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Full site plus VAT loan

An experienced family building company wished to purchase a site which had detailed planning consent for the development of eight terraced houses.

As the site was formerly a public house, VAT was payable on the purchase. We were able to provide an initial advance of £694k towards the purchase, stamp duty and other fees. This represented 77% of the purchase price site value. In addition, a short term facility was provided to fully fund the VAT payment of £157k pending its repayment. The customer provided an informal charge over another asset to mitigate some of the risk of the VAT loan. In addition, we provided 100% of development finance.

Loan: £1.4 million
Loan to Value: 60%

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We are also a member of the Financial Services Compensation Scheme (FSCS) and are covered by the Financial Ombudsman Service.