Complex cases

“I have inherited a property and need to release money before it sells”

A bridging loan can release money against an inherited property before it is sold, and is commonly used to pay an inheritance tax bill that must be settled before probate is granted. It is repaid from the eventual sale or from a refinance if the property is retained.

An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.

Sound familiar?

You have inherited a property, alone or with siblings
Probate has not yet been granted, or has only just been
There is an inheritance tax liability due before the estate can be distributed
You want to renovate before selling, or buy out a co-beneficiary

The situation

Inherited property creates a specific cash-flow problem: the asset is valuable but illiquid, and inheritance tax is generally payable before probate is granted, which is before the property can be sold. Executors are frequently asked to find a large sum from an estate whose main asset they cannot yet touch.

The other common version is family: several beneficiaries, one of whom wants to keep the property and needs to buy the others out.

Why the usual lenders say no

A mortgage lender will not lend against a property that is not yet legally yours.
Executors generally cannot borrow against estate property through mainstream products.
The timescale — probate deadlines and HMRC payment dates — does not fit term lending.

What usually works

Probate or inheritance tax bridging

Specialist lenders will lend to executors or beneficiaries against estate property, often before the grant of probate, on the basis that the sale or the transfer will repay it.

Funding a buy-out of co-beneficiaries

Where one beneficiary keeps the property, a bridge funds the payment to the others and is then refinanced onto a residential or buy-to-let mortgage in that person’s name.

Renovating before sale

Inherited properties are often dated. A short bridge can fund modernisation where the uplift in sale price comfortably exceeds the cost of the work and the finance.

Roughly how the numbers look

Illustrative figures for this situation
Typical gross LTV	Usually up to 70% to 75% of value
Term	Commonly 6 to 12 months
Interest	Usually rolled up, repaid from the sale
Exit	Sale of the property, or refinance if retained

Inheritance tax and estate administration are matters for a solicitor and an accountant. We arrange finance; we do not advise on tax or probate. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.

What we would need from you

The grant of probate, or details of the application if not yet granted
The will, and details of all beneficiaries and executors
A valuation or agent’s appraisal of the property
Details of the inheritance tax liability where relevant
Your exit: the sale, or a mortgage decision in principle if retaining
Photo ID and proof of address for every borrower

Things that catch people out

Get the estate’s solicitor involved early. Lenders will want to see the legal position clearly.
Where several beneficiaries are involved, all of them usually need to consent. Agree that before applying.
An inherited property left empty may need specific insurance. Check the existing policy is still valid.

Questions we get asked

Can I borrow against a property before probate is granted?

Specialist lenders will often consider it, particularly where the purpose is to pay inheritance tax so that probate can be granted. The legal position needs to be clear, so the estate’s solicitor should be involved from the start.

Can a bridge pay an inheritance tax bill?

Yes, that is a recognised use. The tax is generally payable before probate is granted, and before the property can be sold, which is precisely the gap short-term finance exists to cover.

What if my siblings and I disagree about the property?

Finance cannot resolve a dispute between beneficiaries. Where one wishes to buy the others out and all parties agree, a bridge can fund it. Where they do not agree, that needs settling first, usually with the estate’s solicitor.

The product that usually fits

See how it works

Every case is different. A specialist will confirm what actually fits yours.

Rather talk now?

020 4525 4876

9:00am – 5:30pm, Monday to Friday

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