When someone passes away, the practical realities of probate can be overwhelming. Executors are tasked with managing the estate, settling debts, and distributing assets to beneficiaries—all while often grieving the loss of a loved one. The process is never easy, but in 2025, it has become particularly challenging.
One of the most pressing issues is liquidity. Inheritance tax (IHT) is due within six months of the date of death, yet probate often takes far longer to complete. Executors must find ways to pay HMRC and meet estate obligations while key assets—usually property—remain tied up. This mismatch between obligations and available funds leaves many families facing difficult decisions.
Bridging finance has emerged as a vital tool in these situations. By providing short-term funding, it allows executors to settle IHT, pay creditors, or distribute funds to beneficiaries without being forced into distressed sales of estate property.
The Liquidity Problem in Probate
Probate is intended to ensure estates are distributed fairly and lawfully, but the timeline rarely aligns with financial obligations. While probate can take nine months or more to complete, HMRC requires IHT to be paid much sooner.
In many estates, the wealth lies in property. A family home in London, an investment property portfolio, or farmland can hold significant value but cannot be quickly accessed. Executors are left with few options: use their own personal funds (which may not be possible), sell estate assets quickly at below-market value, or explore financing.
This is where bridging finance fits in. Short-term loans, typically secured against estate property, provide the liquidity needed to cover immediate costs while giving executors time to manage the estate strategically.
Why Bridging Finance Is Crucial in 2025
The case for bridging finance has grown stronger in 2025 for several reasons:
- Rising Property Prices: As house values increase, more estates fall into the IHT net, often without beneficiaries realising it until probate begins.
- Slower Property Transactions: Mortgage underwriting has become stricter, meaning property sales can take longer than expected.
- Increased Demand for Liquidity: Families and executors want to avoid losing value by selling properties too quickly, especially in prime markets like London and the South East.
Without bridging finance, executors may have no choice but to discount properties for a fast sale. With it, they can take their time, ensuring assets are sold at the right price and beneficiaries receive their rightful share.
How Bridging Finance Works for Probate
Probate bridging finance is typically structured as a short-term loan secured against estate assets. Key features include:
- Loan Term: Usually 6–18 months, providing enough time for probate to be granted and property sales to complete.
- Security: The loan is secured against estate property, sometimes supported by personal guarantees from executors.
- Purpose: Funds are used to pay IHT, clear debts, or release interim payments to beneficiaries.
- Exit Strategy: The loan is repaid once the estate’s property is sold or refinanced.
Unlike traditional mortgages, bridging finance is designed to move quickly. For executors facing HMRC deadlines, this speed is invaluable.
Typical Lender Requirements
Specialist lenders understand the probate process and structure their loans accordingly. Requirements usually include:
- Confirmation of the probate process being initiated.
- A clear exit plan, such as property sale or refinance.
- Valuation of the estate property to determine loan-to-value (LTV).
- Executor authority to borrow on behalf of the estate.
Because probate lending carries unique risks, interest rates are higher than standard mortgages. However, the value it preserves for beneficiaries often far outweighs the cost.
Real-World Example
Consider a family inheriting a London estate worth £3.5 million. The IHT liability is more than £1 million, due within six months. The estate includes the family home and two rental properties, but no liquid cash.
Without finance, the executors would have to sell at least one property immediately—likely at a discount due to the time pressure. By arranging a bridging loan secured on the properties, the executors can pay HMRC in full, then market the properties carefully. Once sold, the loan is repaid and the beneficiaries receive maximum value.
This kind of solution has become increasingly common in 2025 as families look for ways to balance liquidity with wealth preservation.
Linking Bridging Finance to Wider Probate Strategy
Bridging finance is often one piece of a broader estate planning and probate strategy. Executors may also consider:
- Using longer-term
probate finance solutions if sales are expected to take more time.
By looking at the estate holistically, families can ensure not only that tax bills are covered, but also that wealth is passed on efficiently and strategically.
The Pitfalls of Not Considering Finance
Executors who avoid or delay arranging finance risk:
- Rushed Property Sales: Selling quickly to meet deadlines often reduces value.
- Family Disputes: Tensions rise when beneficiaries face delays in receiving inheritance.
- Penalties and Interest: HMRC charges interest on late IHT payments, adding to costs.
In 2025, with both IHT exposure and property values at record highs, these risks are greater than ever.
How Willow Private Finance Can Help
At Willow Private Finance, we understand the pressure executors and families face during probate. Our team works closely with private client lawyers, accountants, and beneficiaries to structure bridging finance solutions that fit each unique case.
We provide:
- Fast access to specialist lenders who understand probate timelines.
- Tailored advice on exit strategies, whether through property sale or refinance.
- Whole-of-market access, ensuring the best possible rates and structures.
- Sensitivity and discretion when working alongside grieving families.
Our experience means we can often secure finance where others cannot. Whether the estate involves prime central London property, agricultural land, or a mixed portfolio, we can structure solutions that protect long-term value.
Frequently Asked Questions
What is probate bridging finance and when is it used?
It’s short-term lending secured on estate property to create liquidity during probate. Executors use it to cover inheritance tax (IHT), debts, maintenance, or to buy time for a proper sale rather than accepting a discounted offer.
How does bridging finance help pay inheritance tax (IHT) before the estate is settled?
The facility advances funds against the property so executors can meet HMRC deadlines and other liabilities. Interest typically rolls up, with repayment from sale or refinance once probate completes.
What documentation do lenders require for probate bridging?
Usually: grant of probate (or letters of administration), identification/KYC for executors, title documents, property valuation, schedule of estate liabilities, and a clear exit plan (sale or refinance).
How are interest and fees handled on probate bridges?
Many lenders offer retained/rolled-up interest so there are no monthly payments. Costs are settled from sale proceeds at redemption, alongside arrangement, legal and valuation fees.
What loan-to-value (LTV) is typical for probate bridging?
Conservative: often 50%–65% LTV on open-market value, subject to property, location, condition, and the strength/timing of the exit.
Can bridging finance prevent a distressed or rushed property sale?
Yes. By injecting liquidity, executors can market properly, complete repairs, and time the sale for stronger offers—reducing the risk of selling below fair value just to meet deadlines.
What are the main risks for families using probate bridging?
Key risks include market falls reducing sale proceeds, delays in probate or conveyancing, higher-than-expected costs, or exit slippage. Tight covenants or short terms can also add pressure if timelines slip.
Can beneficiaries be bought out using a probate bridge?
Yes—funds can be used to compensate beneficiaries so one party can retain the property, provided the exit route (long-term refinance or later sale) is viable and documented.
📞 Want Help Navigating Today’s Market?
Book a free strategy call with one of our mortgage specialists.
We’ll help you find the smartest way forward—whatever rates do next.
