£25m additional funding for specialist probate lender, Provira

Provira, A specialist probate lender has signalled its plans for future growth having secured an additional £25m new funding facility.

Provira Limited, a Suffolk-based firm providing loans to executors of estates to pay Inheritance Tax and beneficiaries of estates to enable them to gain immediate access to a share of their inheritance, has announced the extension following significant growth over the last 12 months.

Provira provide two main lending options.

  • Estate Advance – aimed at Executors of estates enabling them to pay Inheritance Tax or any other estate liability
  • Inheritance Advance – aimed at Beneficiaries of estates enabling them to access their inheritance now, rather than waiting for probate to be granted and assets sold

According to Managing Director Steve Gauke, lending for this type of loan remains in high demand especially given the well-documented delays at the Probate Registry. Many simply cannot afford to pay Inheritance Tax prior to obtaining probate, without which the assets remain unsold. In addition, beneficiaries continue to wait on receiving their inheritance; an issue which has been brought to light by research which shows over 1/3rd of people in the UK are reliant on an inheritance to fund their retirement. First time buyers have become an election football as the party manifestos make an attempt to woo votes with SDLT and borrowing incentives. Data shows the continued reliance on the bank of Mum and Dad as one third of first time buyers are cohabitees because of affordability issues with housing according to Halifax.

The debt facility has been provided by a high profile but as yet unnamed City investment fund.

The loans themselves are lent against the value of the estate, with no monthly repayments, or early repayment fees, and can be used to pay for Inheritance Tax, other estate expenses or for personal use…

“The loan is simply repaid in full when the assets in the estate are sold. The great thing about these loans is that the underwriting is based purely on the value of the estate rather than personal circumstances,”

says Gauke, adding

“Over the last 12months, Provira has become established as the UKs leading provider of these types of loans; in that time we’ve seen our customer base and loan book grow by nearly 250%. Securing this funding now ensures we can continue to meet the growing demand and continue to provide outstanding customer service, both to borrowers and introducers. We understand this is a difficult time for our customers and that they want to access funds as quickly and easily as possible. This is exactly what we enable them to do.”

The business has to date been funded by a combination of shareholders and a separate Institutional Investor. Provira works directly with borrowers and with law firms, estate administrators and brokers.

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