TL;DR – Submit a light-touch Prior Approval (PA) or Lawful Development Certificate (LDC) first, secure the principle of change of use, then follow with a finely tuned Full or Reserved-Matters application. You lock in uplift, cut holding costs, and keep lenders happy—while still having an exit if the second stage stalls.

1  |  Why “all-in-one” applications are losing favour

• London borough approval rates for single, full-scale schemes have fallen from 73 % in 2018 to 59 % in 2023 (GLA Planning Data Hub).
• Design-panel reviews, environmental objections and borough-level “specialist” consultees add six-plus months to determination periods.
• Holding an unconsented site costs on average £14 psf per month in debt and opportunity cost (Equinox Estates finance tracker, Q1 2024).

2  |  The two-step method in a nutshell

StageApplication typeWhat you lock inTypical timeRisk level1Prior Approval, LDC or OutlinePrinciple of change‐of‐use, maximum envelope, or existing use rights8–12 weeksLow2Full / Reserved MattersElevations, unit mix, materials, landscaping12–30 weeksMedium

Winning insight – Under the Town and Country Planning (General Permitted Development) Order 2015, a successful PA/LDC crystallises existing‐use value + hope value, letting you refinance or sell on with a 10–18 % uplift even if Stage 2 drags.

3  |  Approval-rate maths

• PA/LDC first, then full: 82 % combined success rate in inner-London boroughs (2021-23 sample, 412 schemes, Equinox analysis).
• Single full application: 58 % success in the same boroughs and period.
• Value at risk saved: On a £12 m site, staging cuts potential sunk costs by c. £1.4 m.

4  |  Live case study – 167-173 Hackney Road, E2

• Asset: 10,500 sq ft light-industrial warehouse.
• Stage 1 (Jan 2023): Class MA Prior Approval to convert to 22 micro-apartments—granted in 9 weeks.
• Re-valuation: £5.3 m → £6.6 m; lender LTC rose from 55 % to 65 %.
• Stage 2 (Sept 2023): Full application adding a recessed fourth storey + communal roof garden. Still in consultation—but interest-cover met and exit sale agreed subject to Stage 2.

5  |  Step-by-step playbook

1. Site diligence – Flood zone, contamination, article 4 direction checks.
2. Pick the right “anchor” class – MA for commercial→residential; GPD 2021 Part 20 for rooftop additions; LDC for confirming historic lawful use.
3. Pre-app whisper test – 15-minute “desk-top” chat with duty officer; no site plan, just parameters.
4. Submit Stage 1 – Include daylight & transport notes only if needed.
5. Lock in uplift – Secure revised valuation, refinance, or market off-plan.
6. Design charrette – Engage panel, neighbours, and heritage officers after Stage 1 win.
7. Submit Stage 2 – Lean on goodwill (“principle already accepted”), negotiate S106 in parallel.
8. Exit or build – If Stage 2 falters, you can still convert under Stage 1 consent.

6  |  Pitfalls to avoid

• Sequence slip – Starting works between Stage 1 and Stage 2 can void your fallback rights.
• Five-year rule – PA consents lapse after 3 years and must be completed within that window. Build-cost inflation can erode margins.
• Design creep – Exceeding the envelope (height, GIA) granted in Stage 1 resets the clock.

7  |  How Equinox Estates adds edge

• Off-market pipeline – Probate, receivership and corporate disposals where staged consents unlock instant margin.
• Planning arbitrage modelling – Live database of 6,000 London determinations to forecast odds borough-by-borough.
• Capital stack advice – Bridge-to-development loans that release equity after Stage 1, reducing mezz costs by up to 4 %.
• Buyer matchmaking – GCC and US dollar-pegged investors seeking partially consented sites as a currency hedge.

Conclusion

Submitting a lean, first-stage planning application isn’t gaming the system—it’s working with it. Developers who master this sequencing crystallise value faster, shield downside, and keep lenders onside. In a market where time is literally money, the two-step strategy is fast becoming the London developer’s secret weapon.

Need borough-specific odds or an off-market site that fits this play? Talk to Equinox Estates’ strategic advisory desk today.

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