For many high-net-worth (HNW) families, property is far more than an asset class — it is the physical embodiment of legacy. Across Britain’s countryside and prime city postcodes, family estates represent continuity, heritage, and generational identity. But as wealth transitions from one generation to the next, so too does the challenge of managing it.
In 2025, financing multigenerational estates is no longer simply about securing the lowest rate. It’s about balancing tax efficiency, long-term governance, and liquidity planning within an increasingly complex regulatory landscape.
With inheritance tax thresholds frozen, and intergenerational wealth transfers accelerating, private banks have become central to how families manage succession and estate sustainability. The focus has shifted from static ownership to dynamic estate management — integrating family investment companies, discretionary trusts, and private banking facilities that enable estates to evolve rather than stagnate.
At Willow Private Finance, we specialise in structuring bespoke lending for family estates — from refinancing heritage properties to funding diversification projects, inheritance settlements, or succession transfers. Our work sits at the intersection of property finance, wealth preservation, and strategic governance.
For further reading, see Trusts and Property Finance in 2025: Lender Attitudes, Risk Appetite, and What’s Changing and Vineyard & Agricultural Estate Finance in 2025.
The landscape for intergenerational wealth has shifted dramatically over the past decade. The UK now faces its largest-ever transfer of private wealth, estimated at more than £5 trillion over the next 20 years. Much of this value is concentrated in property — from London townhouses to landed estates.
Yet the taxation environment has become more demanding. With the Labour government maintaining inheritance tax (IHT) thresholds and tightening exemptions, families are increasingly exploring proactive financial planning. The goal is not just to preserve wealth but to ensure estates remain functional, income-generating, and cohesive across generations.
Private banks have responded with renewed interest in family lending structures, offering flexible facilities that align with estate liquidity needs and intergenerational objectives. These include long-term interest-only facilities, revolving credit lines for trust-owned properties, and capital-raising options for inheritance settlements or diversification projects.
In parallel, there’s been a rise in family investment companies (FICs) as a preferred vehicle for estate ownership. FICs allow structured control, reduced inheritance exposure, and a tax-efficient framework for lending and reinvestment.
The net result? Financing has become an active component of succession planning — not an afterthought.
Estate finance operates differently from individual residential lending. Private banks view multigenerational structures through a lens of governance and longevity rather than personal affordability.
The first step is understanding ownership. Many estates are held through trusts, partnerships, or FICs, which require lenders to assess both the structure and the underlying beneficiaries. Each introduces its own legal and tax nuances.
For trust-held properties, lenders evaluate trustee powers, beneficiary profiles, and trust deed provisions. They also verify compliance with anti-money laundering (AML) and “beneficial ownership” regulations. For FIC-owned estates, lenders assess company financials and shareholding arrangements, particularly where younger family members hold minority stakes.
Facilities are typically structured as long-term, interest-only loans, often linked to other family assets or investment portfolios. In some cases, cross-collateralisation enables families to raise liquidity from multiple holdings without fragmenting ownership.
Estate lending also supports generational transitions — providing liquidity for IHT payments, intra-family buyouts, or estate diversification projects such as eco-tourism, renewable energy, or agricultural redevelopment.
Crucially, lenders prioritise continuity. The property is viewed as an enduring family asset rather than a disposable one, and finance is designed accordingly.
In 2025, private banks focus on three key attributes when underwriting multigenerational estate finance: structure, governance, and stewardship.
Structure determines eligibility. Lenders must understand precisely who controls the property, how decisions are made, and what legal entities are involved. Simplicity is favoured, but well-managed complexity is acceptable when clearly documented.
Governance builds confidence. Banks seek transparency in how families manage their assets — whether through formal boards, appointed trustees, or professional advisors. Estates that demonstrate structured oversight are deemed lower risk.
Stewardship reflects commitment. Lenders are more comfortable when borrowers can evidence a long-term preservation mindset, backed by proper maintenance, insurance, and diversification.
Liquidity plays a vital supporting role. Families who maintain accessible reserves or investment portfolios alongside property assets can unlock stronger borrowing terms, as lenders view these as buffers against income volatility or capital expenditure.
For many lenders, these qualities are assessed through relationship management rather than automated underwriting — making the broker’s role central in articulating a family’s governance and financial discipline.
Despite growing lender sophistication, financing family estates remains highly nuanced. The first challenge is succession timing. Estate liquidity can be strained during generational transitions, particularly when inheritance tax liabilities crystallise before cash assets are realised.
Another issue is structural opacity. Complex ownership arrangements or offshore elements can deter lenders unless accompanied by full legal transparency. Family Investment Companies, while tax-efficient, still require comprehensive documentation to satisfy compliance teams.
Lender understanding also varies. Some private banks embrace multigenerational lending as part of broader relationship banking, while others limit exposure due to perceived succession risk. The availability of multi-decade lending remains limited to a small circle of institutions.
Lastly, emotional dynamics play a role. Family governance — how decisions are made and disputes avoided — is increasingly part of lender due diligence. Banks now expect evidence that family members share aligned financial objectives before approving large, multi-party facilities.
The most successful families treat estate finance as an evolving ecosystem rather than a static arrangement. Strategic actions include:
Willow Private Finance frequently collaborates with accountants and private client lawyers to ensure estate structures, lending, and tax strategies align seamlessly. For further insight, see Trusts and Property Finance in 2025.
The direction of travel for multigenerational finance is clear: longevity, sustainability, and integration. Private banks are extending loan maturities to match estate lifecycles, while sustainability-linked terms are becoming more common for rural and heritage estates.
The integration of estate lending with broader family-office services — investment management, philanthropy, and insurance — is reshaping how wealth is stewarded. Families who approach property as part of an interconnected portfolio will continue to outperform those treating it as an isolated asset.
For high-net-worth families, 2025 marks a turning point. The combination of tax pressure and financial innovation has made estate finance not just a tool of convenience, but a cornerstone of legacy strategy.
Willow Private Finance provides strategic, confidential advice to families managing multigenerational property holdings. Our expertise spans complex legal structures, private bank relationships, and high-value refinancing.
We work directly with trustees, family offices, and accountants to structure facilities that balance liquidity and control. Whether refinancing a country estate, raising capital for IHT, or integrating sustainability initiatives, Willow ensures lending supports — rather than jeopardises — family legacy.
Q1: Can trusts or family investment companies take out mortgages in 2025?
A: Yes. Many private banks lend to trusts and FICs, provided the structure is transparent and the beneficiaries or directors can provide guarantees where required.
Q2: How can families use finance to cover inheritance tax?
A: Structured lending can provide liquidity to settle IHT liabilities without selling assets, preserving estate continuity.
Q3: Do lenders assess family governance during underwriting?
A: Increasingly, yes. Lenders review governance frameworks, succession plans, and professional oversight as part of risk assessment.
Q4: What loan terms are available for estates?
A: Private banks offer long-term, interest-only, or multi-decade facilities tailored to estate stability and generational transfer plans.
Q5: Can sustainability initiatives improve lending terms?
A: Yes. Many lenders now incorporate ESG-linked pricing, rewarding estates that invest in renewable energy or biodiversity initiatives.
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About the Author
Wesley Ranger is the Director of Willow Private Finance and has over 20 years of experience in high-value, complex mortgage structuring. He specialises in private bank and intergenerational lending, helping families preserve and enhance wealth through intelligent estate finance.
Important Notice
This article is for general information purposes only and does not constitute personal financial advice. Mortgage product availability, eligibility, and rates depend on your individual circumstances and may change at any time.
Always seek tailored advice before committing to any financial arrangement.
Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422). Registered in England and Wales.
