BloomSmith Ltd Information

It's all about cashflow. The VAT on a property purchase is a major additional equity requirement, as mortgage banks are no longer offering loans above 60% LTV (in most cases). In addition to 40% of the purchase price in equity, and 60% from a lender, finding another 20% for VAT, which takes three months to come back from HMRC, can be a significant problem. This devastates cash flow for property buyers, and has a heavy impact on other business activities and decisions. BloomSmith is ready to help. BloomSmith History.... BloomSmith was created to provide a financing solution to meet VAT payment needs relating to land and property transactions. A considerable number of land and property sales are subject to the standard rate of VAT at 20%. Without VAT funding, the cash required for a purchase, with a typical mortgage in place is 49% greater than with VAT funding provided by BloomSmith. Banks today have much stricter lending rules and limits than before 2009. The loan to value ratio (LTV) limitations restrict banks from being able to extend any loan that also covered the VAT, as the additional 20% significantly alters the risk limits beyond their maximum level. This is the problem for property purchases. This is the space in which BloomSmith operates; we provide VAT funding to purchasers.