.jpg)
Getting your client’s commercial mortgage application approved by a credit committee can prove challenging as lenders' processes and criteria are often vastly different and gathering the information requested can seem overwhelming.
Talking us through the best way to get your commercial application approved, Rob Lankey Managing Director at Aldermore Commercial Mortgages gives us his top ten tips…
Tip 7: How is the VAT going to be paid?
If the property is VAT registered, the amount of VAT payable on a transaction can make stamp duty pale into insignificance. On larger loans the sums can be considerable and lenders will want to know where the money is coming from to pay the VAT bill.
This is a basic anti-money laundering issue; lenders have to demonstrate that the money being used for deposits and to pay VAT bills is coming from legitimate sources. This is one of those issues that, if left to the last moment, can hold up deals and prevent them from completing on time, so it’s best to sort it out sooner rather than later.
Leave a comment