Yes, eligible beneficiaries may be able to obtain a probate loan while waiting for a property within an estate to be sold.
Properties are often one of the main reasons estate administration takes longer than expected. Before beneficiaries can receive their inheritance, executors may need to value the property, market it for sale, complete the conveyancing process and settle any outstanding liabilities.
For beneficiaries who need financial support during this period, an inheritance loan may provide the option to accessing a loan whilst waiting on the anticipated inheritance entitlement. Eligibility criteria apply, and each application is assessed individually based on factors such as the value of the estate, the beneficiary's expected entitlement, and the overall circumstances of the estate.
Untangled's probate lending allows eligible customers the option of borrowing with a loan that is designed to be repaid in full when the estate is distributed in accordance with the terms of the loan agreement giving the customer access to funds sooner.
Why Can a Property Delay Estate Distribution?
When a property forms part of an estate, executors often need to:
Only once these steps have been completed can the estate usually be finalised and distributed to beneficiaries.
As a result, beneficiaries may have to wait several months, or longer, before receiving their inheritance.
How Do Probate Loans Work When a Property Hasn't Been Sold?
An inheritance loan is a loan that may be available to beneficiaries who are expected to receive funds from an estate.
Rather than waiting for all estate assets to be sold and distributed, eligible beneficiaries may be able to borrow a portion of their anticipated inheritance entitlement through a probate loan.
Lenders will typically assess factors such as:
Each application is assessed individually to determine whether there is sufficient value within the estate to support the loan.
Why Would Someone Take Out a Probate Loan While Waiting for a Property Sale?
People choose probate loans for many different reasons, including:
Frequently Asked Questions About Inheritance Loans and Property Sales
Do I Have To Wait For A House To Be Sold Before Receiving My Inheritance?
In many estates, beneficiaries must wait until the property has been sold and the estate administration process has been completed before receiving their inheritance. The exact timeline will depend on the circumstances of the estate.
Can I Get A Loan If The Estate Includes A Property?
Yes, some lenders offer probate loans to eligible beneficiaries even when an estate includes a property that has not yet been sold. Applications are typically assessed based on the value of the estate and the beneficiary's anticipated inheritance entitlement.
Is A Probate Loan Based On The Value Of The Property?
The value of the property may form part of the lender's assessment, alongside other assets, liabilities and the beneficiary's expected share of the estate.
What Happens To The Loan When The Property Is Sold?
Once the estate is administered and distributions are made, the loan balance and any agreed charges are repaid in accordance with the loan agreement.
Will A Probate Loan Affect Other Beneficiaries?
In most cases, probate loans are assessed against an individual beneficiary's entitlement and do not alter what other beneficiaries are due to receive from the estate. However, every estate is different and applications will be assessed individually.
How Long Does It Take To Get A Probate Loan?
Timescales vary depending on the estate and how quickly information can be verified. Our underwriting team will usually need to assess details of the estate, the beneficiary's entitlement and any potential risks before making a decision.
Talk to Untangled About Probate Loans
If you're waiting for a property sale as part of the probate process and need financial support in the meantime, Untangled may be able to help. Our inheritance advance loan allows eligible beneficiaries to borrow up to 80% of expected inheritance whilst probate continues.