Nick Smith, sales and marketing director of Reward Finance, has raised a glass to a deal that has allowed a family to take ownership of three pubs.
Reward Finance were able to demonstrate flexibility by settling a large inheritance tax bill which meant the hostelries could be returned to the children of popular businessman Robert Tucker.
It meant that Robert’s children, Henry and Becky -- who had previously been unable to release the pubs from the executor until the bill had been settled -- could once more open the doors for business at three of the east coast’s most famous pubs.
Calvin Dexter Financial Solutions had alerted Reward Finance about the problem which came about after Robert passed away in December 2015.
And flexibility provided a solution which ensured the future of The Bay Hotel, The Fylingdales Inn and Ye Dolphin in Robin Hood’s Bay after the conclusion of the probate process. In addition, The Bridge Inn at Ruswarp has also returned to family ownership.
Mr Smith said there was no hesitation in providing the funds, following Calvin Dexter’s approach, to offer a solution to the family after they endured a difficult couple of years (a huge relief for them as banks and many other funders were unable to help).
He said: “The two of them have been left four very solid businesses but, as can often happen, the capital is tied up in the property which can present a problem when settling inheritance tax bills.
“Rather than selling assets to meet the bill we were able to provide the funds to them so they could pay the executors who then released the properties to them, as Robert Tucker wished.
“The repayments will be made through the successful businesses for the next few years before transferring the loan to a mainstream bank, once a trading history has been established.”
Now Henry and Becky are overjoyed to settle the matter. The former said: “Our father Robert was really well known in the area and built up four extremely successful businesses by working closely with his valued and trusted tenants.
“Naturally we are both extremely proud to be taking over the mantle from our father. It is a huge responsibility but we are really looking forward to working with the excellent teams we have in place to build on the legacy provided by him.
“Our thanks go to all those who provided advice and help during the process, in particular Calvin Dexter and Reward Finance, both of whom quickly understood the position we were in, our solicitors Flint Bishop and accountants Watson Buckle.”
“We are delighted that, with Reward’s help, the family can now concentrate on continuing running the great business our father created."
Calvin Dexter says he soon realised a bespoke funding solution was required for the deal (advice on which was given by Clarion Solicitors and Sanderson Weatherall).
He explained: "When I was approached by Ian Gill of Watson Buckle, who was one of the executors of the estate, I quickly realised that a bespoke funding solution was required in order to pay the IHT liability, hence I approached Nick Smith to discuss providing the required finance.
“This was an unusual and interesting transaction to work on and I am delighted that we have managed to secure the future of these famous pubs."