What is the one document that holds everything up?

The VAT registration certificate for the buying entity. Without registration there is no reclaim and therefore no exit, so most lenders will not issue terms until it exists.

Can I apply before the VAT registration is issued?

You can start the conversation and get indicative terms, which is sensible. But drawdown will normally require the registration to be in place, so apply early and chase HMRC in parallel.

Do I need a valuation?

Often not, where the facility is secured on the HMRC recovery rather than the property. Where a charge over the property is taken, a valuation may be required — ask early, because it affects the timeline.

What if the completion date moves?

Tell the lender immediately. Facilities are sized and priced around a drawdown date and an expected reclaim period, and a moved completion can change both the term and the cost.

VAT bridging finance

VAT Bridging Loan Application Checklist

PropertyVAT Team · Updated 21 October 2026 · 3 min read

Most VAT facilities that take a long time do so because the pack arrived in pieces. Assembled in one go, the lender's work is genuinely quick.

The core pack

The transaction

Purchase contract, or auction legal pack, showing the VAT position
Special conditions confirming VAT is payable
Purchase price and the VAT amount
Agreed completion date
Seller's solicitor details

The buyer

Buying entity name and company number
VAT registration number and certificate
Director and beneficial ownership details
Identification documents for the standard checks
Recent VAT returns, where a filing history exists

The VAT position

Option to tax notification, where one applies
HMRC acknowledgement of that option
Confirmation of intended use of the property, for recovery purposes
Where a TOGC was considered, confirmation of why it does not apply

The funding picture

Details of the senior facility, if any
Whether the senior lender will consent to a second charge
Source of the deposit and the balance of completion funds
Your solicitor's details

What each item is actually for

It helps to know why a lender asks, because it tells you which gaps are fatal and which are cosmetic.

Item	What it proves
Contract showing VAT	That the liability is real and quantified
VAT registration	That a reclaim can be made at all — the exit
Option to tax	That the VAT position is as described
Intended use	That the VAT is actually recoverable
Completion date	When the facility draws, and how long it runs
Filing history	How quickly HMRC is likely to repay

Registration is the one that stops a case dead. Everything else can usually be chased in parallel.

Sequence it properly

Week the deal is agreed — incorporate the entity if needed; start VAT registration.
Pre-contract — solicitor confirms the VAT position in writing; notify any option to tax.
On receipt of the registration number — submit the full pack and request terms.
On terms issued — accept, complete the lender's checks, confirm the completion date.
Completion — draw the facility; obtain the seller's VAT invoice on the day.
Quarter end — file the return with the evidence pack ready.

That last step is worth planning for now rather than later. A reclaim that stalls because nobody chased the VAT invoice costs real interest.

Common gaps

Registration applied for, not issued. Start it earlier than feels necessary.
An option to tax notified but not acknowledged. Submit what you have and flag it.
No confirmation of intended use. If the property will be used for exempt purposes, recovery may be restricted, and the lender needs to know before terms.
Senior lender not told. If a second charge is needed, consent takes time.
An optimistic completion date. Sizing a facility against a date that will slip means extending later.

Before you send it

Three questions. If you can answer all three with a document rather than an assertion, the case is ready:

Can you evidence that VAT is payable?
Can you evidence that the buyer is VAT registered?
Can you evidence that the VAT is recoverable?

This guide is general information, not financial advice. Requirements vary by lender — confirm what is needed for your transaction.

Frequently asked questions

What is the one document that holds everything up?: The VAT registration certificate for the buying entity. Without registration there is no reclaim and therefore no exit, so most lenders will not issue terms until it exists.
Can I apply before the VAT registration is issued?: You can start the conversation and get indicative terms, which is sensible. But drawdown will normally require the registration to be in place, so apply early and chase HMRC in parallel.
Do I need a valuation?: Often not, where the facility is secured on the HMRC recovery rather than the property. Where a charge over the property is taken, a valuation may be required — ask early, because it affects the timeline.
What if the completion date moves?: Tell the lender immediately. Facilities are sized and priced around a drawdown date and an expected reclaim period, and a moved completion can change both the term and the cost.

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