Bridging Loans for Agricultural Businesses
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: £75k - £2M over 3 - 18 months. Agricultural land moves slowly, then all at once.
Agricultural land moves slowly, then all at once. When a neighbouring parcel comes to market, you often have days, not months. A bridging loan gives you a first-charge, short-term facility secured against the land or buildings you are buying, so you can exchange and complete while an agricultural mortgage is arranged behind it. That is the core mechanic: speed at the front end, refinance as the exit.
We place agricultural bridging regularly, and the lenders who say yes to this are not the high street. They are smaller, sector-literate books that understand Basic Payment Scheme entitlements, grazing agreements, and why a dilapidated barn with permitted development can be worth materially more than its agricultural value on paper. That matters for the LTV you can draw. A lender pricing purely on agricultural value might work to around 60% LTV; one that recognises the conversion potential may go higher against the gross development value.
The exit route has to be credible. The ones we place against most often are refinance to an agricultural or rural commercial mortgage once you hold the asset, sale of a converted unit such as a barn to residential or holiday let, or a confirmed grant like Countryside Stewardship topping up the numbers. Lenders will probe whichever you propose, so come with evidence, not intention.
Terms typically run 3 to 18 months. Interest is usually rolled up, meaning no monthly cash drain while you are completing the project. You repay principal and accrued interest at exit. As a broker we cannot set or promise a rate; the lender prices it against security, LTV, and exit strength. On agricultural bridging you are commonly looking at roughly 0.75% to 1.25% per month, but the offer you receive is the lender's alone.
Key Benefits
- Auction purchases of adjacent land often need completion within 28 days, and a bridge can move at that pace while an agricultural mortgage is arranged behind it
- Lenders on our panel will consider farmland, farm buildings, and rural property as first-charge security, including sites with active grazing or tenancy agreements
- Interest rolls up for the term, so you are not servicing monthly payments while a barn conversion is underway or a grant application is outstanding
- Barn-to-residential conversion is well understood by agricultural bridging lenders, and the gross development value, not just the agricultural value, can support a higher advance
- We can move from indicative terms to a formal lender offer quickly, which is often the difference between securing a parcel and watching it go to the next farm
Frequently Asked Questions
Will lenders accept farmland as security?
Yes, though the lender pool is narrower than for standard commercial property. Agricultural bridging lenders assess farmland on its agricultural value, then separately on any development or conversion potential. A bare field is a different proposition to a redundant barn with permitted development in place. We match you to lenders whose appetite fits your specific asset. Acceptance and terms are always the lender's decision.
Can I use a bridging loan to buy land at auction?
This is one of the most common uses we place. Auction completion is typically 28 days, and a standard mortgage cannot move that fast. Bridging can. You complete on the bridge, then refinance to an agricultural mortgage at a pace the long-term lender can work to. The exit has to be agreed with the lender before submission, not assumed.
Are DEFRA grants a viable exit strategy?
They can form part of one, but lenders will not accept a grant as the sole exit unless funds are confirmed and imminent. Countryside Stewardship payments, the Farming Equipment and Technology Fund, and similar schemes can support your position, particularly where the grant reduces the refinance amount needed. We have seen it work, and we have also seen lenders decline where the grant was still at application stage.
What LTV is available on agricultural property?
On straight agricultural land and buildings, many lenders work to around 60 to 65% LTV. Where there is clear conversion potential, such as a barn with permitted development for residential use, some lenders will lend against the gross development value instead, which can lift the advance. The gap between those two bases is material on larger parcels, so getting the valuation basis right at the outset matters. Final LTV is set by the lender on the individual case.
Can I bridge a barn conversion project?
Yes, we place barn conversion bridging regularly. The lender will want planning permission or permitted development confirmation, a build cost schedule, and a clear exit, usually sale or refinance to a buy-to-let or holiday let mortgage on the completed units. The loan typically covers the purchase or the existing property equity plus build costs in tranches, drawn down against build stage.
Bridging Loans calculator
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Monthly interest
£2,125
Total interest
£25,500
LTV
56%
Rolled-up cost
£25,500
Illustrative estimate only, not a quote or financial advice. A broker will confirm exact terms based on your circumstances and lender appetite.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.