HNW Lending has unveiled a new service aimed at those with inheritance tax bills as the result of being left money in a will.
The peer-to-peer lender has launched the loan facility to help families who need to pay all or part of an inheritance tax bill before being granted probate in order to speed up the process.
Loans can be provided for three to six months or for longer where required with rates depending on negotiation. The loan can be paid out in 10 days.
Recent deals it has completed included a loan of £100,000 on a Mayfair flat worth up to £2 million left in a will by an elderly lady. Her executors needed to pay a £60,000 tax bill before being granted probate and HNW Lending was able to provide the loan based on the security of the asset. The loan was also used to pay for funeral costs, legal fees and service charges.
Inheritance tax of 40% is payable on estates valued at more than £325,000 – and needs to be paid before probate is granted and the value of the estate can be paid out to the beneficiaries of wills. HMRC allows the bill to be paid in instalments on certain types of assets including homes which can take time to sell. However 10% of the final bill needs to be paid within six months of the death and the granting of probate will take at least eight weeks after the settlement of the bill if there are no issues.
GBen Shaw, founder and director of HNW Lending said: “Many families will struggle to find the money to pay an inheritance tax bill or even instalments when the main asset is a house which will take time to sell.
“Being able to move quickly and raise the money through a loan should prove attractive which is why we have expanded our proposition with this new service.”
