Probate Loans
We offer specialised probate lending solutions designed to provide quick access to estate funds, easing the financial pressures during this difficult period.
Our expert team has access to bespoke loans for executors and beneficiaries, ensuring you can manage inheritance tax, property maintenance, and other estate expenses efficiently and with peace of mind.
Expert finance advice
tailored to you
Quality service
Fast, friendly and professional service.
Lender Choice
Over 250 Banks, Hedge Funds, Family Offices & more.
Experience
Over 15 years of specialist finance broking.
Bespoke Lending
Finance tailored specifically to meet your needs.
What is Probate Lending?
Probate lending provides financial support during the probate process, which typically takes 9-12 months in the UK but can extend for complex estates.
It includes probate loans, executor loans, inheritance loans and beneficiary loans, offering access to funds before probate finalisation.
Until probate is granted, you are not able to access money held within the deceased’s estate, or mortgage any of the property.
Fortunately, there are a number of specialist lenders willing to grant probate loans, with the debt being repaid from the estate when probate is received.
What Exactly is Probate?
Probate is the legal process of administering a deceased person’s estate.
It involves validating their will, identifying and valuing their assets, settling any debts or taxes, and distributing the remaining assets to beneficiaries.
In the UK, this process is overseen by the Probate Registry, a division of the court system.
When someone dies, their executor (named in the will) or the next of kin (if there’s no will) must apply for a ‘Grant of Probate’ or ‘Letters of Administration’. This legal document gives them the authority to manage the deceased’s estate.
The probate process typically takes 9-12 months but can easily extend longer for complex estates.
During this time, the estate’s assets cannot be distributed, which can create financial challenges for executors and beneficiaries. This is where probate lending becomes a valuable tool, providing access to funds when they’re needed most.
Probate loans and executor loans can be made available before probate is approved.
Understanding probate can help you anticipate potential delays and financial needs, allowing you to make informed decisions about when and how to use probate loans effectively.
Read more: The Probate Process Explained: Timelines and Key Steps
Why Consider Probate Lending?
Probate lending proves valuable in various scenarios:
- Paying inheritance tax within the six-month deadline
- Covering funeral expenses
- Settling the deceased’s outstanding debts
- Maintaining inherited property
- Funding probate-related legal fees
Quick fund access helps you manage these obligations smoothly and promptly.
Probate Lending Solutions
Let’s Talk!
The Probate Lending Process
Eligibility Criteria
Executors and beneficiaries of estates in probate can apply. You’ll typically need:
- Copy of Death Certificate
- Copy of Will (if applicable)
- Copy of Grant of Probate/Letters of Administration (if applicable)
- Confirmation of the assets and liabilities within the estate
- Proof of ID, address and bank details
Application Steps
Initial Discussion
We’ll explore your needs and explain suitable options. If a probate loan seems appropriate we will send your details to one of our approved probate lenders.
Application
They will request some further information from you, along with a document checklist. The underwriters then evaluate details about the estate and loan viability. Successful applications receive a formal email offer.
Funds Released
Loan documents are issued and signed (normally electronically). Funds are then released in just a few days.
Advantages of Probate Lending
Quick and Straightforward
Access funds within days of approval, ideal for time-sensitive obligations. Our streamlined process, focussing on the estate rather than personal finances, makes application swift and straightforward.
Flexible Fund Usage
Use the funds as needed – pay inheritance tax, cover legal fees, or maintain property. Address pressing estate or personal financial needs without restrictions.
No Personal Liability
Probate and inheritance loans are secured against the overall estate, not your personal assets, protecting you from personal financial risk.
Considerations and Risks
Cost Awareness
Interest is charged monthly and is higher than normal mortgage rates, reflecting the short-term nature of these loans. Clear cost breakdowns are provided upfront, including arrangement fees and legal costs, ensuring informed decisions.
Inheritance Impact
Taking a probate loan reduces the final inheritance value. This should be communicated clearly to all beneficiaries, explaining benefits and implications.
Why Choose Bridging Finance London?
Proven Expertise
Our team’s extensive experience covers a wide range of probate scenarios, from straightforward cases to complex, high-value estates.
This knowledge ensures optimal solutions for your unique situation.
Custom Solutions
We craft bespoke lending solutions for all clients. With access to over 250 lenders, including private banks and individual lenders, we source the most suitable terms for your circumstances.
Comprehensive Support
Our team guides you from initial enquiry through to loan completion and beyond. Your dedicated point of contact ensures clear communication and prompt responses, simplifying the process during this challenging time.
Getting Started
Ready to explore your options?
Contact our team for a no-obligation consultation. Call 020 3488 5706.
We’re here to understand your needs and provide expert guidance on the best way forward.
call nowPreparation
To help us assess your situation quickly, please have ready:
- Estate details (approximate value, main assets)
- Your role (executor or beneficiary)
- Will copy and death certificate (if available)
- Desired loan amount and purpose
Don’t worry if you’re missing some information. We can still begin the process and guide you through.
The different loans
Estate-related financial solutions offer flexibility and support during the often complex and time-consuming probate process.
These specialised loans cater to different roles and needs within the estate settlement journey, providing timely access to funds when they’re most needed. None of these probate loans are secured against property, involve legal charges or personal guarantees.
Here’s an overview of three key loan types designed to address specific challenges faced by executors, beneficiaries, and those managing probate proceedings.
Probate Loans
Probate loans provide immediate access to funds from an estate that is going through the probate process. The probate process can be lengthy, taking several months to over a year. During this time, estate assets are not accessible, which can cause financial strain for those involved.
These loans are typically available to executors or administrators of an estate. There’s a minimum loan size of £100,000 and loans can go above £1.5m upon exception.
The estate itself serves as collateral, rather than the executor’s personal assets. Funds can be used to cover estate expenses, taxes, or other urgent costs. Repayment occurs when the estate is settled and assets are distributed. The loan amount is based on the estimated net value of the estate.
Executor Loans
Executors of estates often find themselves in a challenging position when faced with substantial Inheritance Tax bills or other estate liabilities, particularly when funds are not readily accessible.
This financial predicament is common, as estate administration can stretch up to a year or more, yet Inheritance Tax must be settled within six months of the deceased’s passing.
The situation is further complicated by the fact that probate or letters of administration cannot be granted until the tax is paid, creating a catch-22: without probate, executors cannot liquidate estate assets to cover the tax bill. While HMRC may offer instalment plans for Inheritance Tax payments, this route can be complex and may not always be the most cost-effective solution.
In such circumstances, Executor loans or Estate Advances can provide a lifeline for executors.
These financial products allow executors to access up to 50% of the estate’s value promptly, providing the necessary funds to settle Inheritance Tax obligations, cover legal fees, manage property repairs or renovations, and address other estate-related expenses.
The application process is streamlined, focusing solely on the estate’s net value rather than the executor’s personal financial situation. This means no personal guarantees or property charges are required from the executor. Moreover, if the estate’s final value falls short of initial estimates, executors are protected from personal liability for any shortfall, provided they’ve adhered to the agreement terms.
Repayment of the advance occurs when the estate’s assets are liquidated or distributed, eliminating the need for monthly payments. Additionally, these advances often come with no early repayment penalties, offering flexibility in estate management. This financial tool enables executors to fulfil their duties efficiently, ensuring timely tax payments and smooth estate administration without personal financial risk.
Related: What is a Personal Guarantee?
Beneficiary Loans
Beneficiary loans allow individuals who are set to inherit from an estate to access a portion of their inheritance early.
Inheriting from an estate can be a lengthy process, often taking a year or more before beneficiaries can access their inheritance. This waiting period can extend even further for estates with multiple properties, diverse investment portfolios, or intricate financial structures.
For those who prefer not to wait, beneficiary loans or inheritance advances offer a practical solution.
Whether you’re looking to make a significant purchase, invest in education, travel, or simply manage daily expenses, these inheritance loans can provide quick access to a portion of your expected inheritance. Typically, you can receive up to 50% of your anticipated inheritance within days through a straightforward application process.
These advances are flexible, available both before and after the grant of Probate or Letters of Administration, and can be arranged regardless of whether a valid Will exists. The assessment for these advances focuses solely on the value of your future inheritance, disregarding personal financial circumstances or credit scores. There’s no need for personal guarantees or property liens.
In the event that your actual inheritance is less than initially estimated, you’re protected from having to cover any shortfall, provided you’ve adhered to the agreement terms. The advance is typically repaid in full upon receipt of your inheritance, with no monthly payments required and no penalties for early repayment. This approach offers beneficiaries financial flexibility during the estate settlement process without adding undue stress or long-term financial burdens.
Anyone named as a beneficiary in a will or entitled to inherit under intestacy laws can apply. The anticipated inheritance serves as the basis for the loan. The inheritance advance loan amount is a maximum of 50% of the expected net inheritance. Interest is charged monthly and the rates are higher than traditional loans due to the inherent risk. Repayment is made directly from the inheritance when the estate is settled.
Probate Bridging Loans
In some cases a short-term bridging loan can be used to raise the cash lump sum needed. Probate bridging loans are usually arranged by an executor, with the loan secured against their own home.
While bridging loans are secured and put an executor’s home at risk, the cost of borrowing is lower than a probate loan and there is a greater choice of lenders.
FAQ
Applicants can apply for a probate loan at any point, whether before or after obtaining the Grant of Probate or Letters of Administration.
Not at all. The funds are for the recipient to use as they see fit, without any limitations on their purpose.
Job situations and earnings don’t impact the decision. The assessment is based entirely on the Estate’s value and composition, not personal financial circumstances.
Inheritance advances are provided by Provira and don’t require personal guarantees or asset security. They focus on the Estate’s value rather than the applicant’s financial status. If the Estate’s assets fall short, the applicant isn’t personally liable, provided they’ve adhered to the agreement terms. These advances offer a no-monthly-payment structure and zero early repayment charges.
Credit history isn’t a factor in the decision-making process. Lenders evaluate the Estate’s assets and liabilities, not personal financial records. The main focus is confirming the applicant’s status as a beneficiary and assessing the Estate’s value.
The process starts by estimating the Estate’s net value, considering eligible assets (typically UK-based cash, quoted investments, and properties slated for sale) minus liabilities like administrative fees and existing mortgages. Applicants can then access up to 50% of their share of this net value.
Absolutely. The underwriting is tailored to the applicant’s specific share of the Estate. The advance won’t affect other beneficiaries, and multiple beneficiaries from the same Estate can apply independently.
Borrowers will need to pay an arrangement fee, which is added to the loan amount. Interest accrues monthly on the outstanding balance and the entire debt is repaid in one go upon receipt of probate.
Repayment is due when the inheritance becomes available for distribution. Most lenders don’t charge fees for early repayment, giving flexibility in managing finances.
If the inheritance falls short of covering the advance, the applicant is protected. As long as they’ve complied with the agreement, the lender absorbs any shortfall. This is why thorough Estate assessments are conducted during the underwriting process.
No, probate loans and executor loans are not mortgages, and no legal charge is placed on property. They are very similar in principle to short-term bridging loans but do not require a collateral charge.
Still have more questions?
Useful links
Dealing with death and estate matters involves many steps and legal processes.
To help you find accurate information quickly, we’ve gathered links to official resources and trusted organisations. These cover topics like registering a death, understanding probate, and handling inheritance issues. Whether you’re sorting out an estate or need guidance on what to do next, these links offer clear, factual information to guide you through each stage.
Bereavement help and support: gov.uk
What to do when someone dies: gov.uk
Probate advice guides: which.co.uk
Probate checklist: bereavementadvice.org
