Probate Loans
Probate loans can offer up to 50% of your overall inheritance upfront which you can use to pay your inheritance tax bill, legal fees and property restorations.
They exist in 2 forms:
Inheritance advance – For beneficiaries of the estate, this provides up to 50% of your future inheritance
Estate advance – For executors of the estate, this offers up to 50% of the net assets in the estate.
With probate often taking 9 to 12 months to be granted, you can receive a large portion of your inheritance straight away and put it forward to everyday use.
With loans starting from £20,000, you must be a beneficiary to apply and have a solicitor available to process the details and funds.
Get a Personal Quote
- 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 a Probate Loan?
A probate loan describes either an (1) inheritance advance or (2) estate advance which offers beneficiaries and executors of the will to access their inheritance before the probate process has been fully granted.
With probate take up to 12 months or longer to process the estate, this gives those about to receive their inheritance the opportunity to receive the money upfront which they can use to pay the hefty inheritance tax, do property restorations of the home of the deceased before it is sold or even fund their personal or children’s lifestyles.
With funding available from £20,000, £50,000 or £100,000, the funds can be available within just a few days of approval.
Octagon Capital has partnered with Provira, a leading probate advance lender in the UK who can assist with your enquiry from start to finish. With competitive rates from 2% per month and quick approval, you can start your enquiry today by using our form provided or emailing us at sales@octagoncapital.co.uk
What Can a Probate 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)
Try Our Probate Loan Calculator
By submitting this form I agree to being contacted by Provira and I have read and accept the Terms and Conditions.
Probate Loan 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). Assuming the Estate takes 12 months to liquidate, you would owe £12,240 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 a Probate Advance Loan?
Beneficiaries and executors can access up to 50% of their inheritance through a probate loan, with the minimum amount starting from £20,000. Other typical amounts that customers can access are £50,000, £100,000 or even £200,000 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 Probate Loans?
Quick access to cash – The approval and funding process for a probate loan is very quick. The process is handled through your solicitors and it is common to receive the funds just a few days after being approved. This immediate cash advance can be used for to pay for any outstanding legal fees, to pay your upcoming inheritance tax or for important everyday expenses such as school fees, home improvements and more.
Upgrade the deceased’s property – A popular reason for this type of finance is to pay for essential restorations and improvements of the deceased’s home before it is resold on the open market. These upgrades can maximise the property’s value before it is sold to a new buyer.
No charges against the property or estate – Unlike a bridging loan, the loan is not secured against property and there are no charges against the deceased’s estate or property – so you never risk losing the home when using a probate loan. The loan is calculated against the value of the whole estate and inheritance.
The repayments are taken directly out of the estate – You do not have to worry about making monthly repayments or contacting the lender to make payments each month. This is handled by the solicitor and taken automatically out of the estate when probate is granted.
Beneficiaries do not have to cover the shortfall – If anything changes to your inheritance and it is not enough to repay the loan in full, you are not required to cover the shortfall or gap in finance.
Do not have to wait for probate – Probate can be a lengthy process and the average time is 9-12 months for it 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. A probate loan allows you to access capital immediately and put it to important use.
What is The Criteria For a Probate Loan?
- Must be over 18 years of age
- UK resident
- Be a beneficiary and named in the will
- Have a solicitor dealing with the estate
- Estate must be valuable and not in disarray
- Applications assessed solely on the value of the estate, not personal circumstances or credit rating
- No charges over property
- Aimed at Beneficiaries of estates both pre and post Grant of Probate or Letters of Administration
What Information Will I Need To Provide?
- Applicant and Administrator receive a document checklist including:
– Copy of Death Certificate
– Copy of Will (if applicable)
– Confirmation of the assets and liabilities within the estate
– Proof of ID, address and bank details
How To Apply For a Probate Loan Advance
To apply for a probate loan, starting by making an inquiry using the phone number or form provided by Octagon Capital. Our partners at Provira will respond 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.
An Inheritance Advance is normally paid directly to the borrower (i.e. the person who made the application).
An Estate Advance is normally paid directly to the Executor, their solicitor or HMRC.
Yes, other beneficiaries can also access their inheritance upfront, but we will only lend up to a maximum of 50% of the value of the estate.
Yes, you can certainly be approved for a probate 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
