"We’re incredibly excited to be entering the market with our first finance product and into the inheritance sector specifically."
Legacy Release's paperless product enables individuals to gain early access to inheritance and will be wholly dedicated to the high-net-worth (HNW) community.
Legacy Release says the product will be "invaluable" to the HNW advisory community because the loan provided can also be used to cover legal and other professional fees and associated testamentary costs payable in advance.
Because the Legacy Release Solution is designed specifically to support HNWs at a difficult time in their lives, it operates without the need for a credit check. The lender will provide a loan of between £30,000 - £500,000 and offers a 24-month window to repay, but no security is required as the loan is repaid under assignment from the inheritance bequeathed. As a bridging loan, individuals can get the money immediately once the agreement has been approved.
The new lender is led by executive chairman Robert Golden, former CEO of the retail division of Close Brothers bank.
Legacy Release has secured financial investment from a variety of sources including the provision of a multi-million funding line from Swift Group.
Simon Dawson, chief commercial officer at Legacy Release, commented: “We’re incredibly excited to be entering the market with our first finance product and into the inheritance sector specifically. Put simply, there are not enough competitive solutions available to HNW families facing a large IHT bill before they have received the inheritance. Our product seeks to provide a stress-free option to help bridge that financial divide, and to assist liquidity when it’s needed most.
“The issues with the IHT regime are well known, it has many vocal critics. The illogic of making people pay tax on inheritance before they have received any money is particularly problematic - a situation only made worse by the delays in the probate system caused by the Covid-19 pandemic.
“This is just the start for us, the long-term objective of the company is to become a market leader for providing accessible financial release products to those who need their guaranteed windfall early, across the consumer space (matrimonial/early retirement/share maturity).”