Unfortunately self build lenders will require outline planning permission at the very least before lending on the proposition. Although self-build loans are released in stages, the total loan is based upon the end value of the proposed new property, hence why they need outline planning as a minimum. They won’t release any monies without this being in place, as if planning couldn’t be obtained, then it would leave the lender holding a first charge mortgage on a piece of land, that would have a very limited value, and restricted saleability.
Alternate Financing
It may be possible to look at bridging finance to help you buy the property, and then refinance to a self-build mortgage, once the planning permission has been granted. Alternatively you can read our blog on planning permission.
If you’d like to discuss your options in more detail, then please contact one of our consultants on 020 4519 5101 and they’ll be able to give you an idea of how we can help.