MP’s have finally managed to make a decision of note and not one of detail.
In the first December election since 1923, when, interestingly, Labour led by Ramsay McDonald lost in terms of the number of seats won but went on to form the first ever Labour government), the voting public will put in place Members of Parliament and a new Government.
With the Fixed-Term Parliament Act the likelihood is that the new government will serve for a busy, important and transformative 5 years.
Election in the case of a commercial property is a 20 year commitment and is essentially irrevocable. Not very democratic you may say, but nevertheless something that needs to be dealt with, and more notably today than historically, at the point of sale.
At the point of sale, the sale price of VAT elected properties is determined by many factors including the physical intrinsics, market outlook and availability of leverage. The short term funding requirement for 20% of VAT on a transaction necessarily has its effect on value as well as sale price.
Bloomsmith see the outcome of elections generally as outcomes that just need to be dealt with.
As a principal lender of VAT, we have an answer to the 20% VAT payable on commercial property election with our ability to provide 100% of the VAT required at the point of purchase, within 3 days and without a charge being taken on the property. We may not however be able to provide such certainty around an answer to the December General Election…..