30% of house price loan against inheritance?

chudrun

If I have 100k, and wish to borrow 30k to buy a flat, but have no income, only an inheritance due within a year (which will easily cover the loan) which type of mortgage - or straight-forward loan? would be applicable for my situation?

dopester

If it is possible, a commercial loan is what you'd be after I would imagine. It would be for a lender to consider your proposal and decide whether to approve it. However lenders are staying on the side of caution these days.

It might not apply in your circumstances, but sometimes people have to take commercial loans from banks in order to pay the IHT (Inhertiance Tax) due on an Estate above the IHT threshold - especially when the estate consists of high value property and not much in liquid assets to pay the IHT.

Probate isn't granted until IHT has been paid - as I understood it last time I checked. Which means none of the executors/administrators can proceed with sorting the estate out.. eg selling the house. Tax office makes it payable straight away.

So if lenders did find you were indeed set to inherit from an estate of the deceased, they might consider it, I would have thought. You sure that it will only be a year? Sometimes the settling of an estate can take much longer than a year.

RAS

CAn you get an interim pay-out?