Bridging finance for probate cases

Why probate often needs rapid liquidity

Probate takes time, and time costs money. In England and Wales, more cases are stretching beyond a year, with delays often linked to inheritance tax, debts, disagreements, or complex assets. While you wait for the grant of probate, HMRC still expects inheritance tax to be paid on time. Mortgage arrears can mount, properties can depreciate, and buyer interest can cool. This is where bridging finance earns its keep - providing short-term liquidity so executors can act decisively rather than rush into discounted sales.

Short-term bridging loans can cover IHT, settle arrears, fund essential renovations, or buy time while a property is marketed properly. In a typical scenario, a family secures a short-term loan against a property, pays IHT and mortgage costs, completes light works, and sells at a stronger price rather than accepting a low offer. The difference can be substantial - protecting beneficiaries and reducing friction among family members.

Market conditions in 2025 strengthen the case. Average monthly bridging rates have fallen to competitive levels, with lenders quoting rapid completions and growing appetite for regulated residential cases tied to estates. The sector funded billions last year, serviced by over a hundred active lenders, and demand is rising as base rates stabilise. Most exits are via property sale, which aligns naturally with probate timelines.

Bridging turns a timing problem into a value opportunity.

Next steps you can take today:

• Speak to a broker about regulated options tied to the estate

• Obtain realistic property valuations and an agent’s marketing plan

• Map your exit - sale or refinance once title transfers

Who is likely to benefit

Executors, personal representatives, and beneficiaries facing cash-poor but property-rich estates are prime candidates. If the estate’s main asset is a home or investment property and there is insufficient cash to pay IHT or settle debts, bridging can unlock funds while probate completes. It also suits families wishing to avoid a forced sale or where siblings disagree on keeping or selling a property. A bridging facility can fund a buyout, allowing one party to retain the home and others to receive their shares promptly.

If there is a clear exit - usually the property sale, or a refinance once probate is granted - and adequate equity, bridging offers a controlled, short-term solution.

Your funding choices

1. Regulated residential bridge - secured against a home connected to beneficiaries or the deceased’s residence.

2. Unregulated bridge - for investment property or complex estate assets.

3. First-charge bridge - when there is no mortgage, often offering lower rates.

4. Second-charge bridge - sits behind an existing mortgage to release funds quickly.

5. IHT-focused bridge - structured to pay HMRC on time before probate grant.

6. Sibling buyout bridge - funds one beneficiary to purchase other shares.

7. Refurbishment bridge - covers light works to maximise sale value.

Cost, impact, returns, risks

Can you qualify?

Eligibility hinges on security, equity, and a credible exit. Lenders assess the property’s value, any existing charges, and the timeline for sale or refinance post-probate. A clear repayment strategy - typically marketing the property with realistic pricing or moving to a buy-to-let mortgage once title transfers - is essential. Regulated bridging may apply if the security is or will be occupied as a dwelling by a beneficiary; unregulated facilities are used for investment assets.

Executors should be able to demonstrate their authority, provide the will and estate details, and instruct a solicitor to manage charges against the property. Clean title, appropriate insurance, and evidence of IHT liability help streamline underwriting. Where siblings seek a buyout, a solicitor-drafted deed of agreement clarifies ownership and repayment mechanics. Kandoo can help assess your eligibility across multiple UK lenders, matching the estate’s circumstances with competitive options.

How it all comes together

1. Speak to a broker and outline the estate’s position.

2. Get an indicative quote and assess affordability.

3. Provide valuations, legal documents, and ID checks.

4. Lender instructs valuation and solicitor due diligence.

5. Receive offer - review fees, term, and exit plan.

6. Sign documents - loan completes and funds release.

7. Pay IHT, arrears, or finance works and marketing.

8. Exit via sale or refinance within agreed term.

Weighing the decision

What to check before you proceed

Scrutinise the exit first. If selling, confirm a realistic asking price, average days on market, and a back-up price that still clears the loan. If refinancing, ensure anticipated rental income and affordability meet lender criteria post-probate. Understand all costs - interest, arrangement fee, legal and valuation - and how they accrue if timelines slip. Build contingency into your term. Consider regulated versus unregulated status and choose the correct product for how the property will be used. Keep all beneficiaries informed to limit disputes. An experienced broker can align lender expectations with the estate’s legal timeline.

Alternatives to consider

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

2. Executor’s personal loan - higher risk, limited capacity.

3. Family loan documented by a solicitor.

4. Remortgage post-probate if timelines allow.

5. Sale of liquid assets to meet immediate liabilities.

Frequently asked questions

Q: How quickly can a probate bridge complete? A: Many complete in 2 to 6 weeks. Some unregulated cases can fund in under 24 hours, but plan conservatively to accommodate valuation and legal work.

Q: What interest rates should I expect? A: Competitive monthly rates often sit around the 0.64% to 0.81% range, dependent on loan-to-value, property type, and whether the case is regulated or unregulated.

Q: How is the loan repaid? A: Most loans are repaid from the property sale proceeds. Others refinance to a buy-to-let or residential mortgage once probate is granted and title is updated.

Q: Can I use a bridge to pay inheritance tax? A: Yes. Lenders frequently structure facilities specifically to pay IHT on time, protecting the estate from penalties and allowing probate to progress.

Q: Is this suitable if the estate has a mortgage? A: It can be. A first or second charge can clear arrears and stabilise the position. Adequate equity and a credible exit remain essential.

Q: What if probate takes longer than expected? A: You can often extend, subject to lender approval and costs. Build contingency and keep your agent and solicitor aligned on timelines.

How Kandoo supports your decision

Kandoo is a UK-based retail finance broker. We compare multiple bridging lenders across the market to secure competitive rates, pragmatic underwriting, and timelines that match your probate process. We focus on exits that work in the real world and keep costs transparent so you can preserve estate value while moving forward with confidence.

Important information

This information is for guidance only and not personalised advice. Bridging loans are secured against property and may be repossessed if you do not keep up with repayments. Always seek independent legal and tax advice before proceeding.