Case snapshot
- Facility
- Bridging loan
- Loan amount
- £900,000 net
- Property value
- £2,950,000
- Rate
- 7% a year, fixed
- Term
- 12 months
- Purpose
- Paying an estate's inheritance tax
Creative Advice
The P10 Financial team is experienced in delivering creative lending solutions for our clients. We are often approached with quirky complex requirements by high net-worth individuals.
In this particular situation, our client had approached our team to assist with an inheritance tax bill. There was a large estate to be settled, normally this would be cleared by the estate's liquid assets and there would be no further issues. There was an added complication to this particular transaction, as one of the beneficiaries lived in a European country. Due to this, the brokerage that held the estate's liquid equity portfolio was unable to release any of the cash funds to clear the IHT liability using a pre-probate sale. This was caused by the EU rules created from Brexit. As probate had taken longer than 6 months to be granted, interest began to be charged in the outstanding tax liability.
The main issue for the P10 specialist team was to find a lender that could lend the net money required in the fastest possible way. We needed a lender that understood the client's position which was slightly out of the ordinary. Once the IHT liability was paid, the full estate was able to be released and all beneficiaries to be paid their share of the inheritance.
We were able to use one of the assets to release the cash required to clear the IHT liability. This then allowed the equities to be sold and the estate to finally be settled.
Delivery for our Clients
The solution we delivered was as follows:
Property Value - £2,950,000
Net Loan - £900,000
Rate – 7% PA fixed
Term – 12 months
Exit – Probate being granted to settle the full estate
This solution delivered on all objectives for our client:
Allowed our client to pay the liability and release funds from the estate
Delivered a solution that made the process 12 months faster
Saved the client huge fees and interest from HMRC
