Bridging Vat completes £850,000 VAT loan for Birmingham development site
Specialist VAT lender, Bridging Vat has completed an £850,000 VAT loan on the purchase of a Birmingham development site.
The 0.95 acre former retail site will be demolished and redeveloped to provide 164 one, two and three bedroom residential units in a prestigious eleven story development.
Alan Smith, the founder and managing director of Bridging Vat, said “We are delighted to have funded the VAT on this transaction, our second for this developer. We provided a second charge loan behind a 78% LTV first lender facility.
“The transaction was relatively straightforward, the only complication being the borrower’s SPV was part of a Vat group structure, normally a redline for VAT lenders.
“There was not time to remove the borrower’s SPV from the Vat group before completion, but our funding was flexible enough to allow us to advance the loan once we were satisfied there was no risk of HMRC offsetting the recovery.”
Bridging Vat was advised on this transaction by Morton Fraser.
Smith added: “As a developer, broker or lender if you or your clients need help to fund the VAT due on commercial property transactions then come and talk to the experts at Bridging Vat.”