Probate bridging loans and inheritance tax bridging loans — access funds against an inherited property before probate completes or IHT falls due.
We have whole of the market access allowing us to find our customers the best possible deal.
Inheriting a property doesn't always mean inheriting quick access to its value — probate can take months, and beneficiaries are often left waiting before they can sell, refurbish, or release any equity. A probate bridging loan lets you borrow against the inherited property, either to cover costs such as inheritance tax, to fund a refurbishment before sale, or simply to access some of the value sooner.
Inheritance tax is usually the biggest pressure point: HMRC expects payment within six months of the end of the month someone died, and in most cases at least part of the bill has to be paid before the probate registry will issue a grant of representation. If the estate's value is mostly tied up in the property itself rather than cash, that creates a real catch-22 — you can't easily sell the house to raise the tax without probate, and you often can't get probate without paying some of the tax first. An inheritance tax bridging loan is secured against the inherited property itself, giving executors or beneficiaries the funds to meet HMRC's deadline (interest is charged on anything paid late) without a forced, rushed sale.
We work with lenders who are comfortable lending during probate, including cases where probate has been granted and cases still in progress, subject to the right legal safeguards.
Need advice on probate or inheritance tax itself, rather than financing it? GOV.UK's official guide to valuing an estate and paying Inheritance Tax is a good, independent place to start — we can only advise on the finance side.
HMRC often expects inheritance tax to be paid before probate is granted — an inheritance tax bridging loan can cover this without a forced quick sale.
Fund improvements to an inherited property to achieve a better sale price, repaying the bridge once it sells.
Access some of the property's value sooner, rather than waiting for probate and sale to fully complete.
A short-term loan secured against an inherited property, used to pay an inheritance tax bill when the estate's value is mostly tied up in the property itself rather than available as cash. It's repaid once the property is sold or refinanced, or once other estate funds become available.
In most cases, yes — HMRC generally expects at least part of the inheritance tax bill to be paid before the probate registry will issue a grant of representation, and the tax itself is due within six months of the end of the month of death. An inheritance tax bridging loan covers this without forcing a rushed sale of the property.
Yes, in many cases — we work with lenders who are comfortable lending both before and after probate is granted, subject to the right legal safeguards around the estate and who's authorised to borrow against it.
Typically the executor(s) or administrator(s) of the estate, or in some cases a beneficiary, depending on how the loan is structured and what the lender requires — we'll talk through who needs to be party to the loan for your specific situation.
Most commonly from the proceeds of selling the inherited property, or by refinancing onto a standard mortgage once probate has completed. Interest is usually rolled up rather than paid monthly, so there's nothing to find from your own pocket while the estate is being settled.
No. Raise Commercial Ltd is not authorised or regulated by the Financial Conduct Authority. We arrange unregulated commercial and investment property finance only. We never lend against a property that is or will become the borrower's or their family's home.
