Divorce Settlement Loans
It's an unfortunate fact of life that sometimes couples find themselves in situations where they need to separate and that naturally involves splitting assets, of which the largest one will be property.
Where a property sale is taking longer than expected or where there's an urgency for the owners to live separately a bridging loan can offer a fast way of releasing the capital of a property and this is sometimes referred to as a divorce bridging loan.
If you're consider using bridging finance to release that equity from a property and that property is based in England, Scotland, Wales or Northern Ireland arrange a call with one of our specialists today or apply online and get our best no obligation quote.
Divorce Bridging Loan Lending Criteria
| Loan to value (LTV) | Up to 80% maximum |
| Loan term | 1 to 24 months |
| Loan amount | £26,000 up to £25m |
| Interest options | Rolled-up, retained or serviced |
| Interest rates | From 0.44% |
| Decision | Instant decision in principle |
| Completion | 3 days to 2 weeks |
| Early repayment fees | None |
| Availability | Secured on assets in UK Individuals, Companies, SPVs No credit & adverse credit considered |
| Exit strategy | Sale or refinance |
We're financial experts who arrange divorce bridging loans, securing you the best rate finance from UK specialist lenders, including private equity firms, private investors and family offices.
Get expert assistance today, we're on hand to answer any questions about divorce bridging loans.
Call our friendly team on 01202 612934, we're ready to help.
Can we help self-employed applicants?
Yes. We can help self-employed applicants as well as applicants with poor credit histories.
Should you be borrowing money at this time?
Money Helper, formerly the Money Advice Service, has an extensive collection of articles on their website on divorce and separation.
We are unable to give you advice on whether you should borrow money. However, if you have decided after taking advice from other professionals that this is a prudent course of action give your personal situation, we would appreciate the opportunity to work with you.
Can we help you in other areas of your divorce proceedings?
We're only able to help you release funds from the property assets you own.
Sometimes, it takes a long time for a property to sell and you and your spouse or civil partner urgently need to live in different properties.
You or your spouse or civil partner could use the finance we provide you with to live in rented accommodation until your family home sells.
Many clients also use the funds we arrange as a litigation loan to meet their legal fees and to pay for their legal advice.
Please let us know how we can help and we'll try our very best to do so quickly and sensitively.
For matters pertaining to the financial settlement following your divorce, please seek independent legal advice. We are not solicitors.
Please seek the experience of experienced divorce lawyers and family law solicitors within respected and established law firms for guidance on the following:
- the financial settlement you wish to negotiate,
- entitlement to Legal Aid,
- how to divide financial assets,
- who will pay legal fees,
- control over a joint bank account,
- domestic abuse,
- court fees,
- the size of legal bills related to the process,
- the divorce process,
- your ex partner's pension,
- divorce costs,
- spousal maintenance,
- post-split financial support,
- civil partnership dissolution,
- the treatment of bank loan and other outstanding debts,
- financial claims over and the splitting of matrimonial assets, non-matrimonial assets, and other assets,
- entitlement to future earnings and your spouse's assets,
- child maintenance,
- and more
You should ensure that the law firms you choose to represent you are registered with the Solicitors' Regulation Authority. By checking the Solicitors' Regulation Authority website, you'll be able to see which specific legal services individual legal firms provide and whether they have expertise in arranging divorce settlements.
Please note that we are unable to give any advice on any legal or personal issues surrounding your separation.
How are divorce settlement and litigation loans repaid?
There are three standard ways in which you can repay divorce/litigation loans.
First, you may choose to sell the property or properties which you used as security onto a third party. You then use the funds from that sale to settle the loan.
Second, if the property has increased in value enough since it was purchased, you could pay it off with a second charge loan, sometimes called a second mortgage.
Third, you could arrange a new mortgage to the value of the outstanding mortgage amount plus the amount you need to repay your divorce/litigation loan.
Do you need to make monthly payments?
No. The form of financing we offer to couples separating are bridging loans.
With a bridging loan, you repay the original amount borrowed plus the interest you've accrued in one tranche at the end.
Your bridging loan is secured on property which is not your family home.
How much can you borrow with a divorce settlement loan?
You can borrow between £26,000 and £4m on property which is not your primary residential property - in other words, your family home or marital home where you are registered as living.
You may secure a divorce settlement loan against residential buy-to-let property, commercial property, or mixed-used property.
We can find funding for up to 80% of the market value of any property you provide as security but any existing mortgage or commercial loan already secured against it will be taken into account.
For example, if you own commercial premises with a value of £500,000, 80% of its market value is £400,000. If there is an outstanding mortgage balance against that property of £200,000, then you may be able to borrow £200,000 for a divorce settlement or litigation loan.
At no time must the total borrowing on a property you own exceed 80% of its market value.
Will I need my permission from my ex-partner to borrow money?
If you and your spouse or civil partner jointly own the property or properties you wish to provide as security, you will almost certain need their permission for a loan secured against the property or properties.
If you have full title to the property, you may not need to seek permission.
Either way, please get in touch with your legal services team to find out more as we're unable to provide you with assistance to this question.
