Receiving planning permission is a major milestone for any property developer. It can turn a speculative opportunity into a credible development project, strengthen the site's value and provide the basis for securing construction finance.

But there is an important distinction between having permission to build and being ready to start building. A consented site can still be months away from a lawful, fundable construction start if the conditions, legal rights and infrastructure have not been dealt with.

Understanding that gap before exchanging contracts or committing to a contractor can save a considerable amount of time and money.

Start with the conditions, not the headline decision

A planning decision notice can contain conditions that must be satisfied at different stages. Some apply before any development begins. Others apply before works rise above slab level, before occupation or before a particular part of the scheme can be brought into use.

These are not all administrative formalities. A condition might require an approved drainage design, contamination assessment, Construction Management Plan, landscaping specification or confirmation of external materials.

A developer should prepare a condition tracker that identifies the exact wording, the party responsible for the submission, the approving authority, the evidence required and the point in the programme when compliance becomes necessary.

Crucially, submitting an application to discharge a condition is not the same as receiving written approval. Planning consultants should advise on what works, if any, can lawfully begin before the outstanding matter is resolved.

Check when the permission expires

Planning permissions usually include a deadline for commencement. A site purchased close to that deadline may look attractive, but successfully starting works requires more than simply arranging for a digger to arrive.

Any commencement must be lawful and sufficient to implement the particular permission. Developers should obtain professional advice on the conditions and material operations involved, then keep documentary evidence of the works and dates.

This is especially important when a short-term acquisition loan is expected to be repaid by a longer-term development facility. If the planning permission lapses, the site's value and refinancing options could be very different.

Section 106 and CIL can change the day-one budget

Planning obligations can create significant costs beyond the contractor's quotation. A Section 106 agreement might require financial contributions, highway improvements or other site-specific commitments. Community Infrastructure Levy (CIL), where applicable, has its own liability, notice and payment procedures.

The timing matters just as much as the total. A payment triggered on commencement or before occupation is a cash requirement that should appear in the development appraisal and cashflow.

Before acquisition, establish what has been paid by the seller, which obligations remain outstanding, whether any sums are indexed and who will carry the liability after completion. For CIL, the required notices and any relief applications need particular attention before starting works.

Legal access is different from physical access

A site can have a perfectly usable driveway and still have an access problem from a lender's perspective.

Developers need to establish that the title provides the rights required for construction traffic, deliveries, utility connections and eventual residential occupation. Temporary permission from a neighbouring owner is not necessarily a substitute for enduring rights that future purchasers and mortgage lenders can rely upon.

Other issues may include restrictive covenants, third-party rights over service pipes, party-wall arrangements or an adjoining owner's right to enter land for maintenance.

These matters should be reviewed by a solicitor early, ideally before the acquisition becomes unconditional.

The technical programme must work too

Planning approval does not guarantee that utilities will be connected on the desired date or that an access road is ready for heavy vehicles. Drainage adoption, electricity capacity, water connections and highways agreements can all influence the critical path.

Equally, Building Regulations approval, warranty requirements and the structural design process need to align with the build programme. The lender's monitoring surveyor will want confidence that the project can be delivered to the proposed budget and timetable.

A useful pre-start question is: If we completed the purchase tomorrow, what would actually prevent us from starting and progressing the works?

Why it matters to development finance

A development lender is funding an achievable construction and exit strategy, not simply a planning decision. Unresolved conditions, legal access difficulties and unpaid obligations can affect the starting date, cost to complete and ultimate sales value.

At Onyx, we assess each development on its own merits, including planning, security, construction budget and the proposed repayment route. Addressing the practical issues before applying for funding helps everyone establish a realistic programme.

Final thoughts

Planning consent is the beginning of the delivery phase, not the end of due diligence. Developers who treat conditions, legal rights and infrastructure as part of their acquisition assessment are more likely to start confidently and avoid expensive surprises.

If you're acquiring a site with planning permission and want to explore a development finance structure, speak to the Onyx team early. The strongest funding proposals are those where the practical route from permission to completion is already clear.