Dorset — security property
£280,000 Net Advance Secured Against an Inherited Property in Dorset.
When the executor of an estate needed to unlock capital tied up in an inherited property, selling immediately wasn't the right option. Although the Grant of Probate had been obtained, the estate still required funding to settle outstanding liabilities and continue the administration of the estate while the property was being marketed for sale. AF Credit provided a £280,000 net first charge probate bridging loan, secured against a detached property in Dorset. Using a desktop valuation and a conservative 32% net loan-to-value, we completed the loan in just 12 days.
Dorset — security property
| Item | Detail |
|---|---|
| Property Type | Detached residential property |
| Location | Dorset |
| Property Value | £875,000 (Desktop Valuation) |
| Gross Loan | £299,687.19 |
| Net Advance | £280,000 |
| Net LTV | 32% |
| Gross LTV | 34.3% |
| Term | 6 months |
| Interest Rate | 0.95% per month (retained) |
| Valuation | Desktop |
| Charge | First Charge |
| Completion Time | 12 days |
| Exit Strategy | Sale of the inherited property |
The estate's principal asset was a detached house in Dorset valued at £875,000, but much of the estate's wealth remained tied up in the property.
Although probate had already been granted, the executor needed access to funds before the property sale completed in order to continue administering the estate and meet outstanding financial obligations.
Rather than rushing the property onto the market or accepting a lower offer to release funds quickly, the executor wanted the flexibility to market the property properly while accessing capital immediately.
They required a lender capable of completing quickly and lending against the inherited property without unnecessary delays.
AF Credit assessed the inherited property, the executor's legal authority and the proposed exit strategy before approving a first charge probate bridging loan.
Because the borrowing represented only 32% of the property's value, a desktop valuation was sufficient, avoiding the need for a physical inspection and helping reduce both costs and completion times.
The facility comprised:
With the interest retained for the duration of the loan, the executor had no monthly interest payments to manage while the property was being marketed.
From the initial enquiry to completion, we released funds in just 12 days.
The loan gave the executor immediate access to £280,000 without needing to sell the inherited property under time pressure.
The funding allowed the estate to:
The property was subsequently sold for £862,000, and the loan was redeemed in full.
Probate bridging finance is designed for situations where substantial wealth is tied up in inherited property but immediate access to capital is required.
Executors often need funding before a property sale completes for reasons including:
A probate bridging loan provides short-term funding while allowing the property to be sold at the right time rather than simply as quickly as possible.
Why We LentThese factors allowed us to complete quickly while maintaining a conservative lending position.
FAQsYes.
AF Credit provides probate bridging loans for executors and beneficiaries who need to release capital from inherited property after probate has been granted.
Depending on the circumstances, probate bridging finance can be used to:
Every application is assessed individually, taking into account the property, the security available and the proposed exit strategy.
Yes. Where the loan-to-value is sufficiently conservative, we can complete a probate bridging loan using a desktop valuation rather than a full physical inspection. In this case, borrowing of 32% net LTV against a £875,000 property meant a desktop valuation was appropriate, reducing cost and completion time. Higher LTV applications may require a full RICS inspection.
In most cases, yes. We require the Grant of Probate to be in place before completing a probate bridging loan, as the executor's legal authority to deal with the estate's assets flows from the Grant. In some circumstances we can proceed to offer while probate is pending, with completion conditional on the Grant being received — contact us to discuss the specific timing of your application.
In most cases, yes. Because probate bridging loans are typically short-term facilities where the borrower is not generating income from the inherited property, we structure the loan with interest retained for the full term. This means interest is deducted from the gross advance at the outset, and the borrower receives the net advance without any monthly interest payments to manage during the loan.
Probate bridging finance is commonly used to settle estate liabilities, fund estate administration costs, make interim distributions to beneficiaries, carry out improvements before marketing the property, or avoid pressure to sell quickly at below-market value. The loan is typically repaid when the inherited property is sold.
If you're an executor or beneficiary looking to unlock funds tied up in an inherited property, AF Credit can provide fast, flexible probate bridging loans across England and Wales. We regularly lend against inherited residential property using desktop or full valuations where appropriate and can provide same-day indicative terms for suitable applications.
Contact AF Credit todayDisclaimer: Case study details have been anonymised to protect client confidentiality. All lending is subject to underwriting and credit approval is not guaranteed. Any property used as security may be repossessed if you do not repay your loan within the agreed term. AF Credit acts solely as a lender and does not provide financial advice.