Bridging Finance Solutions has reported an increase in probate sellers looking to bridging to unlock funds tied up in the property.
Increasingly, homeowners gaining property through probate are using bridging to settle inheritance tax bills or release funds earlier from a pending sale, often to make improvements prior to sale, and enabling a maximizing of sale price under controlled sale conditions.
The firm has reported a 22% increase in deals done relating to probate compared to the same period in 2014.
Steve Barber, managing director of Bridging Finance Solutions, said: “Many individuals, and indeed those operating within the professional services sector typically associate bridging with property development and auctions; however, areas such as probate and tax can really benefit from bridging as a short term solution.
“It’s really important that the adviser understands and recognises how and where bridging can be used and where it can add real value. Instances of probate are perfect examples where a property has been inherited and short term funding is need in order for things to progress. Beneficiaries will often want to obtain funds quickly but without the requirement for a ‘Fire Sale’ of the property in order to maximize its value.”
