The team at Adsum, the UK’s largest specialist VAT & Tax receivables lender, is pleased to announce the successful funding and completion of a £6 million VAT loan.
A central London super-prime, 5-unit development site in SW7 near Harrods, was purchased for £30 million by overseas investors to develop into luxury townhouses. However, the development site had been “opted to tax” by the previous owner, which meant that an additional 20% of the purchase price had to be paid upon completion. With the senior debt being provided by a major international bank, a reliable solution to fund the VAT had to be found.
The deal, introduced to Adsum by Tom Rowlands, Head of Specialist Property Finance at Pure Property Finance, had several complications to overcome and a time-critical completion date to hit.
Tom, of Pure Property Finance added: “The team, and tech set up, Adsum have in place meant we were able to complete within the tight deadline and most importantly, their commercial approach meant we were able to overcome a number of challenging hurdles.”
Head of Origination at Adsum, Mike Underwood commented: “Having been providing VAT loans for commercial property purchases since 2018, I am fairly confident in saying that this is probably the largest single VAT transaction requiring funding that has taken place outside of specialist funds and family offices. I am proud of my team and pleased with the way we rose to the challenge to be able provide a reliable source of a VAT loan, while using our proprietary technology to give great communication between us, the client and the team at Pure Property Finance”.
Adsum is a Specialist UK Tax Receivables Lender. We are the only VAT lender that handles all reclaims ranging from vehicles, computer hardware, stock, inventory, plant, machinery, land and property. We also provide loans secured against R&D Tax Credits and Creative Industries Tax Credits. At Adsum, we pride ourselves on providing a fast, friendly and professional service with fully managed VAT bridging products and drawdown loans starting from £30,000 with no upper limit. We are also the only UK lender to have an in-house VAT expert. We invest heavily in our people and technology; this underpins our fully tech-enabled platform, allowing us to process loans quicker. Due to this technology, we can offer market- leading rates for all of our customers.