One of BloomSmith’s largest VAT bridging loan to date occurred in our very own city: London. The prospective buyers came to us with a wealth of property experience, considerable professional backing, an expert team and a concrete resale opportunity. They requested 20% of the full purchase price in order to cover the VAT on the purchase, which amounted to a VAT bridging loan of £1,400,000.
The prospective buyers were looking to purchase a large, levelled plot of land in London that was currently not being used. Although planning permission had been obtained for this land to be utilised in the past, this planning permission had since lapsed. However, it was clear from the buyers’ talks with local authorities that new planning permission would eagerly be granted, lest the land continue to go to waste. The land was also valued at more than the listed price for our client, meaning they would be able to secure a large plot of land in London for under market value by £1,000,000 – an opportunity not to be missed.
In addition to the pre-emptive favour from the local authority for planning permission, our clients had also secured someone who was keen to subsequently purchase the land from them, once planning permission was granted. This meant that our client would quickly make 100% profit on the purchase, with this second buyer already identified and confirmed.
Although our client’s initial property development and investment experience originated in Birmingham, BloomSmith were proud to assist them in this exemplary financial investment in London. BloomSmith happily agreed to provide the VAT bridging loan to the full amount requested of £1,400,000. This allowed our client to complete the commercial property purchase for 0.5 acres of land in London, a brilliant investment with a clear ROI already identified.
If you’re looking to invest in commercial property, don’t hesitate to discuss a VAT bridging loan with BloomSmith. Opening up your investment potential and opportunities with a VAT bridging loan means you can take advantage of fantastic opportunities just like our London clients; talk to our experts today on 020 3488 3411 to find out more.