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loan against inheritance -help
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# 1
jane4567
Old 04-07-2007, 9:24 AM
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Question loan against inheritance -help

I am in the middle of the complecated process of moving from England to Scotland. We have rented a house in Scotland as their is not sufficient time to buy and move in after exchange of contracts in England.I have learnt this week that I am going to inherit some money. It may take 9 or so months to come through. I would like to find out about borrowing against this inheritance to help with purchase as we don't want to rent for that long. Small house lots of kids!! Can't seem to find any information relevant to the UK. Can anyone help plaese?
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# 2
Rafter
Old 04-07-2007, 11:15 AM
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Jane,

Quite a specialist request and any bank will be taking a risk that for some reason the inheritance will not come through.

A 9 month delay suggests things are a bit complicated?

You could talk to your bank about some kind of bridging loan, but these are usually prohibitively expensive.

R.
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# 3
jane4567
Old 04-07-2007, 12:07 PM
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hi Rafter
thanks for your reply. Its not a complecated estate but it is subject to inheritance tax and therfore it takes time. I too think a bridging loan would be too expensive . In america it is quite easy to borrow against an inheritance with specialist companies - obviously you pay some percentage when inheritance comes through. In my case such fees would need to be weighed up against house price rises during the period you wait for inheritance. My uncle says he thinks you can do this in UK but doesn't have details!

thanks again Jane
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# 4
Emmzi
Old 04-07-2007, 4:52 PM
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Problem is

- wills can be contested
- rights generally can't be assigned until the estate or share thereof transfers to you (so it is in effect unsecured lending)
- solicitors fees can be huge
- any property to be sold can take a long time

The most sympathetic lender is likely to be your current bank, who presumably have seen a steady income from you, well maintained accounts, etc, over a period of years?

Failing that try a fees free, whole of mortgage broker for specialist advice - they will be able to tell you if any lenders are likely to help. Generally this will only be if you will still have a sizeable mortgage after the inheritance has paid off a chunk - otherwsie there's less profit in it for them.
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# 5
mightymouse
Old 04-07-2007, 8:47 PM
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Quote:
Originally Posted by jane4567 View Post
I am in the middle of the complecated process of moving from England to Scotland. We have rented a house in Scotland as their is not sufficient time to buy and move in after exchange of contracts in England.I have learnt this week that I am going to inherit some money. It may take 9 or so months to come through. I would like to find out about borrowing against this inheritance to help with purchase as we don't want to rent for that long. Small house lots of kids!! Can't seem to find any information relevant to the UK. Can anyone help plaese?
Hi

I have spoken to a trust company in U.S re english counterpart about this but it is not available here.

The only people who might help are the executors here if the will is straight forward.
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# 6
CLAPTON
Old 04-07-2007, 10:35 PM
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have you actually asked your bank about a bridging loan and how much it will cost?
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