VAT bridging finance

How Fast Can VAT Funding Complete?

PropertyVAT Team · Updated · 2 min read

The honest version of the 48-hour answer: yes, but it measures the part of the process that was never the bottleneck.

What the 48 hours actually covers

It covers the lender's process — assessing the reclaim, issuing terms, completing their checks, and releasing funds to your solicitor.

It does not cover:

  • Getting the buying entity VAT registered
  • Notifying an option to tax and waiting for HMRC acknowledgement
  • Your solicitor establishing the VAT position from the contract
  • Resolving whether the sale is a TOGC

Those steps run on HMRC's timetable and your advisers' timetable. They are measured in weeks, and no lender can shorten them.

The realistic timeline

Stage Typical duration Can it be accelerated?
Confirming the VAT position from the contract Days Yes — ask early
VAT registration for the buying entity Weeks Not meaningfully
Option to tax notification and acknowledgement Weeks Not meaningfully
Lender assessment and terms 24–48 hours Yes
Drawdown at completion Same day Yes

Read that table as a warning about sequencing rather than a promise about speed. Two of the five stages dominate, and both are outside anyone's control but HMRC's.

How to actually get to 48 hours

Work backwards from completion and front-load everything that is slow:

  1. Register the buying entity for VAT the week the deal is agreed. Not when completion is scheduled. This is the step that decides whether fast funding is even possible.
  2. Get the VAT position in writing from your solicitor, from the contract or legal pack — not from the agent's particulars.
  3. Notify any option to tax immediately if your position depends on one.
  4. Agree funding in principle early, so the lender's work is done before you need the money.
  5. Keep the pack current. Contract, VAT number, option to tax acknowledgement, solicitor details, completion date.

Done in that order, the final 48 hours is genuinely just a drawdown.

The auction case

Auctions make this sharper, because the completion window is fixed and the deposit is at risk. The sequence has to start before you bid:

  • Legal pack reviewed, VAT position confirmed — before bidding
  • VAT registration under way — before bidding
  • Funding agreed in principle — before bidding

A buyer who wins at auction and only then starts VAT registration has a problem that no lender can solve inside the completion window.

When speed genuinely is the constraint

Sometimes the VAT appears late through no fault of the buyer — most often when an intended TOGC fails close to completion. The facts change, the treatment changes, and 20% lands on the completion statement with days to spare.

That is the scenario fast VAT funding exists for, and where the 48-hour figure earns its keep. It works because the buyer in that situation is usually already VAT registered — the TOGC required it.

Which is the pattern throughout: the cases that fund fastest are the ones where the slow steps were done long before anyone was in a hurry.


This guide is general information, not financial advice. Timescales vary by case, lender and HMRC processing.

Frequently asked questions

Is 48 hours realistic or a marketing figure?
It is achievable, but it measures the lending process only. It assumes your VAT registration is already issued and the VAT position is evidenced. Those prerequisites routinely take weeks.
What is the single biggest cause of delay?
VAT registration. You cannot normally reclaim VAT if the buying entity was not registered at the point of purchase, and registration cannot be compressed to fit a completion date.
Can funding be arranged before I have a completion date?
Yes, and it is a good idea. Agreeing terms in principle early means the only remaining step at completion is the drawdown, which is where the 48-hour figure becomes real.
What if completion is in three days and nothing is prepared?
It depends entirely on your VAT registration. If the entity is registered, there is a realistic path. If it is not, the problem is with HMRC's timetable, not the lender's.

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