Unlocking Value: How to Secure a Planning Amendment Re-Bridging Loan for Your Development
Introduction
Many property developers and investors in the UK find themselves in a tricky situation when they decide to amend an approved planning scheme. Whether it’s realising that a site can accommodate more units or making changes to maximise returns, these amendments often require additional funds.
However, if the property was originally financed through a bridging loan, securing further funding can be challenging. Lenders are generally hesitant to re-bridge a loan, particularly when the end of the term is near and the property value has not significantly increased.
At Sunrise Commercial Finance, we specialise in providing a Planning Amendment Re-Bridging Product—a solution tailored to developers who need to refinance, extend loan terms, and cover planning costs.
This guide will break down how this works, why it’s beneficial, and how you can access this type of funding—even if your current lender is unwilling to assist.
Understanding the Problem: Why Do Developers Need a Planning Amendment Re-Bridging Loan?
It’s common for property developers to purchase land or a site with planning permission, only to later realise that they could make better use of the space. For example, a developer might buy a site with planning for five flats but later discover that, with some tweaks, they could fit seven units instead.
However, modifying a planning application mid-process or post-approval can bring several challenges:
- Existing Bridging Loan Nearing Maturity – Most bridging loans are short-term (12-18 months), meaning developers may need to refinance before the project is complete.
- Property Value Stagnation – If the market hasn’t moved significantly since the purchase, the lender may be reluctant to provide additional funds.
- Additional Costs for Planning Amendments – Amending a planning application can be costly, with expenses for architects, consultants, and revised application fees.
- Limited Lending Options – Many lenders refuse to re-bridge a property, let alone factor in planning costs.
The Solution: The Planning Amendment Re-Bridging Loan
Unlike traditional lenders, we understand the evolving nature of property development. Our Planning Amendment Re-Bridging loan is specifically designed to support developers who need to amend their planning and require additional funding.
Key Features:
✅ Up to 70% of Open Market Value (OMV) with current planning (up to £2m loan size)
✅ Up to 100% of the Net Outstanding Loan (O/S Loan)
✅ Excess funds from the 70% OMV can be used for planning costs
✅ Where necessary, we can consider the OMV with the amended planning
This flexible approach allows developers to refinance their existing loan, secure extra capital for planning adjustments, and ensure they have the time needed to complete the project.
Case Studies: How Developers Have Benefited from Re-Bridging
Case Study 1: Maximising Density for Higher Returns
Background: A developer purchased a small site in London with planning for three townhouses. Midway through construction, they realised that by tweaking the design, they could secure planning for four units instead of three.
Challenges:
- Their initial bridging loan was about to expire.
- The lender was unwilling to extend or provide additional funding.
- The developer needed funds for the new planning process and construction adjustments.
Solution:
- We provided a Planning Amendment Re-Bridging loan at 70% of the OMV, refinancing their existing loan.
- The excess funds were used to cover planning costs.
- The project was completed with the enhanced scheme, increasing overall profits.
Case Study 2: Refinancing to Secure a More Profitable Scheme
Background: A developer acquired a site with permission for a 10-flat scheme but later found that a minor amendment could allow for 12 units. However, their lender refused to re-bridge, and they needed extra funds for the new planning application.
Challenges:
- Existing loan nearing its term with no extension available.
- Insufficient funds to cover planning amendment costs.
- Need for a lender willing to consider future OMV post-planning changes.
Solution:
- Our Planning Amendment Re-Bridging loan covered the existing debt at 100% of the O/S loan.
- Additional funds were allocated to secure the new planning approval.
- Upon achieving revised planning, the OMV increased, and they refinanced with a development loan.
Who Is This Loan Best For?
Our Planning Amendment Re-Bridging loan is ideal for:
🏗️ Developers who want to modify existing planning to increase density
🏡 Investors looking to reconfigure layouts for higher GDV
📈 Those who need to refinance their bridging loan before it expires
🔄 Developers whose current lender refuses to extend or refinance
How to Apply for a Planning Amendment Re-Bridge Loan
If you’re considering amending your planning and need funding, here’s how you can get started:
1️⃣ Assess Your Needs – Determine how much funding is required for the refinance and planning changes. 2️⃣ Gather Documents – Provide details on your current planning, OMV, outstanding loan amount, and proposed amendments.
3️⃣ Speak to an Expert – Contact our team to discuss eligibility and receive a tailored offer.
4️⃣ Secure Funding – Once approved, we handle the refinancing process, ensuring a seamless transition.
Final Thoughts: The Smart Way to Fund Your Planning Amendment
Making planning amendments can significantly enhance the profitability of your development. However, without the right funding strategy, you risk running out of time, capital, or lender support.
Our Planning Amendment Re-Bridging loan offers a flexible, developer-friendly solution, ensuring you can modify your planning, refinance existing debt, and keep your project on track.
If you’re facing a bridging loan expiry and need to amend your planning, get in touch today to discuss your options!
For more information contact us for a fees free chat.
https://www.sunrisecommercial.co.uk
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