Together saves client £600k tax with fast bridging completion

By Bridging Loan Directory 18th June 2024

Property lender Together has provided a £6.6 million bridging loan to help a client purchase a buy-to-let property portfolio – saving the client hundreds of thousands of pounds in tax.

The customers, both company directors, were looking to purchase the portfolio of 45 two and three bed terraced properties in North Manchester and Stockport for £7.7 million, but had a tight deadline to meet.

A change in the law led to the scrapping of stamp duty for multiple dwellings on June 1, so the clients only had a few days to complete to take advantage of the tax break.

They would have had to pay about £600,000 in stamp duty had they missed the deadline.

The borrowers were introduced to Together by The UK Adviser on May 28, allowing expert underwriters at Together to fully review the case in just four days to ensure the customers could complete on time.

Thanks to Together’s automatic valuation model (AVM), the case was quickly assessed and Together agreed to provide the 12-month bridging loan, finalising the deal on May 31 – within the clients’ timescale.

Gemma Roberts, Intermediary Sales Manager at Together said:

“The customers came to us with a very tight deadline to complete their property portfolio purchase.

Not meeting the deadline of June 1 would have cost the borrowers hundreds of thousands of pounds because of the changes to tax rules, so we needed to work quickly to fund the bridging facility.

It’s in situations like this when bridging finance comes into its own, and Together’s expertise in short-term finance is invaluable.

Our underwriters were able to complete the deal within just a few days, thanks to a remote valuation of the entire portfolio of 45 properties, using our AVM model.

As we strive to meet our goal of becoming the UK’s most valued lender and provide the best possible service, this is a perfect example of how Together can support customers to achieve their property ambitions.”

Maxim Cohen, chief executive of The UK Adviser, said:

“With incredible teamwork, Together managed to fund an urgent bridging loan on 45 properties within five days (including a bank holiday).

We are very fortunate to be able to work closely with such fantastic lenders – allowing our clients to access the funding they require to meet their property ambitions.”