Property: Essington Cemetery, Wolverhampton

Purchase price: £2,200,000

VAT facility: £441,000

Loan term: 90 days

Transaction date: 5th September 2024

BloomSmith has recently delivered a £441,000 VAT bridging loan to facilitate the acquisition of a Wolverhampton cemetery.

The £2.2m purchase of the beautiful Essington Cemetery was made after the previous owner of the cemetery fell into insolvency, with the administrators opting to charge VAT on the property sale.

Speaking on the acquisition, Frederick Bristol, representing the new owners of the cemetery, said: “We are delighted to have completed this purchase following an extended period of uncertainty for the local community after the cemetery’s previous owner entered administration. We are also grateful to the administrators, Resolve, for the way that the transaction was conducted.

“Our team will be calling upon an extended team of professionals, all of whom bring a wealth of knowledge to deliver earnest and dignified burial services and we are looking forward to meeting the needs of the people of Essington.”

“The loan from BloomSmith means we can focus our capital on where it can best serve the business that will provide this service.”

BloomSmith’s 90-day loan enabled the new buyer to mitigate the opportunity costs and short-term cash flow challenges that a VAT payment can represent.

Nigel Smith, BloomSmith CEO, said: “This loan is a prime example of how our facility can enable borrowers to buy assets through administrators, and of course how we can assist Administrators with their disposals, without a transaction being impacted by the intertia that a six-figure VAT payment can create.”

If you’re interested in taking out a VAT bridging loan then you can speak to our team, check your eligibility or calculate your borrowing costs today.