Bridging finance has developed significantly over the last few years, and the industry has taken great strides to overcome its unconventional reputation. If you’re wondering how to use a bridging loan, there are now many answers to that question—and the options are increasing all the time.
We can arrange bridging loans for a range of purposes, including but not limited to residential bridges, commercial bridges and international bridges
As the industry progresses, so too are the ways in which bridging finance can be used. For example, bridging finance can now easily be used for development and refurbishment projects. We can also arrange bridging finance for as a short-term solution for people who ned to move house before their old property has sold.
However, bridging finance solutions could also assist with more unusual situations—for example, bridging finance could be used during probate.
How can I use a bridging loan for probate?
Probate is the process of dealing with somebody’s estate when they pass away. This is usually carried about by an executor, an adminidstrator or a blood relative—typically someone who will benefit from the will.
Unfortunately, this process is not always straightforward. Sometimes, complications can mean that probate is not concluded quickly. If there are several beneficiaries, extra tax returns need filing, or an estate has unusual assets, probate can drag on for months or even years. This means families can be left in a position of financial difficulty. For example, estates over a certain size in the UK are liable for inheritance tax, which usually needs to be paid within six months.
This is where bridging loans come in. Far from being use purely for property purposes, a bridging loan could also be used in the event you need a lump sum during the probate period. This can then ease the difficulty of an understandably stressful time period, leaving you free to pay back the loan once probate is complete.