Probate Bridging Loans
Octagon Capital offers probate bridging loans that bridge the gap until your probate is granted. Compare offers from a range of UK lenders, private institutions and challenger banks.
Bridging loans for probate provide immediate access to funds whilst your family’s estate is still in probate, helping you to pay any inheritance tax (IHT), legal fees, property maintenance, and other estate-related expenses without delay. With Octagon Capital, you can access up to 50% of your inheritance or value of the estate upfront, providing immediate funds in just a few days.
Start Your Probate Bridging Loan Enquiry
Start Your Probate Bridging Loan Enquiry
*UK Property Only | *Minimum Age 21
Our Bridging Lenders
Key Features
- Borrow £50,000 – £25 million
- Loan Term: up to 24 months
- Loan-To-Value: up to 75% (regulated) and 80% (non-regulated)
- Rates from 0.44% per month
- All credit scores considered
What is a Probate Bridging Loan?
A probate bridging loan is a short-term, interest-only loan secured against the value of an estate.
When the typical probate period when someone dies is around 9-12 months or longer if there are complications or disputes, a probate bridging loan allows executors and beneficiaries to access funds before the estate is fully settled. This can help cover costs such as inheritance tax, legal fees, and property maintenance.
Octagon Capital’s loans are flexible and can be tailored to your specific needs, ensuring that you have the necessary funds to manage the estate effectively.
Speak to Octagon Capital on 0333 414 1491 for bridging loans at 70% LTV, 80% LTV, 90% LTV or 100% LTV.
What Can I Use a Probate Bridging Loans For?
- Paying inheritance tax bills – Even though probate can take 12 months or longer, the HMRC requires the inheritance tax bill (IHT) to be paid 6 months after the person dies. For many households, the sum is too big to cover from their own pockets and a probate bridging loan can help bridge the gap during this time.
- Covering legal and probate fees- The probate process involves various professional costs including solicitor fees, court fees, and estate administration charges. These expenses can quickly mount up to thousands of pounds before the estate’s assets become available.
- Funding property repairs or renovations- Properties within an estate often require maintenance, repairs, or improvements before they can be sold or distributed to beneficiaries. This might include essential repairs to make a property habitable, cosmetic improvements to maximise sale value, or urgent maintenance to prevent deterioration.
- Settling outstanding debts- The deceased’s outstanding debts and liabilities must be settled before assets can be distributed to beneficiaries. These might include credit card balances, loans, utility bills, or other financial obligations. A probate bridging loan provides the liquidity needed to clear these debts promptly, preventing interest accumulation and ensuring compliance with legal requirements.
- Distributing funds to beneficiaries- Sometimes beneficiaries have urgent financial needs or specific circumstances that require early access to their inheritance. Rather than waiting for the lengthy probate process to conclude, a probate bridging loan can facilitate immediate distributions based on the expected inheritance amounts, providing beneficiaries with financial relief when they need it most.
Key Things to Know About Probate Finance
- No monthly repayments, just interest added each month the loan is open and repaid in full when probate is granted via the solicitor
- The loan is secured against the value of the estate and is signed off by your probate solicitor
- The loan is not secured against the physical estate or your property – so you do not risk losing your property or family’s property if you cannot repay
- There are no personal guarantees or security required
- If the estate ends up not being worth as much as expected, this does not affect the amount you pay, the lender takes the fall
- Once probate is granted, the loan is fully repaid
We accept enquiries for bridging loans in London, Birmingham, Manchester, South-East England, Wales, Scotland and practically every other area of the UK upon request. We sadly cannot facilitate loans in Ireland.
What Are the Costs Involved in Probate Bridging Loans?
- Interest Rates: Starting from 2% per month.
- Arrangement Fees: Typically 1-2% of the loan amount.
- Legal Fees: Handled through your solicitor.
For example, an advance of £50,000 with a 2% monthly interest rate over 12 months would incur £12,240 in interest, plus £51,000 in capital and fees, resulting in a total balance owed of £63,240. These costs are designed to be transparent, ensuring that you understand the financial commitment involved.
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How to Apply For a Bridging Loan with Octagon Capital
Start your application by making an initial enquiry. This enquiry can be made using the form provided, sending us an email at sales@octagoncapital.co.uk or calling us on 0333 414 1491.
During this step, you’ll have to tell us how much you would like to borrow, how long for and some information about the property, including:
- The address
- The current value
- The type of property it is
- Your plans for it
Once you’ve made an initial enquiry, we can usually provide an Offer in Principle in just a matter of hours.
This offer outlines the terms that we are willing to lend on, including our best rate possible, subject to a valuation and further due diligence.
Once this is signed by you, we are ready to proceed with the next steps.
We will require a property valuation subject to approval, which must be completed by a RICS surveyor.
If you’ve undertaken one before applying, this may be viable – we’ll just need to check how recently it was conducted and the outcome. A valuation can often be completed within a week.
We will send your solicitor our checklist of requirements. If the valuation and other documents have come back positively, we can issue you with a mortgage deed to sign.
As soon as our solicitors receive the requested documents, we are ready to proceed with your bridging loan.
We are able to complete the application from start to finish in 2 to 4 weeks – or sometimes sooner.
Frequently Asked Questions About Probate Bridging Loans
Is a Bridging Loan for Probate the Same as an Inheritance Loan or Estate Advance?
A bridging loan is a common term for an Inheritance Advance/Inheritance Loan or an Estate Advance/Estate Loan. Both products offer you access to immediate funds to help you bridge the probate period.
An Inheritance Loan (or inheritance advance) provides an advance on your outstanding inheritance where the funds can be used for any purpose – whether that’s funding a business venture, covering personal expenses, or making investments.
Is a Probate Bridging Loan Secured Against my Own Property?
No, Octagon Capital does not take security against your personal home or assets. Our probate bridging loans are secured solely against the value and assets of the estate in question. This means your personal property remains completely protected while you access the funds you need.
How Long Will a Bridging Loan for Probate Typically Last?
Probate bridging loans are typically outstanding for 6-18 months, until probate is granted and the estate is settled. The exact duration depends on the complexity of the estate and how long the probate process takes to complete.
What Happens if Probate Takes Longer Than Expected?
If the probate process is delayed beyond the expected timeframe, the loan remains fully secured against the estate and monthly interest will continue to accrue. We understand that probate timelines can be unpredictable due to complications such as disputes, complex business holdings, or multiple properties, and we work flexibly with our clients when such delays occur.
How Much Can I Borrow Against the Estate?
At Octagon Capital, we can typically offer up to 50-70% of the estate’s net eligible assets. We calculate this based on the estate’s eligible assets (including UK properties, cash, and publicly quoted investments) less any outstanding liabilities such as mortgages, debts, and administration fees. Each case is individually assessed based on the specific assets and circumstances of the estate.
Is the Money Transferred to Me or a Solicitor?
This depends on the type of advance you require:
For Estate Advances: The loan is transferred directly to the executor or their appointed solicitor. If the funds are being used to pay an inheritance tax bill, we can pay HMRC directly on behalf of the estate.
For Inheritance Advances: The money is transferred directly to the beneficiary who requires early access to their inheritance.
Who is Octagon Capital?
Octagon Capital is a specialist bridging finance provider focused on probate and estate lending. We offer fast funding decisions, transparent pricing, and flexible solutions during challenging times. Our experienced team understands the urgency of probate situations and provides personal service to executors and beneficiaries across the UK.
We pride ourselves on our straightforward approach – no hidden fees, no personal guarantees required, and funding available within days of approval. With years of experience in estate finance, we’ve helped hundreds of families access their inheritance early and settle estate obligations quickly and efficiently.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
A maximum fee of 1% of the loan amount is payable – for example on a mortgage of £100,000 the fee would be £1,000, the exact fee will be dependent on your circumstances. For Bridging Finance where the net loan amount is £150,000 or below, the maximum fee charged is £1,995.
SPF Short Term Finance is a trading style of SPF Private Clients Limited which is authorised and regulated by the Financial Conduct Authority (FCA).