Bridging finance for separation agreements

A steady hand when assets are tied up

Separation is often a story of ill-timed cashflow. Legal fees start before assets are divided, temporary housing may be needed, and one partner might wish to retain the family home for stability. Bridging finance can provide a short-term funding line so you can act now and settle up once property sales or refinancing complete.

In the UK, bridging loans are frequently used to pay solicitors and mediation costs when equity remains locked in a home or a portfolio. The facility is designed to be temporary - typically a few months - and is repaid when the marital home sells or when a longer-term mortgage is arranged after the settlement is finalised. That immediacy matters. Many lenders can release funds within 5 to 14 days, and the market has adopted technology such as automated valuations that can compress completion times to just over a week in straightforward cases.

For families, a bridge can also help one partner buy out the other’s share, enabling children to stay in familiar surroundings. Borrowing up to around 80% of the property value, less any existing mortgage, is common across the sector, subject to valuation and credit checks. At the higher end of complexity - where trusts, overseas ownership or multiple properties are involved - bridging can sit alongside trusts to defer capital gains tax until sale, bringing liquidity without forcing hasty disposals. This approach has become more relevant as UK tax rules evolve for non-UK owners and high-value assets.

The broader market context is supportive. The UK bridging market has expanded to roughly £10.9 billion, with strong demand from limited companies and investors. That growth signals depth of choice and competitive timelines - useful when divorce timetables put you under pressure. Yet speed should not eclipse caution. Bridging is a premium, short-term product with higher interest costs and strict exit expectations. A realistic, evidence-based repayment route - sale or refinance - is the cornerstone of a safe outcome.

Bridging is not a shortcut. It is a timetable tool. Use it to buy time, not to buy risk.

Is this the right fit for you?

If legal fees are rising but your equity is tied up, a bridge can remove immediate pressure without derailing the long-term plan. It is particularly helpful where a sale or refinance is already likely, or where one partner is buying out the other to preserve continuity for children. Property investors navigating separation may also use bridging to restructure portfolios and avoid forced sales while settlements are negotiated.

Those with complex estates, trust arrangements, or international elements can pair bridging with trust strategies to time tax events more efficiently. If your circumstances are uncertain, or if you cannot evidence a viable exit within the expected term, a different route may be safer. Expert, regulated guidance is essential.

Practical paths you can take

1. Fund solicitor and mediation fees now - repay from eventual property sale.

2. Buy out your partner’s equity - refinance later onto a standard mortgage.

3. Secure temporary accommodation - release funds when the family home sells.

4. Restructure property portfolios - use bridging while trusts or transfers complete.

5. Consolidate short-term expenses - repay when settlement or asset disposal finalises.

What it costs and what it means for you

Who qualifies and on what terms

Eligibility is grounded in the exit plan. Lenders will want clear evidence of how and when the loan will be repaid, typically through the sale of a property, division of assets at completion, or a refinance into a long-term mortgage once the settlement is agreed. Credit history, affordability, and the property’s value are assessed, alongside any existing mortgages or charges. Borrowing levels commonly reach up to around 80% of the property’s value after deducting current lending, but complex cases may see lower workable limits.

Consumer bridging is usually regulated, with protections under the FCA framework and the Consumer Credit Act relevant in certain scenarios for individuals. Where borrowing is for business purposes, different rules may apply. If circumstances change and repayment falters, interest can escalate quickly and disputes can arise. That is why due diligence on legal title, valuation, and solicitor coordination is critical. Kandoo works with a range of UK lenders, helping match your timeline to a lender that can move promptly while preserving a realistic route to repayment.

From application to funds in your account

1. Outline your objective and preferred exit route.

2. Share property details and existing mortgage statements.

3. Receive an in-principle decision and fee summary.

4. Valuation instructed - digital or full survey as required.

5. Solicitors complete legal checks and review charges.

6. Offer issued with terms, costs, and repayment plan.

7. Sign documents and complete - funds released promptly.

8. Monitor progress and prepare sale or refinance.

Advantages and drawbacks at a glance

Read this before you proceed

Plan your exit at the start. If you expect to sell, instruct an agent early and understand realistic timeframes in your local market. If you expect to refinance, check your affordability and product eligibility in advance, including stress-tested rates. Review the total cost, not just the monthly rate, and model a buffer for delays. Understand your regulatory status - consumer or business - and the implications if things go wrong. Keep communications clear between both parties, your solicitors, and the lender, especially where a buyout is part of a wider consent order. Good process reduces risk, cost, and stress during a demanding period.

Alternatives worth considering

1. Fee arrangements with your solicitor, including staged billing.

2. Secured personal loans with longer terms and lower monthly rates.

3. Further advance from your current mortgage lender.

4. Family loans or equity gifts documented by solicitors.

5. Selling a non-core asset to raise part of the funds.

Frequently asked questions

Q: How quickly can a bridging loan complete? A: Many providers can release funds within 5 to 14 days. Technology such as automated valuations can shorten timelines where properties and legal titles are straightforward.

Q: Can I use a bridge to buy out my partner? A: Yes. Borrowing up to around 80% of the property’s value, minus existing mortgages, is common. The bridge is typically repaid via refinance or from the settlement proceeds.

Q: What is the exit strategy and why does it matter? A: The exit is your repayment plan - usually sale or refinance. Lenders price and approve the loan on that basis. A well-evidenced exit reduces risk and cost.

Q: Are there protections for individual borrowers? A: Consumer bridging is regulated and courts can consider unfair relationships under UK law. Business-purpose loans can be unregulated, so advice is crucial.

Q: What happens if the sale or refinance is delayed? A: Interest accrues and you may need an extension, which increases cost. Build time buffers and contingency plans to avoid stress and disputes.

Q: Can bridging help with tax planning in complex separations? A: Yes. Used alongside trusts, bridging can provide liquidity while deferring certain taxes until sale, supporting orderly transfers without forced disposals.

How Kandoo supports your next move

Kandoo is a UK-based retail finance broker with access to a wide panel of bridging lenders. We help you compare costs, timelines, and exit routes, then coordinate valuations and legal work so funds arrive when you need them. Speak with us to assess suitability, model total costs, and secure a solution that fits your settlement timetable.

Important information

Bridging loans are short-term secured credit and may not be suitable for everyone. Your property may be repossessed if you do not keep up repayments. Seek independent legal and tax advice. Terms depend on status, valuation, and lender criteria.