News Article

Legislation & Litigation

People are taking out loans to pay probate

By CreditMan Wednesday, December 3, 2014

Alternative peer-to-peer lender HNW Lending is disappointed that the Chancellor did not increase the nil band for inheritance tax, which has not moved since 2009. It believes a growing number of people are taking out loans to pay inheritance tax bills in order to ensure they can pay out the proceeds of wills.

HNW Lending, which is funded by a panel of high net-worth individuals, has seen a growing number of people approaching it to take out loans for this purpose. One recent deal it 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.

Ben Shaw, founder and director of HNW Lending said: “The IHT threshold has been too low for too long. With house price inflation many families have ended up with estates valued way more than £325,000 but are ‘cash poor’ and unable to pay their tax bill and release the proceeds of their relatives wills’. Some 16,000 estates pay IHT a year, and we believe that a growing number of people are taking out loans to pay the subsequent bills.”

HNW Lending recently launched a new loans service to enable 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.

The HNW Lending process
The process will normally take no longer than 10 days to complete. HNW Lending Ltd will assess the value of a potential client’s home or portfolio of property, and based on this it will then find a lender prepared to provide funds against it.

For further information about HNW Lending, visit, or contact Ben Shaw at