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  • FIRST POST
    jane4567
    loan against inheritance -help
    • #1
    • 4th Jul 07, 9:24 AM
    loan against inheritance -help 4th Jul 07 at 9:24 AM
    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?
Page 1
    • Rafter
    • By Rafter 4th Jul 07, 11:15 AM
    • 3,831 Posts
    • 1,364 Thanks
    Rafter
    • #2
    • 4th Jul 07, 11:15 AM
    • #2
    • 4th Jul 07, 11:15 AM
    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.
    Smile , it makes people wonder what you have been up to.
  • jane4567
    • #3
    • 4th Jul 07, 12:07 PM
    • #3
    • 4th Jul 07, 12:07 PM
    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
  • Emmzi
    • #4
    • 4th Jul 07, 4:52 PM
    • #4
    • 4th Jul 07, 4:52 PM
    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.
    Debt free 4th April 2007.
    New house. Bigger mortgage. MFWB after I have my buffer cash in place.
    • mightymouse
    • By mightymouse 4th Jul 07, 8:47 PM
    • 316 Posts
    • 130 Thanks
    mightymouse
    • #5
    • 4th Jul 07, 8:47 PM
    • #5
    • 4th Jul 07, 8:47 PM
    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?
    Originally posted by jane4567
    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.
    • CLAPTON
    • By CLAPTON 4th Jul 07, 10:35 PM
    • 38,140 Posts
    • 26,855 Thanks
    CLAPTON
    • #6
    • 4th Jul 07, 10:35 PM
    • #6
    • 4th Jul 07, 10:35 PM
    have you actually asked your bank about a bridging loan and how much it will cost?
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