Featured Snippet: Articus Finance arranged funding for an experienced developer purchasing land without planning, securing a £4.22m bridge and 90% build cost finance to deliver an 18-unit project with a £21m GDV in Surrey.
Introduction
For an experienced developer purchasing land without planning, financing is often one of the greatest challenges. Land without planning permission significantly increases lender risk, which restricts financing availability and raises barriers even for seasoned developers. This case explores how Articus Finance assisted a client acquiring land in Surrey for a future apartment scheme, navigating a complicated funding process and ensuring the pathway was clear from acquisition through construction to delivery.
Client Background
Our client was a highly experienced property developer with an established track record of successful residential projects. In this case, they sought to purchase a prime site in Surrey for the construction of 18 new apartments. The site carried notable development potential but, critically, no planning consent at the time of acquisition.
The land was valued at £6.5 million with estimated build costs projected at £8.3 million. Upon completion, the development was expected to realise a Gross Development Value (GDV) of £21 million. To pursue this opportunity, the client required a staged funding solution: initial short-term finance to purchase the land and later development funding to cover construction costs once planning was secured.
The Challenge
Key obstacles for the client included:
- Lack of planning consent – limiting the pool of lenders willing to finance initial acquisition.
- High-value land purchase – £6.5m acquisition requiring £4.22m in finance at 65% LTV.
- Significant construction costs – £8.3m was required to build out the planned apartments.
- Project timeline complexities – planning expected to be in place within 6–8 months, requiring transitional finance before development funders engaged.
For many developers, this combination results in slow progress or capital inefficiency, tying up liquidity that should otherwise remain flexible across portfolios.
Our Solution
Articus Finance sourced a carefully structured, phased finance package. The strategy combined bridging finance for acquisition with subsequent development funding for construction, all managed through trusted lender partners with appetite for higher-risk development opportunities. Specifically, the solution provided:
- A bridging loan of £4.22 million at 65% LTV to secure the land acquisition without planning consent.
- A development finance package covering 90% of the build costs once planning was granted.
- A staged repayment structure allowing refinancing from the bridge into development finance seamlessly, ensuring project continuity.
- Cash-flow efficiency, enabling the client to preserve liquid capital and deploy funds effectively across their wider portfolio.
This solution highlighted the ability of Articus Finance to coordinate complex transactions, matching lenders willing to work with developers at early acquisition stages while ensuring future development stages were fully underwritten and ready to progress.
Key Highlights
- Land acquisition: £6.5m.
- Land purchased with 65% LTV bridging loan (£4.22m).
- Build costs: £8.3m with 90% covered by development finance.
- Gross Development Value: £21m upon completion.
- Financing structured in two phases to align with project milestones.
Why Articus Finance Delivered
Securing funding for an experienced developer purchasing land without planning requires more than brokerage; it requires advocacy with lenders, strategic structuring, and a clear understanding of both risk and opportunity. Articus Finance brought together private lenders capable of absorbing higher risk and layered in development finance to align liquidity with construction demands.
Our ability to negotiate such high-leverage terms reflects our discreet but direct relationships with specialist funds and private banks. We streamlined the process from acquisition through development, ensuring the client was never constrained by liquidity shortages or lender hesitancy.
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Final Thoughts
This case exemplifies the importance of specialist funding for an experienced developer purchasing land without planning. By orchestrating a two-stage solution with bridging and development finance, Articus Finance enabled the client to acquire valuable land, secure planning, and move forward with a high-value 18-unit scheme that is projected to deliver £21m in GDV.