Loan Case Study 1:
Land With Planning
Loan Type: Bridging Loan
Location: Somerset
LTV: 80%
Rate: 1% per month
Term: 12 months
Asset Type: Land with Planning Permission
Loan Purpose: Planning Enhancement & Development Exit
The Opportunity
Severn Capital was approached by an experienced property developer seeking to purchase a site in Somerset with existing residential planning permission. The developer’s strategy was to enhance the current planning approval to increase site value and development potential prior to securing a development finance facility.
Our Solution
We provided an 80% Loan-to-Value bridging facility, fixed at 1% per month over a 12-month term. The speed and certainty of our funding allowed the borrower to complete the acquisition quickly, securing the site and beginning the planning enhancement process without delay.
Exit Strategy
The primary exit was to refinance onto a development finance facility once enhanced planning permission was granted. However, to ensure a robust fallback position, the loan was also structured to allow for exit onto development finance using the existing planning, should the enhanced permission not be secured.
The Outcome
By structuring the loan around both potential outcomes, we provided the developer with the flexibility and confidence needed to move forward. This case demonstrates Severn Capital’s ability to support strategic land acquisitions with tailored bridging solutions designed to adapt to multiple exit scenarios.