Specialist lender Cambridge & Counties Bank has launched a new Value-Added Tax (VAT) loan product for real estate investors and business owners buying commercial property assets.
The product allows investors and owners to spread up to 100% of the VAT payable on the acquisition of commercial property assets over five months, alleviating what can be a significant cost and cashflow problem.
The product is only available in conjunction with a new Cambridge & Counties Bank Commercial loan and to customers who are VAT registered.
The bank’s commercial loans are available for up to 70% LTV of the open market value on an asset. With an additional VAT loan providing up to 20%, customers could borrow a combined maximum 90% LTV inclusive of all fees.
The new VAT loan underscores Cambridge & Counties Bank focus on product innovation and providing cost-effective, practical lending solutions for commercial property owners.
The bank has continued to see strong demand for its real estate lending solutions and expects demand to continue in 2022. It saw a 47% rise in gross new lending in 2021 to a record of £323 million as it helped SMEs, entrepreneurs and real estate professionals capitalise on investment and growth opportunities in the UK.
Simon Lindley, Chief Development Officer at Cambridge & Counties Bank said:
“Cambridge & Counties Bank is one of a very few institutions to offer such a product and we think ours is the most competitive in the market. Property values and transaction costs remain high and, in talking to borrowers as well as the brokers that serve them, we are very aware of their need for dedicated support. We’re delighted to be expanding our support with this new VAT loan service.”
Simon Lindley, Chief Development Officer at Cambridge & Counties Bank said:
“The flexibility of our new VAT loan takes the pressure off cash reserves and cashflow, allowing buyers to retain working capital to fund other important business areas. As an alternative funding line, it smooths cash flow peaks and troughs without using up existing funds.“