Understanding the challenges of refurbishments during probate

When a loved one passes away, it’s common for their property to be left behind as part of the estate. Often, family members want to refurbish the property before selling it, especially if it's in poor condition. This can help increase the value of the home and attract more buyers, in turn, maximising their inheritance.

However, doing any work on a property during probate in the UK can be complicated, and families often face several legal and financial hurdles.

Access to Money is a Big Issue

“The biggest challenge people face is access to money,” explains Steve Gauke of Provira. “When someone dies, their assets, including their house and bank accounts, are usually frozen until the estate goes through probate.” 

“Probate is the legal process that confirms the will and gives the executors the authority to manage the estate.” 

“It can take anywhere from a few months to over a year to complete. During this time, any capital that might have been used for refurbishments is locked away, making it hard to carry out even basic repairs or improvements.”

Family Disputes and Tension

Refurbishing a property during probate can also lead to serious family disputes. Children or other beneficiaries of the estate might have different views on what should be done with the house. 

One person might want to spend money to refurbish it and increase its value, while another might want to sell it quickly and split the proceeds. 

Disagreements can get worse if one family member starts doing work without the others agreeing, or if there's no clear decision-maker. 

According to a 2023 report by Direct Line, over 12 million UK adults have had arguments with family over inheritance matters, and property is often at the heart of these conflicts.

Delays Can Cost Money

If a house is left empty and in poor condition, it may fall in value or take longer to sell. At the same time, the family still needs to pay for maintenance, insurance, and possibly council tax. Delays in getting work done or selling the house can increase these costs. 

Sometimes the property may even be uninhabitable, which makes it even harder to market without improvements.

Financial Solutions to Bridge the Gap

To get around the problem of locked-up capital, some families turn to financial products like bridging loans or inheritance advances. 

“Bridging finance is a short-term loan that can be secured against the property,” explains James Radford of london-based KP Finance. “It can provide quick funds for refurbishments before the estate is fully settled. The loan is usually repaid when the house is sold or when probate is completed.”

“Inheritance advances are another option. These are not loans, but rather early payouts of the expected inheritance from a specialist provider. They can be useful when beneficiaries need quick access to money for repairs, legal fees, or personal expenses.”

“These products come with costs and risks, so it’s important to get legal or financial advice before using them.”

Conclusion

Refurbishing a home during probate can help increase its value, but it often comes with challenges. Lack of access to funds, family disagreements, and legal delays can all get in the way. Financial products like bridging loans and inheritance advances can offer solutions, but they should be used carefully. Good communication and professional advice can make a difficult time a little smoother.

This article was written in cooperation with Daniel Tannenbaum