Masthaven completes urgent bridging loan within six days

Masthaven has provided a £375,712 bridging loan for a client who faced significant penalties from the HMRC.

The client had sold land to a developer triggering a capital gains tax (CGT) liability of over £300,000.

However, they argued that as the land formed part of the garden in their former main residence, they should not have been liable to any CGT.

After the disagreement with HMRC and tax investigation, the client was issued with a demand for payment with a tight deadline.

Furthermore, failure to pay the tax would result in an additional 20% penalty.

The client sought out Kit Thompson, director of short-term and development finance at Brightstar, who in turn approached Masthaven.

Kit said: “We believe borrowers who need access to short-term loans shouldn’t have to jump through time-consuming hoops to gain access to the funds they need.

“In this case, we had to be conscious of timings as our client faced significant fines.

“With Masthaven’s support, we were able to ensure we helped our client access the funding they needed.”

The gross loan was £375,712.03 and the maximum facility was £378,868.99 – based on the security property being valued at £1m with an LTV of 37.89%.

James Bloom, managing director of short-term lending at Masthaven (pictured above), said: “When Brightstar came to us and explained the customer’s story, we knew timing was essential.

“We noted the urgency of the case and made sure we could help by delivering full funding in six days.

“As an industry, it is crucial we work together to get a thorough understanding of every customer’s story.

“Only then can we offer the best products suited to their individual needs.

“We look forward to working with the Brightstar team and continuing to deliver great results for our customers.”

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