It’s all about cash flow
The VAT liable on a property purchase is a major consideration for purchasers. Mortgage banks do not normally offer loans over 60% LTV which means that 40% in equity is required, as well as standard acquisition costs ranging from between 5 – 7%.
On top of these outlays, the purchaser has to provide a further 20% for the VAT, payable on completion. This additional, sometimes overlooked, cost can pose a significant problem – which jeopardises the deal.
Although the VAT is later recovered from HMRC, reclaiming the money can take up to three or four months, devastating cash flow for the buyer.
Accreditations & Affiliations
Bloomsmith is proud to be a patron on the National Association of Commercial Finance Brokers – authorised and regulated by the Financial Conduct Authority.
Bloomsmith is proud to be working with Buckle Barton.
“… the most reliable VAT lender in the market”
Ludo Mackenzie – Head of Commercial Property, Octopus Property