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%