Planning permission is one of the most critical factors lenders assess when considering development finance applications. Understanding what lenders look for can significantly improve your chances of securing funding and speed up the approval process.
Types of Planning Permission
- Full planning permission: The gold standard for lenders — detailed approval for the entire development
- Outline planning permission: Establishes the principle of development but lacks detail
- Permitted development rights: Allows certain changes without formal planning applications
- Prior approval: Required for some permitted development conversions
What Lenders Want to See
Clear and Detailed Plans
Lenders want to see comprehensive architectural drawings, project timelines, and cost schedules. The more detail you can provide, the more confidence the lender will have in your project.
Realistic Timelines
Your project timeline should be achievable and account for potential delays. Lenders will scrutinise overly optimistic schedules.
Compliance with Conditions
Planning permissions often come with conditions. Lenders will check that you understand and can comply with all conditions attached to your permission.
Professional Team
Having a reputable architect, contractor, and project manager demonstrates professionalism and reduces risk in the lender’s eyes.
Funding Without Full Planning
Some lenders will consider funding projects with outline planning or even pre-planning, but this typically comes at a higher cost and lower LTV. At StatusKWO, we assess each situation individually and can often find creative solutions for projects at various stages of the planning process.
Contact us to discuss your development project, whatever stage of planning you are at.