Hope Capital will now lend on land without planning permission, offering up to 50% LTV.
Up until now, Hope Capital has only provided a loan suitable for land where planning permission has already been granted. However, this new offering ties in with its existing product, providing an opportunity for borrowers who need funding quickly to secure a bridging loan on a plot of land without planning permission.
Land that requires a planning gain will initially be written on a different interest rate than land that already has planning, however once the planning has been granted the lower interest rate will be retrospectively applied for the whole of the original term of the loan.
The key features of Hope Capital’s overall land offering includes:
- Rates start from 0.75% on land with planning and 0.99% on land without planning
- Up to 60% LTV on land with planning and 50% LTV on land without planning
- 3 – 18 month term
- No exit fees
- Min loan £150k
- England and Wales land with/without planning permission accepted
- Scotland with planning permission considered
- UK (foreign nationals, and ex-pats considered)
- Adverse credit considered
Roz Cawood (pictured), director of sales at Hope Capital, said: “The market for purchasing land is very competitive, which is why many borrowers find themselves in a situation where timescales are tight and they need to access funding quickly to secure the deal.
“At Hope Capital, we are committed to creating new opportunities, which will support brokers and borrowers. This is why we have developed a range of bridging loans for land, both for cases with and without planning permission. Our offering provides fast, reliable and flexible solutions for this purpose and can be used for purchasing the plot of land, gaining planning permission, achieving an uplift in value either for sale or to refinance for the development.
“It can be rare to find a finance option which accommodates land without planning cases, so we feel very confident this will be a huge success in the market and will be instrumental in propelling our bridging division into the next stage.”
