For many high-net-worth and ultra-high-net-worth individuals, wealth is not measured in bank balances but in the quality of assets they hold. Prime property, shareholdings, land, and business interests often represent enormous value, but that value is illiquid. Unlocking it without a sale has always been a hallmark of sophisticated wealth management.

In 2025, refinancing is no longer a simple exercise in chasing a lower rate. It has evolved into a tool for strategic liquidity, the ability to access capital while maintaining ownership and control. For private borrowers, it’s a way to reallocate wealth, fund new ventures, or strengthen financial flexibility without sacrificing prized assets.

The Shift in Refinancing Strategy

In recent years, rising rates and more conservative bank appetites have changed how borrowers think about refinancing. Where once it was a reaction to better pricing, today it’s an integral part of active balance sheet management.

Private credit funds, family offices, and boutique lenders have transformed the market by offering more bespoke approaches to leverage. They understand that high-value assets, even if non-income-producing, can safely underpin substantial facilities when structured intelligently.

Borrowers who once relied exclusively on private banks are now engaging a broader mix of lenders, blending institutional-grade terms with private flexibility. This evolution has opened the door for refinancing to be used as a growth strategy, not merely a cost-saving one.

Refinancing as a Strategic Wealth Tool

The motivations behind refinancing are increasingly nuanced. For some, it is about raising capital to seize an investment opportunity. Others use it to restructure debt, simplify complex loan arrangements, or extend maturities before facilities come due. Many high-net-worth families use refinancing as part of estate planning or intergenerational wealth transfer, drawing liquidity from property portfolios to fund trusts or redistribute capital efficiently.

One of the most compelling reasons, however, remains the ability to release liquidity without selling. In uncertain markets, selling high-value assets can mean sacrificing long-term appreciation or triggering tax liabilities. Refinancing offers a middle path — retaining ownership while unlocking the value tied up within.

What Assets Are Suitable for Refinancing?

While property remains the cornerstone of refinancing, today’s lenders are increasingly open to a broader collateral base. Prime residential homes, investment portfolios, hotels, and mixed-use developments are common, but refinancing may also extend to land with planning potential, or even to valuable non-property assets such as company shares or luxury holdings when supported by professional valuation.

The key for any lender is credibility and liquidity. They assess the quality of the asset, the borrower’s wider balance sheet, and the realism of the exit strategy. Borrowers who can present a clear rationale for the transaction, supported by professional advice and valuation evidence, will typically secure the most competitive terms.

What Lenders Look for in 2025

Lenders assessing high-value refinancing opportunities now focus less on income multiples and more on overall wealth composition and management. The quality of the asset, its liquidity profile, and the borrower’s financial coherence carry as much weight as personal earnings.

Equally, a credible exit strategy is crucial. Lenders want to see how and when repayment will occur — whether through asset sale, future refinance, or natural liquidity events. Borrowers who can articulate a clear path of repayment tend to achieve more favourable terms.

Track record also matters. Demonstrating a history of managing significant assets responsibly can make the difference between a cautious offer and a confident partnership. The relationship element — often overlooked — remains central to private lending.

Private Credit vs. Private Banking

When refinancing high-value assets, choosing the right lender is often as important as structuring the right deal.

Private banks typically offer lower rates and longer-term facilities, but they demand transparency, documented income, and a holistic relationship — often requiring assets under management to be held with them. For clients who value discretion, speed, or flexibility, private banking can sometimes feel restrictive.

Private credit lenders, by contrast, operate with greater agility. They can accommodate complex ownership structures, multiple jurisdictions, or assets that are not producing immediate income. Their rates are higher, but they compensate with swift decision-making and tailored underwriting.

For many sophisticated borrowers, the solution is hybrid: maintaining core facilities with a private bank for stability, while using private credit for tactical liquidity or opportunistic refinancing.

Structuring Refinancing the Right Way

Refinancing large or complex assets demands precision and preparation. The process should begin with an updated professional valuation and a transparent presentation of ownership structures — whether through SPVs, trusts, or partnerships.

A clear purpose statement strengthens the case: lenders want to know whether the funds will be used for investment, diversification, or debt consolidation. Equally important is professional coordination. Tax advisers, solicitors, and finance specialists should align to ensure the structure is both compliant and efficient, especially when cross-border elements are involved.

The strongest refinancing outcomes come from borrowers who treat the process as part of long-term wealth planning rather than a short-term reaction to market movement.

Refinancing in a Changing Market

In 2025, the smartest private borrowers view refinancing as a form of strategic liquidity management. They understand that debt, when structured carefully, can enhance overall financial stability and optionality. By unlocking capital without selling core holdings, they preserve long-term appreciation, fund new opportunities, and manage cash flow efficiently.

This approach is not about leveraging for the sake of leverage — it’s about control. It turns illiquid wealth into a living, usable resource, capable of responding to changing market conditions or emerging investment opportunities.

Done correctly, refinancing can be the difference between reacting to market cycles and shaping them.

How Willow Private Finance Can Help

At Willow Private Finance, we specialise in arranging bespoke lending solutions for high-value property, development, and investment transactions. Our role is to bring clarity and precision to complex finance requirements, combining market expertise with access to private banks, specialist lenders, and family offices across the UK and internationally.

Whether refinancing existing assets, releasing liquidity, or structuring debt for a new acquisition, we focus on delivering outcomes that align with each client’s long-term financial strategy.

Our approach is discreet, strategic, and relationship-led, ensuring every facility is structured with care, negotiated intelligently, and executed with confidence.

Frequently Asked Questions

1. Why refinance instead of selling?
Refinancing allows asset owners to release liquidity while retaining ownership, avoiding capital gains tax and preserving long-term growth potential.

2. What assets can be refinanced?
Prime property, commercial buildings, land, and even valuable non-property assets like shares or art can be refinanced, provided they are professionally valued and appropriately structured.

3. Are private lenders more flexible than banks?
Private lenders tend to focus on the quality and liquidity of the asset rather than traditional income metrics. This often results in faster, more adaptable facilities for complex borrowers.

4. How much can typically be released through refinancing?
Depending on the lender and the asset, leverage typically ranges from 50% to 70% loan-to-value, with higher levels possible where multiple assets are offered as security.

5. Is refinancing suitable for non-income-producing assets?
Yes, provided the overall structure supports the loan and a clear exit strategy exists. Specialist lenders frequently finance land, development sites, and other illiquid assets.

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