Could we go from acceptance to completion in five working days?
We didn’t have to wait long. It was lunchtime on 2nd January when Down Hall Associates called to enquire about an urgent requirement for a VATBRIDGE loan to fund the VAT due on the purchase of a pub in Nottinghamshire being acquired and converted into a luxury wedding venue.
However, there was a slight complication: the purchasing company was under common ownership with the selling company and the seller had an existing bridging facility that expired in eight days meaning that time was very much of the essence.
The purchasing company had been discussing a bridging facility with a new lender since early December and was confident it would have funds advanced on expiry of the existing bridge.
We accepted the challenge.
By close of play on day one, we had generated VATBRIDGE and VATBRIDGE+ loan illustrations and offer letters.
Day two began with a telephone conversation with the borrower. With funds tight and an advance of the full VAT due, the borrower decided on the VATBRIDGE+ route.
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Thankfully, the borrower was incredibly organised and by mid-afternoon, we had received a signed offer letter, the commitment fee, KYC information and a copy of the valuation. By the end of the afternoon, VATBRIDGE had registered online as the borrower’s VAT agent.
Day three saw the client bank account opened, our lawyers Royds Withy King instructed and the standard enquiries and agreements sent to the borrower’s solicitor.
On day four we were on the road at 5.30am to meet the borrower and visit the property. Lawyers agreed the intercreditor deed.
Day five dawned and we were going to make it. By the end of the afternoon, the loan agreements were signed, funds were in place and the borrower was ready to complete. But wait a minute, the primary lender wasn’t ready. That complication with the seller and the buyer being under common ownership had reared its head at the last moment.
Despite not actually completing, we were proud to have turned this deal round in such a short space of time and delivered on what we had promised.
By way of an update, one month on and the borrower is now working with a new bridging lender. We are still ready and, yes you guessed it, we are hoping to complete the loan in the next five days.
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