This Summer, we are sharing real examples of how we have transformed the financial outcomes for clients facing a wide range of different challenges.
Read on to discover how we refinanced a challenging property transaction to secure the future of a nursery managing complex loan and tax requirements, securing their future.
What problem was the client facing?
A children’s nursery business needed to refinance a commercial property held in the owner’s father’s name. The transaction had to clear the existing property loan, provide sufficient funds to meet the resulting Capital Gains Tax liability and be completed at an agreed below-market valuation as part of an approved tax-planning arrangement.
With tax, legal, property and lending considerations all intersecting, this was far from a straightforward commercial mortgage application.
What had they tried themselves?
The client was already working with several professional advisers, including accountants, tax accountants, solicitors and tax lawyers. However, the number of parties involved plus the need to satisfy both the lender’s requirements and the agreed transaction structure, made the funding element particularly complex.
What solution did we find?
We identified a suitable commercial mortgage and worked with the lender and the client’s wider professional team to structure the transaction correctly.
The mortgage cleared the existing borrowing and released enough capital to meet the anticipated tax liability. We also helped coordinate the valuation requirements, ensuring the transaction could proceed using the agreed initial valuation while accommodating the subsequent valuation needed at completion.
What changed for the client?
The client secured the funding required to complete a complicated property transaction through an HMRC-compliant structure and manage the associated tax burden.
Our ability to work through the complexity and coordinate with multiple professional advisers helped bring the transaction to a successful conclusion. The client achieved the outcome they needed and was very pleased with our support.
Pegasus Funding Solutions can help you review your financial options, explore funding solutions and prepare for growth. For a confidential conversation, call 0203 327 0567 or request a callback at www.pegasusfunding.co.uk/contact.