Land and acquisition finance
Deal box · EUR 1M to 50M+
Borrowers · Land purchase and acquisition
What a land purchase loan does.
See our approachThe funds are released on the day the purchase completes, so the land or building is secured on the date the seller expects.
A plot still awaiting consent, a site with permits in hand, or an existing building bought to hold, let or refurbish.
A tenor matched to the exit, from a resale to a development facility, within a deal box of EUR 1M to EUR 50M+ and exceptions case by case.
Land acquisition finance is read on the site and its permission. A plot with planning consent carries more value as security than one still waiting for it, so investors weigh the price against an independent valuation of the land as it stands, then test the plan for it and the route out of the facility.
Watson AM does not lend. We assess the purchase, structure the facility and its security, prepare the file and present it to the investors in our network it suits. Each investor makes its own assessment and the funding decision.
How fast a purchase moves.
A land purchase loan, like any acquisition finance, runs to the completion date in the purchase contract. Our side of it is set out below; the investors’ own checks, the valuation and the title search set the rest.
Enquire
The land, site or building, the purchase price and the completion date, the amount sought and the exit. A short brief is enough to begin.
Read
A principal reads the brief, checks it against the deal box and asks for anything missing.
Terms
Indicative terms in writing, with the security and the drawdown at completion set out.
Investors decide
Each investor runs its own checks and decides; 58 days is our average from mandate to funding.
Indicative terms are subject to investor approval, due diligence and final documentation. Funding is not guaranteed.
What is bought sets the test.
Bare land, a permitted site and a standing building are read differently. Pick one to see what investors test.
Land finance for a plot that has no planning consent yet is the most cautious case. The land earns nothing and its value rests on what may be built, so the advance is usually lower and the exit has to hold even if consent comes late.
What investors test
- Value as it stands
- Planning prospects
- The exit
Land development finance covers a site bought with permits in hand or close to it, ahead of a ground-up build. The purchase facility is often the first stage, converting into development finance once the scheme starts.
What investors test
- Permits
- Build cost and GDV
- Route to the build
A standing building bought to hold, to let or to work on is valued on what it is today and on its income, if it has one. Where works follow the purchase, the same facility can carry them as refurbishment finance.
What investors test
- Current valuation
- Income or works plan
- Title and register
From the case files.
A Herlev purchase, placed with patience.
Facility
CHF 1'000'000
acquisition
Loan-to-value
79.2%
Term
3 years
Term sheet
4 months
A property purchase in Herlev, Greater Copenhagen, needed a more complex underwrite than most, and its ownership structure took time to work through. We took the time, and the borrower found the right investors for the file rather than the fastest ones. Why some files take longer.
A first-rank mortgage and a personal guarantee secure the facility. Its loan-to-value is a historical one: facilities today run at up to 75%. Land is on the book too: a construction plot in Barrow-in-Furness was funded at 66% within a week of first contact, a file told on the bridging finance page.
Land and acquisition questions.
The questions buyers ask first about land finance. If yours is not here, write to us and we’ll take it from there.
What is a land purchase loan?
A land purchase loan is a secured facility that funds the purchase of a plot or a development site. It is usually drawn at completion and repaid from a sale, a refinancing or the development facility that follows once permits are in hand. Watson AM arranges land purchase loans and wider acquisition finance across Europe and presents each facility to the investors in its network it suits.
How much can I borrow with a land purchase loan?
Our deal box runs from EUR 1M to EUR 50M+, with exceptions considered case by case, at up to 75% loan-to-value. Land without planning consent is usually advanced at a lower loan-to-value than a site with permission, because its value depends on what can eventually be built there.
Do you arrange finance for a single building plot?
Only where it fits the deal box. Facilities start at EUR 1M and are arranged for businesses: developers, property companies and operators. A private buyer financing a plot for their own home is usually better served by a bank mortgage.
Can land finance turn into development finance?
Yes. Buying the site is often the first stage of a scheme: the land is acquired, the permits are secured, and the facility is then refinanced or extended into development finance drawn against the build. Planning that route from the start keeps both stages on terms that fit each other.
How quickly can a purchase be financed?
A principal reads your brief within 24 hours, and indicative terms follow within 72 hours of a complete enquiry. Across our files, the average from mandate to funding is 58 days, so the financing is best started before the purchase contract fixes a completion date. Indicative terms are subject to investor approval, due diligence and final documentation. Funding is not guaranteed.