Auction property VAT funding

Funding VAT for commercial properties bought at auction

VAT loans for auction properties

Auctioned commercial property VAT funding

We will fund the VAT for your commercial property auction purchase within 48 hours of legals connecting with our bespoke VAT bridging loans.

If you have won an auction and are yet to complete, or are looking to purchase a commercial property via auction, then you may find yourself with the unwanted headache of a VAT payment.

You will likely also have discovered that your senior lender is unwilling to provide additional funds against your VAT.

Fortunately, as the leading providers of unsecured VAT bridging loans, we can provide a bespoke, fast solution to help cover this funding gap without impacting your existing mortgage debt.

Our loans are an effective way of ensuring you can maintain your cash flow during the purchase process, while avoiding opportunity costs that might arise from your money being held by HMRC for 90 to 120-days.

Cover your VAT obligations from as little as 1.1% of your property purchase price.

Have any questions? Speak to our team today or discover some simple guidance on our auctioned property VAT bridging loans below.

Is my auction property eligible for a VAT loan?

We provide VAT loans against auction properties.

The parameters that define if VAT is payable will be a matter for the vendors and will be noted in the catalogue.

If it is elected for VAT, we require just six key pieces of information to transact a loan:

The property address
The property purchase price
The VAT chargeable on the purchase
Confirmation that it is an empty commercial property (or land) that has been elected for VAT or is being charged
The newly formed SPV’s name (which is set up outside of a group structure)
The completion date

If you do not have a readily available Special Purchase Vehicle, we can provide off-the-shelf SPVs.

Once this information has been provided, we can get to work delivering your funding.

Can you provide me a loan in principle ahead of the auction?

If your property meets the above eligibility criteria then we can provide a loan in principle for your auction purchase. This gives you extra reach in terms of your equity and peace of mind in the room.

Contact our team today to discuss the property you hope to buy or complete our eligibility checker.

We will work with you to structure the options available for your specific circumstances.

What if my auction property is occupied?

If your new premises are occupied by a business, then it is almost certainly a transfer of a business as a going concern (often referred to as ‘TOGC’).

In such an instance, you will not have to pay VAT on the property you are purchasing. If there is an unoccupied element to the property, however, this may attract a VAT payment.

If you are not certain about whether VAT is applicable on your property then our VAT experts are happy to advise, please get in touch today.

Our VAT loans

Discover our six-step process for providing you with VAT funding. As specialist lenders, we streamline the VAT funding experience.

Understanding VAT

Getting to grips with VAT can be a minefield for the uninitiated, especially when it comes to property. Let us help you with our handy guide.

About BloomSmith

We are audited quarterly and we also work with the likes of Shawbrook Bank, making us the UK’s most trusted VAT lenders.