Who can apply for a Legacy Release loan?

Any Beneficiary, Executor or Personal Representative can apply for a loan. Depending on the clients circumstances the product is fully flexible to their needs.

All Beneficiary clients will need to be able demonstrate that they can certify as a High Net Worth borrower in line with current FCA guidelines.

Why do I need a Legacy Release loan?

Some people have the disposable finances available to pay the necessary fees and costs associated with someone passing and Probate, and are happy to wait for any inheritance coming their way. For most, however, waiting for an expected inheritance windfall can be frustrating especially if the amount bequeathed is needed by the beneficiary sooner (for example to meet Inheritance Tax requirements). A Legacy Release loan does exactly what it says; by releasing the legacy that a friend or family member has left behind to enjoy, now.

What if there is no valid Will?

Unfortunately, Legacy Release loans are only available where the deceased left a valid will.

How much can I borrow?

Legacy Release offers one of the best loan-to-value (LTV) levels in the market. Depending on the respective components of the Estate, Legacy Release will offer up to 70% LTV. Loans amounts are typically between £60,260 – £350,000, with average loans around £100,000.

What is the maximum length of a Legacy Release?

Loans have a maximum term of 24 months but can be repaid at any time with no additional fees.

As an Executor or Personal Representative, am personally liable for the costs of the loan?

The cost of taking a Legacy Release loan to pay for Estate costs and tax liabilities, is considered a Testamentary cost. This means that the responsibility to pay for the cost of the loan sits with the Estate not the individual.

What if something goes wrong and the inheritance is less than thought?

Our Executor loan is non-recourse and requires no guarantees from the Executor over and above the total value of the estate. 

Beneficiary loans are personal to the beneficiary taking out the loan and should your inheritance be less than the loan amount lent you may be liable for the shortfall.

How will a Legacy Release loan affect my credit profile?

A Legacy Release loan is not based on an individual’s credit worthiness, as the underwriting focus is based on the potential Net proceeds of an Estate. Legacy Release therefore does not need to perform a credit check.

Also, as there are no monthly repayments the loan is not reported to credit bureaus thereby leaving the Client’s overall credit profile unaltered.

Do I need a solicitor?

Legacy Release does require a Professional Advisor to be retained, however this could be a Law Firm, Accountant, Bank or any other regulated professional authorised to administer an Estate. If one isn’t retained then Legacy Release can introduce you to an appropriate Advisor.

What if the other beneficiaries don't want to take out a loan?

When Legacy Release considers a loan application it is based purely on that individual beneficiary Client and their respective proportion of the estate. Their application does not affect the inheritance of other beneficiaries.

How much does a Legacy Release loan cost?

Legacy Release products are designed to be simple, transparent and fair. There are only two fees to pay with no additional or hidden charges during the lifetime of the loan:

• An arrangement fee of 2% of the principal loan amount is added to the loan account

• A monthly interest rate of 1.35% is charged on the outstanding amount of the loan account

There is no requirement to make monthly or interim payments during the lifecycle of the loan, as the loan is settled directly by the estate once Probate is granted and the proceeds can be distributed to beneficiaries.

For illustration purposes: 

On a principal loan of £100,000, an arrangement fee of £2,000 is charged and added to the loan. With a loan term of 12 months, there will be total interest charges of £17.807.83 across the term. This means that the total repayment amount is £119,807.83. The representative APR for this illustration is 19.8%

How quickly does it take from application to being able to access the money?

Legacy Release prides itself on being efficiency enabled and agile. This means we have removed every obstacle in our hands to ensure that Client loans can be deposited as quickly as possible. We don’t rely on post, as all the application forms and documents are 100% online, we integrate our systems with Professional Advisors wherever possible, and we don’t have to wait for imposed cooling off periods. Where the process is in our hands we can be ready to deposit funds within 72 hours of application, otherwise where we rely on the Professional Advisor to provide the required documentation manually, which can delay progress.

Can I pay all the arrangement fee, or some of the loan off early?

The loan has been designed to be as flexible and client focused as possible. This means you can pay the arrangement fee upfront or reduce the balance at any time throughout the loan with no administration fees or early redemption penalties to pay.