£500,000 bridging loan secured to repay tax bill

Navigating the complexities of securing finance for unique challenges, such as tax liabilities, is where Diamond Property Finance excels. When a recent client faced the urgent need to repay a significant tax bill abroad, they turned to us for a swift and strategic solution.

Case Profile:

The client, needing £500,000 to settle a tax bill incurred from selling a property in Germany, presented a unique challenge given the purpose of the loan and the requirement to transfer funds overseas. With a strict deadline of 28 days to arrange the finances, the pressure was on. As security for the loan, the client offered two valuable assets: a terraced house in Windsor worth £1 million and a bungalow in Reading valued at £650,000.

Solution:

Our approach involved identifying lenders open to the idea of funding a tax obligation and comfortable with the international aspect of the transaction. To expedite the valuation process and meet the tight time frame, we opted for lenders that could employ an Automated Valuation Model (AVM), which would avoid the delays typical of traditional property assessments.

We successfully negotiated with a bridging lender who approved the use of AVMs for both properties, eliminating additional valuation fees for the client. By leveraging our strong partnerships and coordinating closely with our preferred legal team, we ensured a smooth process and stayed closely connected to the deal at every step. This proactive management helped us secure the necessary £500,000 for a six-month term, with a refinancing strategy planned for the loan’s maturity.

The client was able to repay the German tax authorities on time, avoiding penalties and solidifying their trust in our ability to deliver prompt and effective financial solutions.