cash flow cycles, equipment finance alongside the land mortgage, and diversification funding for rural enterprises such as farm shops, holiday lets, or renewable energy installations. Our broker team covers the full spectrum of land finance requirements, from urban development plots to rural agricultural holdings.
For investors purchasing land as a long-term strategic holding, interest-only finance minimises the monthly cost while you wait for planning consent or value appreciation. Some specialist land funds and private lenders offer innovative structures including profit-share arrangements where the lender accepts a lower interest rate in exchange for a share of the eventual development profit. These structures can significantly reduce the carrying cost of land while it appreciates in value or progresses through the planning system.
For land purchases being made as part of a self-build residential project, specialist self-build mortgages provide staged funding that covers both the land acquisition and subsequent construction costs. These products release funds at agreed construction milestones, minimising interest costs by limiting drawn funds to only what is needed at each stage. Our team arranges self-build finance alongside standard commercial land mortgages, ensuring you have access to the full range of land funding options regardless of your intended use for the site.
Applying for a commercial land mortgage involves a thorough assessment by the lender. You will need: details of the land including location, size, and planning status; evidence of your development or investment strategy; personal and business financial statements; and proof of your ability to repay the loan.
A mortgage broker or relationship manager at CMB will guide you through the process, presenting your application in the strongest possible light. Our broker team accesses specialist land lenders, challenger banks, and private finance providers. The application process typically takes 6-12 weeks, with more complex sites requiring additional due diligence.
The lender will commission a specialist land valuation considering the current use value, hope value (reflecting planning potential), and comparable land sales. Once approved, your mortgage offer will detail the loan amount, interest rate, repayment terms, and any conditions. A capital repayment holiday may be available during the initial holding period. The creditor holds a first charge over the land as security. Contact us to discuss your land mortgage requirements.
Land valuations are more subjective than valuations of built property, and different valuers can reach materially different conclusions. The main valuation approaches for land include: comparable sales method (comparing recent land sales in the area), residual method (working backwards from the value of completed development minus construction costs), and investment method (for income-producing land such as agricultural holdings). Choosing the right valuer with specific land expertise in your area and property type is crucial. Our team recommends experienced land valuers from our network and reviews valuations to ensure they fairly represent the site potential.
For larger or more complex land transactions, lenders may require additional professional reports beyond the standard valuation. These can include: environmental impact assessments, contamination reports, ecological surveys, flood risk assessments, and highways access appraisals. The cost of these additional reports can be significant (£5,000-£25,000+ depending on the site and assessments required) but they are essential for lender confidence and should be budgeted for from the outset. Our team advises on which reports are likely to be required for your specific site and can recommend experienced consultants from our professional network.
If you already own commercial land, refinance options can help you release equity, secure a better rate, or fund development costs. Refinancing land is particularly valuable when planning permission has been obtained, as this can significantly increase the value of the property and allow higher borrowing.
Owning commercial property or land outright gives you options to raise capital against the asset without selling. This can fund new property purchases, business expansion, or development costs. The commercial mortgage is a loan secured against the land, so the lender assesses the current market value and your exit strategy.
Whether you are holding land for long-term investment, developing it for residential property or commercial use, or using it for business purposes, our team provides expert guidance. We work with lenders who understand land valuations and offer competitive terms for refinance and release equity transactions. Fees are typically lower for refinancing than for new purchases. A semi-commercial approach may apply if the land has mixed planning consent. Matt Lenzie's banking background ensures institutional-quality advice on every land finance transaction.
Land refinancing is particularly powerful when combined with planning milestones. Each stage of planning approval — from allocation in the local plan, through outline permission, to detailed/reserved matters consent — increases the land value and potentially improves the lending terms available. Some operators use a staged approach: purchasing land with initial finance, obtaining planning consent, then refinancing at the enhanced value to release equity for the next project. Our team advises on the optimal timing and structure of land refinancing transactions to maximise the value extracted at each stage of the planning journey.
For investors and developers, the key to successful land finance is matching the finance structure to your development timeline. Short-term bridging finance may suit a quick acquisition ahead of planning submission, while a medium-term land mortgage provides a more cost-effective holding structure for sites in the planning pipeline. Once planning is secured, development finance takes over to fund construction, and the completed development is refinanced onto long-term commercial mortgages or sold. Our team structures multi-phase land and development finance packages that cover the entire journey from raw land acquisition to completed, income-producing property.
Our team also advises on option agreements and conditional contracts — legal structures that allow you to secure the right to purchase land at a future date subject to planning consent being obtained. These arrangements can reduce the upfront capital requirement while locking in a favourable purchase price, and specialist finance options exist to fund option fees and planning costs during the consent period.
Land finance is a specialist area where mainstream bank appetite varies significantly. Not every lender will lend on bare land, and those that do apply strict criteria around planning status, location, and borrower experience. A specialist broker like CMB accesses the full market — including private lenders, specialist funds, and challenger banks — to find the right type of loan for your land purchase.
We help business owners and investors navigate the complexities of land mortgages, from initial enquiry through to completion. Whether you need a commercial mortgage for a strategic land holding, development finance for a construction project, or a bridging loan for a time-sensitive land acquisition, our expert team delivers competitive solutions. Fixed interest and variable rate options are available depending on your preferences.
Use our mortgage calculator to estimate costs, or get in touch for a free initial consultation on your commercial land mortgage needs.
At CMB, our land finance expertise is built on decades of experience in commercial lending. Matt Lenzie corporate banking background at Lloyds Bank and Bank of Scotland included structured property lending and land finance, giving us deep insight into how banks assess land transactions. We apply this institutional knowledge to every land mortgage application, whether it is a £100,000 agricultural plot or a £10m+ strategic development site. Our panel includes specialist land lenders, private finance providers, family offices, and development finance houses alongside mainstream banks, ensuring we cover the full market for our clients.
Whether you are purchasing a small plot for a single building project or assembling a multi-acre strategic land holding, our specialist land finance knowledge ensures you access the right funding structure at the most competitive terms available. Contact us to discuss your specific land mortgage requirements and receive a tailored finance proposal within 48 hours.
“Every land application is different. I work directly with borrowers to understand their objectives, structure the deal correctly, and present it to the right lenders. That hands-on approach consistently delivers better outcomes than going direct to a single bank.”
Matt Lenzie
Founder & Principal Broker, Commercial Mortgages Broker
Yes. Commercial land mortgages are available from specialist lenders. LTV is typically lower than for built property (50-65%), and interest rates are higher. Land with planning permission attracts better terms.
For commercial land, expect to provide a deposit of 35-50% of the land value. Land with detailed planning permission may require only 30-35% deposit from specialist lenders.
Land mortgage deposits typically range from 35-50%, depending on the planning status, location, and your experience as a developer or investor. Land with full planning consent requires less deposit than agricultural or unzoned land.
Yes. Development finance provides staged funding for construction projects and may be more suitable than a standard land mortgage if you plan to build. We can arrange combined land acquisition and development finance packages.
Commercial mortgages are available for agricultural land, brownfield sites, greenfield plots with planning permission, storage land, car parks, and strategic land holdings. The planning status significantly affects the terms available.
Typically 6-12 weeks, depending on the complexity of the site and any additional due diligence required. Bridging loans can complete in 7-14 days for urgent land purchases.