In our ongoing work to provide VAT bridging loans to those purchasing large areas of land or property, we recently approved an application that would allow the redevelopment of 1.2 acres of land as part of a larger 600-acre redevelopment of a former RAF base in the Midlands.
The land in question had valid planning consent for a substantial residential site development. Despite this, though, it currently stood empty and was unoccupied, even though the planning permission had been granted in 2017. Everyone involved was therefore eager to revitalise this former RAF base into a usable development, beneficial to the surrounding area and contributing to the overall economic prosperity.
BloomSmith were approached for a loan of 20% of the full purchase value in order to cover the commercial VAT on the land, which amounted to over £200,000. The client had already secured financial backing for the purchase and development of the land so was seeking the final VAT loan to complete the transaction and move forward with the residential development that had been approved the previous December.
We were presented with a professionally considered portfolio for this demonstrably profitable development venture. Our client had also secured an initial construction report detailing the scale of the construction costings and plan, which meant that all parties could be fully aware of all that was going to be involved in the redevelopment. We agreed to provide the requested VAT bridging loan amount to our client, allowing the commercial land purchase to go ahead and the subsequent redevelopment to begin.
If you require VAT funding for your next commercial property or land purchase, don’t hesitate to contact BloomSmith to discuss what VAT bridging loan options we can provide you, to ensure your plans move forward smoothly. You can reach us on 020 3488 3411.