Buying Land with or Without Planning Permission Explained

So, you want to build your own home or create a cosy getaway on a plot of land? 

Great! But before you start planning, there’s one big hurdle: planning permission. 

This is the paperwork that can make or break the dream for many new landowners. 

If you’re thinking about buying land with or without planning permission, there are a few key things you need to know to keep everything on track.

This article will guide you through the benefits, risks, and mortgage options for both scenarios, helping you make the most informed choice for your future project.

What Is Planning Permission, and Why Do You Need It?

Planning permission is approval from the local council that allows you to build or make major changes to a property. 

If you want to put up a new building or make big changes to an existing one, you’ll usually need planning permission. 

Without it, you could be forced to tear down your work. Imagine building your dream shed only to have it demolished—not ideal!

There are two main types of planning permission: outline and full.

Outline planning permission gives you initial approval for your ideas, while full permission means the council has approved every detail. 

Which one you need depends on the size and scope of your project. If it’s a big project, you’ll likely need full planning permission.

Can You Buy Land Before Getting Planning Permission?

Yes, you can buy a plot of land before getting planning permission, but it comes with risks. 

If the land doesn’t have permission, you’re taking a chance on whether you can do what you want with it. 

It’s a bit like buying a lottery ticket—it might work out, or it might not. It can be exciting, but you need to be ready for some uncertainty.

There is also something called an “option” you can purchase when buying land without planning permission. 

This means you get first rights to the land, but you don’t have to complete the sale until you know if planning permission is approved. 

How Does Buying Land With Planning Permission Work?

Buying land with planning permission is the simpler route. Once you have planning permission, you can start building straight away. 

Less risk, less hassle. 

But, it usually costs more. 

If the land already has planning permission, the seller knows it’s more valuable, so you might end up paying extra. But, it could save you a lot of paperwork and stress later on.

On the other hand, if you like shortcuts, buying land without planning permission might not be the easiest choice. 

It can mean delays, extra costs, and possibly even a rejection from the council. But it’s often cheaper, so it depends on how much risk you’re willing to take.

Can You Get a Mortgage for Land Without Planning Permission?

Getting a mortgage for land without planning permission can be tricky. 

Banks like security, and nothing says “security” like land with all the right permissions in place. 

If you want a mortgage for land without planning permission, you might have to work a bit harder compared to buying land that’s already approved.

Most high street banks in the UK are cautious about these loans, but it’s not impossible. 

Self-build mortgage lenders are more open to the idea, especially if you have a solid plan or outline permission. They like a good project—as long as you can prove everything is in order.

If you don’t want the hassle of getting a mortgage, there are other ways to finance it. 

Bridging loans can help you buy land without planning permission, and you can refinance once you get approval. 

These loans can be pricey, but if you’re determined, they could be what you need to get started.

Benefits of Buying Land Without Planning Permission

Buying land without planning permission can have some advantages. The biggest benefit is the cost—land without planning permission is usually much cheaper. 

This lower price can make it a more affordable option if you’re working with a tight budget or looking for a good deal. 

You also have the freedom to apply for planning permission that suits your specific vision, rather than being restricted by existing plans.

Another benefit is the potential for greater flexibility. You might be able to negotiate terms with the seller or explore creative options for developing the land. 

While it’s riskier, buying without planning permission can give you more control over what you build and how you go about it.

What Are the Risks of Buying Land Without Planning Permission?

Buying land without planning permission is a gamble. You’re putting your money on the line, and there’s no guarantee you’ll get what you want. 

If you get planning permission, great! But if not, you’ve bought an expensive garden plot that you can’t build on.

The biggest risk is simply not getting planning permission. It can be refused for many reasons:

• Your planned build overshadows your neighbours, affecting their access to natural light.
• The design doesn’t fit in with the local style or character of the area.
• The land is in a conservation area or an Area of Outstanding Natural Beauty.
• There are protected trees or wildlife habitats on the site.
• Your build affects the privacy of neighbouring properties.
• The planned development causes a loss of natural light for neighbours.
• The proposal doesn’t meet local building standards or size requirements.
• The council believes the build will negatively impact the local community or environment.

Even if you do get planning permission, it can take a long time. We’re talking at least six months, and it could even take a few years. 

You might have to deal with back-and-forth discussions with the council, surveys, and appeals. 

It can really slow down your plans, which isn’t ideal if you want to get started soon. 

If the area is of special interest or an Area of Outstanding Natural Beauty, it will be even harder to get approval.

Is Buying Land Without Planning Permission Worth the Risk?

Whether you buy land with or without planning permission comes down to risk versus reward. 

If you’re okay with some risk, buying land without planning permission can save you money. But if you prefer a safer option, buying land with permission is the way to go.

Think of it like this: buying land with planning permission is like buying a ready-made meal—you know exactly what you’re getting, and it’s ready to go. 

Buying land without planning permission is like cooking from scratch. It takes more effort and time, but the result could be much more rewarding.

Key Takeaways

• Planning permission is council approval required for new builds or major property changes; without it, you might have to demolish your work.
• Two types: outline permission gives preliminary approval; full permission is detailed approval often needed for large projects.
• You can buy land without planning permission, but it’s risky as approval isn’t guaranteed.
• An “option” agreement lets you reserve land but not commit until permission is granted.
• Land with planning permission is more straightforward to buy and build on but usually costs more.
• Getting a mortgage on land without planning permission is difficult; self-build lenders or bridging loans are options.

The Bottom Line

In the end, whether you decide to buy land with planning permission or take the leap without it, the key is to know exactly what you’re getting into. 

If you don’t mind some uncertainty and like a challenge, buying without planning permission could be for you. 

But if you prefer certainty, it’s probably worth paying extra for that peace of mind.

No matter what you choose, make sure you do your homework, speak to experts, and consider getting help from a mortgage broker. 

It can feel overwhelming, but if you’re well-prepared and ready for whatever the council throws at you, you’ll be in a good position. 

Get in touch with us, and we’ll connect you with a qualified mortgage broker who can help you get the best deal, guide you through the paperwork, and answer any questions about financing your land purchase.