This month new Government legislation has been issued, effective 1st September 2021, enforcing significant change to the use classifications for commercial property and land.
Classes A1, A3, B1 and D2 will be discontinued and replaced with a new use Class E ‘Commercial Business and Service’. This allows for switching between operations within the same use class and will not require planning permission. For example, office to gym, retail to restaurant will be possible without the need for planning permission. We understand that additional permitted development rights legislation is also emerging with the intention of revitalising town centres and development demand.
Similarly, if you entered a conditional contract to purchase a building or land and have recently received planning you may have further options available to you as a result of the new Government legislation around the use classifications.
We envisage that this will significantly improve transaction speed as the UK emerges from the pandemic and lockdown.
We are certain that with the greater fluidity around planning classification leading to a larger number of transactions taking place, funding liquidity and equity availability will be key.
With VAT at 20% on top of the purchase price, in a climate when funding is challenging, loan to value’s are under pressure and second charges unpopular you will need BloomSmith to assist.
BloomSmith lend all the VAT that is required on elected property transactions without the need to take a legal charge on the property.
BloomSmith work with developers, brokers, agents, senior lenders, architects, planning consultants and insolvency practitioners to provide 100% of the VAT required for your project to transact and come to life. We can provide funding within 48 hours and recognise all introductions.
The graphic on this article demonstrates the added liquidity BloomSmith provide, enabling the purchase of a £3m property as opposed to a £2m property, given the same equity input.
If you would like to understand more or discuss your transaction, simply email with the best time for our Sales Director kate@bloomsmith.co.uk to call.
Please feel free to take a look around our website in the meantime https://bloomsmith.co.uk
