For many family offices, prime residential property represents a significant proportion of total net worth. London townhouses, Parisian apartments, Côte d’Azur villas, and Monaco residences are often held mortgage-free, reflecting a long-standing preference for capital preservation, privacy, and intergenerational security.
However, in 2025, holding large volumes of unleveraged residential equity is increasingly viewed as inefficient. Global investment opportunities move quickly, and liquidity trapped in property can limit a family office’s ability to act decisively across private equity, structured credit, operating businesses, or strategic acquisitions.
Rather than selling assets, sophisticated families are increasingly using prime residential property as security to unlock global investment liquidity. This approach allows capital to be released while maintaining ownership, control, and long-term exposure to core property holdings.
Willow Private Finance works with family offices, private banks, and specialist lenders to structure these facilities carefully—ensuring liquidity supports broader investment objectives without introducing unnecessary risk or complexity.
This guide explains how prime residential assets are used as security in 2025, how lenders assess these structures, and why expert structuring is essential.
From a lender’s perspective, prime residential property sits at the top of the security hierarchy. Assets in established global centres such as London, Paris, Geneva, and Monaco are highly liquid, resilient in downturns, and supported by deep buyer demand.
For family offices, these properties are typically unencumbered, professionally maintained, and held for the long term. This combination makes them particularly attractive as collateral for liquidity facilities.
Crucially, lenders assess these assets not as lifestyle purchases, but as balance-sheet anchors. Prime residential property provides stable collateral that can support borrowing deployed far beyond the property market itself.
In 2025, private banks increasingly differentiate between speculative property exposure and legacy residential holdings. The latter are often viewed as defensive assets capable of supporting conservative, flexible lending structures.
The primary appeal of using residential property as security is optionality. Family offices can unlock liquidity without selling assets, triggering tax events, or disrupting long-term ownership structures.
Selling prime residential property is rarely efficient. Transactions can be slow, markets can be illiquid at the top end, and disposals may undermine long-term family strategy or succession planning.
By contrast, property-backed liquidity facilities allow capital to be accessed quickly and deployed globally—often within weeks rather than months—while preserving exposure to core holdings.
This approach is particularly attractive where liquidity is required temporarily or opportunistically, such as funding private equity commitments, bridging capital calls, or supporting short-to-medium-term investment strategies.
At a structural level, lenders provide facilities secured against one or more prime residential assets. These may be bilateral loans, revolving credit facilities, or bespoke liquidity lines embedded within a broader private banking relationship.
Borrowing is rarely maximised. Loan-to-value ratios typically range from 30% to 50%, even where assets are entirely unencumbered. The emphasis is on balance-sheet efficiency rather than leverage.
Facilities may be structured in a single jurisdiction or across multiple assets, allowing portfolio-level security rather than reliance on one property. In many cases, borrowing is raised in one jurisdiction and deployed internationally, subject to tax and currency considerations.
Importantly, these facilities are often interest-only, with flexible repayment terms designed to align with investment horizons rather than residential affordability metrics.
One of the defining features of these structures is that capital raised against residential property is rarely used for further property acquisition.
Instead, liquidity is deployed globally across private equity, venture capital, structured credit, operating businesses, or strategic acquisitions. In some cases, funds are used to recapitalise family enterprises or support intergenerational transitions.
Lenders are increasingly comfortable with this approach, provided the borrower profile is strong and overall leverage remains conservative. The focus is on asset quality, liquidity buffers, and governance rather than income generation.
This reflects a broader shift in how private banks view residential property—less as a consumption asset and more as a balance-sheet stabiliser capable of supporting wider investment activity.
While the concept is straightforward, execution varies significantly by jurisdiction.
In the UK, private banks offer the greatest flexibility, with a wide range of structures available for prime residential assets. However, valuation scrutiny has intensified, particularly for super-prime property, and lenders are increasingly cautious around source-of-wealth transparency.
France introduces additional complexity. While lender security is strong, notarial processes, documentation requirements, and tax structuring must be managed carefully, particularly where assets are held through non-French entities.
Monaco operates on a relationship-led model. Lending against residential property is often embedded within a broader private banking mandate, with conservative leverage but attractive flexibility for established clients.
Successful structures account for these differences and avoid forcing a single-jurisdiction solution onto a multi-jurisdiction portfolio.
When using residential property as security, lenders are not simply underwriting bricks and mortar.
Asset quality remains critical, but equal weight is placed on liquidity outside property, governance, and borrower intent. Family offices with diversified balance sheets and professional oversight are viewed very differently from borrowers relying solely on property values.
Lenders also assess how the facility will be used. Borrowing to support investment deployment or portfolio optimisation is generally viewed positively. Borrowing driven by cashflow stress or opaque objectives attracts greater scrutiny.
This distinction is central to why family offices can access flexible terms at conservative leverage levels.
Despite favourable lender appetite, risk management remains paramount.
Currency exposure must be considered where borrowing and deployment occur in different currencies. Hedging strategies should be integrated from the outset, not treated as an afterthought.
Facilities should also be structured with maturity alignment in mind. Short-term liquidity needs should not be funded with inflexible long-dated debt, and vice versa.
Finally, concentration risk should be avoided. Over-reliance on a single asset or lender can constrain future flexibility and limit strategic options.
Consider a family office holding an unencumbered £25 million London townhouse alongside a diversified global investment portfolio.
Rather than selling property to fund a private equity opportunity, a private bank facility is secured at 40% LTV against the London asset. The borrowing is structured as an interest-only facility with flexible repayment terms.
Liquidity is deployed into the investment opportunity, while the property remains fully under family ownership. No forced sale, no disruption to long-term planning, and no loss of exposure to prime residential markets.
This is increasingly how sophisticated families view residential property—as a liquidity anchor rather than a static asset.
As global markets remain volatile and opportunities become more time-sensitive, the ability to mobilise capital quickly will remain a competitive advantage for family offices.
Prime residential property will continue to play a central role in this strategy, not as a growth asset, but as a source of stability and collateral strength.
Lenders will remain selective, but for well-structured family offices, access to liquidity remains strong. The differentiator will be governance, structuring quality, and strategic clarity—not asset value alone.
Willow Private Finance advises family offices and UHNW clients on using prime residential assets as security for global liquidity.
We work independently across private banks and specialist lenders to structure facilities that preserve control, protect confidentiality, and align with wider investment and succession strategies.
Our expertise lies in complex structuring—ensuring property-backed liquidity supports your broader objectives without introducing unnecessary risk or rigidity.
Q1: Can residential property be used to fund non-property investments?
A: Yes. Many private banks allow residential assets to support liquidity deployed into global investments.
Q2: What LTV is typical for these facilities?
A: Most family offices borrow at 30–50% LTV to preserve flexibility and reduce risk.
Q3: Do lenders require income to support these loans?
A: Income is considered, but asset quality and overall balance-sheet strength are often more important.
Q4: Can multiple properties be used as security?
A: Yes. Portfolio-level security can improve pricing and flexibility.
Q5: Is selling property ever preferable?
A: In some cases, yes—but many families prefer liquidity without disposal to preserve long-term strategy.
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About the Author
Wesley Ranger is the Director of Willow Private Finance and has over 20 years of experience advising high-net-worth and ultra-high-net-worth clients on complex property finance. He specialises in private bank lending, portfolio-level structuring, and liquidity solutions for family offices with international asset bases. Wesley works closely with legal, tax, and investment advisers to ensure lending decisions support long-term balance-sheet strategy.
Important Notice
This article is for general information purposes only and does not constitute personal financial advice. Using residential property as security for borrowing involves legal, tax, and regulatory considerations that vary by jurisdiction and individual circumstance.
Mortgage availability, loan-to-value limits, and lending terms are subject to change and depend on detailed lender assessment. Always seek tailored advice before entering into any financial arrangement.
Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422). Registered in England and Wales.
