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Probate Lending

What Is Probate Lending?

Probate lending can be complex and difficult to understand, especially for first timers. In this way, it is important to have a skilled professional by your side to guide you step by step. Probate is the official way of giving someone the authority to manage and distribute an estate.

This includes managing inheritance tax liabilities, processing the required paperwork, and unfreezing the assets, which are frozen until probate is granted. The assets frozen will be anything from tangible investments such as property to intangible assets such as bank accounts and investments.

Probate lending involves a lender providing finance to the heirs, secured against their future inheritance. The funds are then repaid once the borrower has received their inheritance

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When Is Probate Finance Required?

When Is Probate Required:

Probate is not always required, and this generally varies depending on the value and class of the assets involved. Property owned solely in the deceased’s name, bank account savings exceeding £5,000–£50,000, and investments or shares owned by the deceased will likely require probate, although the thresholds may differ.

When Is Probate Not Required:

As mentioned, probate is not always required. Where a property is owned jointly, the ownership will usually pass automatically to the surviving owner. Small cash deposits under £5,000–£50,000 can also be released without probate. Another instance where probate is not required is where a pension or life policy is written “in trust” and paid directly to beneficiaries.

Types of Probate Lending We Arrange

Inheritance Tax Bridging Loans

Perhaps the most common form of probate lending is bridging loans, where the security is the incoming inheritance. These loans are commonplace and are arranged easily. They are generally issued after probate, although some lenders can issue them before probate (based on the “right to inherit” rather than a specific asset).

Executor and Beneficiary Loans

Executor and beneficiary loans are also called inheritance advances or probate loans. These loans are well-established products that provide the borrower with the funds required to cover the costs associated with wrapping up a deceased person’s estate.

Probate Lending with Rolled-Up Interest

It is common for probate loans to have the interest rolled up, as this enables the borrower to have more cash flow flexibility over the life of the loan. In order to increase the day one release, it is possible to opt for a serviced facility, although this option is far less popular.

Our Lender Network for Probate Finance

We have an extensive network of lenders with whom we work on probate cases. These lenders range from specialist probate lenders to private banks and bridging lenders. When dealing with high-value estates, lenders will generally tailor a bespoke lending solution specifically for the borrower.

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How Silver Oak Capital Can Help

  • Experience with Sensitive and Complex Estates

    Silver Oak Capital has an in-depth knowledge of probate lending and inheritance loans. Having worked on a number of complex probate cases for a variety of different clients, we are confident that we can assist you in accessing probate finance, no matter how complex the situation.

  • Access to Lenders Comfortable Lending Pre-Probate

    Having operated in the probate space for several years, Silver Oak Capital has a network of hundreds of lenders, many of whom are comfortable with probate lending. We can leverage this network to ensure that you have access to the best probate loans from the most reliable lenders.

  • Speed, Discretion and Minimal Stress for Beneficiaries

    Given the sensitivity of inheritance lending and deceased estates, it is important to have a skilled and discreet broker by your side. Silver Oak Capital can ensure that your probate loan is accessed with minimal fuss and effort.

  • Clear Exit Planning from Day One

    Perhaps the most important factor to consider when arranging probate loans is the exit strategy. With this in mind, it is important to consult with your broker to ensure that you have a foolproof exit strategy in place. Without this in place, you may be unable to source a loan or, worse, be unable to repay one.

FAQs

Probate lending can be arranged before or after the grant of probate has been issued. Pre-probate lending is based on the “right to inherit” rather than the asset itself. Post-probate lending is far more common and will likely be cheaper.
Probate lending is repaid once the inheritance has been received and the borrower is in funds.
The regulation of probate lending is complex, with some loans regulated by the FCA and others falling outside of their remit. We can help you to understand whether your specific case is regulated by the FCA prior to engaging with a lender.

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+44 207 459 4440