Inheritance Advance Loans
Inheritance advance loans can offer up to 50% of your overall inheritance upfront – which you can use to pay your inheritance tax bill, property restorations and more.
With probate often taking up to 12 months to be granted, you can receive a large portion of your inheritance immediately for everyday use.
With loans starting from £20,000, you must be a beneficiary to apply and have a solicitor to process the details and moving of funds.
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- Starting From £20,000
- Access up to 50% of your inheritance
- Loan runs until probate is granted
- Paid in one lump sum
- Interest from 2% per month
- Available in UK, Scotland and Wales
What is an Inheritance Advance Loan?
An inheritance advance is a type of financial product that allows beneficiaries of an estate to receive a portion of their future inheritance upfront.
With probate often taking around 9 to 12 months to be granted and for all assets to be sold, beneficiaries of the deceased can access a big chunk of their future inheritance (up to 50%) which can be used for daily expenses, important purchases, inheritance tax and more.
Beneficiaries are those that have been granted inheritance by the deceased according to their will. This is typically children of the deceased or close relatives.
Octagon Capital has partnered with Provira, a leading inheritance advance lender in the UK who can help with your enquiry from start to finish. With competitive rates from 2% per month and quick approval, start your enquiry today by using our form provided.
What Can an Inheritance Advance Be Used For?
- Paying off debts
- Paying off an outstanding mortgage
- Home renovations, restorations
- Upgrading the deceased’s home for resale or rental
- Home or car deposits
- Education and school fees
- Medical bills
- Legal fees
- Inheritance tax
- Funeral costs (the average funeral in the UK costs more than £12,000)
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By submitting this form I agree to being contacted by Provira and I have read and accept the Terms and Conditions.
Inheritance Finance Example
An advance of £50,000 will incur an Arrangement Fee of 2% (£1,000). Interest is calculated on the advance and the fee. Interest accrues daily, based on an annual rate of 24% (fixed). On the basis of the Estate taking 12 months to liquidate, you would owe £12,2440 in interest plus £51,000 in capital and fees, resulting in a total balance owed of £63,240 and a representative 26.5% APR.
How Much Can I Borrow With an Inheritance Advance Loan?
Customers can access up to 50% of their inheritance through an inheritance advance, with the minimum amount starting from £20,000. Other typical amounts that customers usually borrow are £50,000 or £100,000, which is based on a calculation on the value of the estate.
What Information Do I Need To Provide To Apply?
You will need to coordinate your loan enquiry with your conveyancing solicitor who handle the legal requirements, including:
- Proof of will and that you are a beneficiary
- Proof of the value of the estate / assets / property
- Bank information – funds to be handled by solicitor
- Proof of identification
What Are The Benefits of an Inheritance Advance?
There are several advantages to inheritance advance finance and it has become an increasingly popular product in the UK.
Fast access to cash – The approval and funding process is relatively quick. Whilst mostly handled via solicitors, it is possible to receive funding in a week. This injection of cash can be used for any outstanding legal fees, to pay inheritance tax or for important everyday expenses such as school fees, home improvements and more.
Repayments taken out of the estate – You do not have to worry about meeting the repayments or making manual repayments every month. This is handled by the solicitor and taken automatically out of the estate.
Do not have to cover the shortfall – If your future inheritance is not enough to repay the loan in full, you are not required to cover the shortfall.
Do not have to wait for probate – Probate can be a lengthy process and most take 9-12 months to be granted. Depending on the value of the assets and other moving factors, this process can take even longer before your inheritance is made available to you.
What is The Criteria For an Inheritance Advance?
- Must be over 18 years of age
- UK resident
- Be a beneficiary and named in the will
- Have a solicitor dealing with the estate
- Minimum loan amount £20,000
- Estate must be valuable and not in disarray
How To Apply For an Inheritance Advance
To apply for an inheritance advance loan, starting by making an inquiry using our phone number or phone provided. Our partners at Provira will come back to you immediately with further questions and will aim to process your application as soon as possible. It is common to receive approval in days and funding within a week, depending on the circumstances.
FAQs
Once approved, there is an arrangement fee of 1-2% of the overall loan amount paid to the lender and an interest rate of 2% per month is charged until the probate is granted (usually up to 12 months).
Other fees to be aware of are the legal fees charged by your solicitor for handling the transaction – this could be just a few hundred or thousand pounds depending.
Other fees might be property valuation, surveys and reports – but these might be done as part of the probate process nonetheless.
Yes, inheritance advances are also perfectly designed to pay for inheritance tax bills (IHT) which are currently at 40% of the estate. For many beneficiaries and relatives of the deceased, this can be a very high bill and it has to be paid before probate is granted, leaving many in a stressful situation and in need of a cash injection. An inheritance tax advance is very well suited for this.
Yes, you can certainly be approved for an inheritance advance with a bad credit score because the value and eligibility of the product is based on the value of the estate of the deceased, and not your personal criteria.
A successful loan can usually be of approval within a few days and funded within a week. However, this may be longer depending on the availability of your solicitor and the complexity of the estate and inheritance. All funds are transferred in one lump sum.
The loan lasts until the point that probate is granted, so usually up to 12 months. Depending on the requirements, there may be a minimum loan duration that is applicable.
If there are changes to the inheritance later on, due to new arrangements or different parties introduced, you are not liable for these once the loan has been granted. This is on the lender and you are not responsible for any shortfalls.
Speak To Our Expert Team
Octagon Capital is made up of an experienced team of associates. We are approachable, customer-focused and results driven – contact us today to see how we could help with your next property financing solution. Find out more about us here.
Amadeus Wilson
Frank Clarke
Dan Morris
