Bridging finance for estate distribution

Faster cashflow for estates when timing matters

Bridging finance is increasingly used by UK executors to unlock short-term liquidity when estate assets are tied up in property. With bridging, funds can be arranged in days rather than weeks, giving families the means to pay Inheritance Tax, settle legal fees, and avoid pressured sales at the wrong price. It is a practical solution when bank transfers, property sales, or traditional mortgages cannot move quickly enough.

The market has matured rapidly. UK bridging completions have surged into the tens of billions, with record quarterly volumes highlighting how this once niche tool is now mainstream. The appeal is straightforward: transparent costs, flexible terms, and a clear exit plan based on the eventual sale or refinance of an estate asset. In 2025, a gentler interest rate backdrop has improved affordability, further strengthening bridging’s role in property transactions, refurbishments, and probate scenarios.

For estates, the timing problem is acute. HMRC typically requires Inheritance Tax on qualifying estates to be paid early in the probate process, yet inherited properties cannot generally be used as security before probate is granted. Bridging solves this by using other assets as security while allowing the estate to proceed in an orderly fashion. Executors retain the freedom to market property properly, complete light works to improve value if appropriate, or simply wait for the right buyer rather than accept a discount.

Flexible underwriting lets borrowers fund a range of assets, from residential homes to mixed-use buildings, HMOs, and land. Higher loan-to-value ratios - often up to 75% - can stretch to meet larger liabilities, provided there is a credible exit strategy. The result is fewer chain breaks, fewer forced auctions, and a better chance of maximising the final distribution to beneficiaries.

Understanding APR is not just about percentages - it is about what you will pay in real terms. We break it down so you can decide with confidence.

A short-term bridge is not the answer in every case, but when speed, certainty, and control are priorities, it can be the simplest route to a fairer outcome.

Who benefits from this approach

Executors and personal representatives who face immediate IHT bills or legal fees but cannot access estate funds until probate is granted will find bridging invaluable. Beneficiaries awaiting distribution also benefit, as the loan can prevent rushed sales that depress values.

Homeowners and landlords dealing with chain breaks, auction timelines, or refurbishment plans may also use bridging to keep transactions on track. Regional property owners are well served too. Bridging is no longer confined to prime central London - lenders are active across Greater London and UK regions, reflecting today’s broader demand for fast, flexible finance.

Your financing choices right now

1. Executor bridging loan to cover IHT and legal fees, repaid from property sale.

2. Purchase bridge for chain breaks or auction deadlines with sale or refinance exit.

3. Light refurbishment bridge to boost sale value before marketing the property.

4. Second charge bridge using existing equity to avoid disrupting a main mortgage.

5. Short-term business bridge where the estate includes trading property or assets.

Quick takeaway

• If you need funds in days, not weeks, bridging is designed for that timeline.

Cost, impact, returns, and risks

Are you likely to qualify

Eligibility rests on three pillars: security, exit, and affordability. Lenders typically take a charge on a UK property that you already own, as inherited properties usually cannot be charged before probate. The property type can vary - residential, buy-to-let, mixed-use, HMO, or land - provided valuation and legal checks stack up. Loan-to-value up to around 75% is available with selected lenders, though complex titles or adverse credit may reduce leverage.

Your exit strategy must be credible and evidenced. For estate cases, that is usually the sale of a property after probate, a refinance onto a longer-term product, or a combination of asset sales. Lenders will look at marketing plans, local comparables, and timing assumptions. They also assess the borrower’s profile, existing commitments, and ability to service monthly interest where retained interest is not used.

With Kandoo, you can access a curated panel of UK bridging lenders that understand probate timelines, IHT obligations, and regional market dynamics. We help structure the loan - including retained interest if preferred - to align costs with the expected sale date, and we coordinate valuation and legal work to compress completion times.

From enquiry to funds - the simple steps

1. Share your timeline, loan amount, security, and exit plan.

2. Receive indicative terms and estimated total cost summary.

3. Instruct valuation and begin lender due diligence promptly.

4. Your solicitor completes legal checks and undertakings.

5. Final offer issued after valuation and legals are cleared.

6. Funds drawdown to meet IHT or transaction deadlines.

7. Market the property and progress probate documentation.

8. Repay the bridge from sale proceeds or refinance.

Advantages and trade-offs at a glance

Read this before you proceed

Bridging is about certainty and timing. If your primary goal is speed with a short, clearly defined exit, it can be highly effective. If timelines are hazy, build in buffers. Allow realistic marketing periods, and consider price sensitivity in your local area. Where an estate includes multiple assets, sequencing matters - some sales can be accelerated while others wait for peak season. Your solicitor and broker should coordinate on probate status, undertakings, and fund flows so there are no last-minute surprises.

Interest can be serviced monthly or retained within the loan. Retained interest helps cashflow but increases the gross loan size and fees. Keep an eye on net proceeds to beneficiaries after all costs. Finally, assemble your documents early - ID, proof of address, probate details, title documents, and property access for valuation. Preparation saves days when it matters most.

Alternatives you should weigh up

1. Time-to-pay arrangement with HMRC for IHT instalments.

2. Secured personal loan or further advance from an existing lender.

3. Family loan documented by solicitors to protect all parties.

4. Remortgage or product transfer if timeframes allow.

5. Sale of non-core assets before marketing the main property.

Next steps

• Compare total costs, not just headline rates.

• Stress-test your exit for delays or price movements.

• Ask for a decision in principle before legal spend.

FAQs to get you comfortable

Q: How fast can a bridging loan complete? A: In straightforward cases, funds can be released within a few days of valuation and legal work, which is considerably faster than most high street mortgage routes.

Q: Can I use the inherited property as security before probate? A: Usually not. Lenders typically require security over property you already own. After probate, the inherited property may be used for refinance if that is your exit.

Q: What LTV can I expect? A: Selected lenders offer up to around 75% LTV, subject to property type, valuation, condition, and your credit profile. Lower LTVs may apply for complex cases.

Q: Do I have to service monthly interest? A: Not necessarily. Many borrowers choose retained interest so payments are rolled up and cleared when the loan is repaid, improving short-term cashflow.

Q: What is the typical term? A: Most bridging terms run 6-12 months with options to extend. That aligns with typical probate timelines and marketing windows for estate property sales.

Q: How do I evidence the exit? A: Provide a realistic sale plan, agent appraisals, local comparables, and a timeline. If refinancing, include broker agreements and indicative mortgage terms.

What Kandoo brings to your case

Kandoo is a UK-based retail finance broker that connects you with specialist bridging lenders who understand probate, IHT timing, and regional property markets. We benchmark total costs, structure retained or serviced interest, and coordinate valuation and legal work for rapid completion. Speak with us today to secure a clear, timely path to distribution.

Important information

This article provides general information, not advice. Bridging loans are secured and your property may be at risk if you do not keep up repayments. Terms depend on your circumstances and lender criteria. Always seek independent legal and tax advice.