For family offices and ultra-high-net-worth individuals, UK and French residential property often represents a significant concentration of long-term wealth. Prime homes in London, Paris, and the South of France are frequently held unencumbered, prioritising capital preservation, stability, and intergenerational planning over short-term returns.
At the same time, investment mandates have expanded. Family offices are increasingly active in private equity, direct operating businesses, private credit, infrastructure, and other non-property assets that require flexible, deployable capital. This creates a familiar tension: substantial wealth tied up in illiquid real estate, while attractive opportunities demand liquidity elsewhere.
In 2025, many family offices are resolving this mismatch by using UK and French property as collateral to support non-property investments. This is not speculative leverage. It is a deliberate balance-sheet strategy designed to unlock capital while preserving ownership of core real estate assets.
Willow Private Finance works closely with family offices, private banks, and specialist lenders to structure these facilities conservatively—ensuring property wealth supports broader investment objectives without compromising control, discretion, or long-term asset value.
Prime residential property in the UK and France remains one of the most stable forms of collateral available to lenders. While yields may be modest, long-term value resilience, deep buyer demand, and legal clarity make these assets particularly attractive in credit underwriting.
For family offices, this stability allows property to function as a balance-sheet anchor. Rather than selling assets to fund investments elsewhere, families can introduce modest leverage against retained property, converting dormant equity into deployable capital.
This approach also preserves optionality. By separating investment liquidity from asset ownership, family offices avoid forced sales during unfavourable market conditions and retain the ability to refinance, restructure, or deleverage over time.
Contrary to common assumption, lenders do not automatically resist property-backed borrowing used for non-property investments. In 2025, many private banks and specialist lenders are comfortable with this approach—provided objectives are clear and risk is appropriately managed.
Lenders focus less on the nature of the downstream investment and more on the integrity of the collateral, leverage discipline, and borrower profile. Facilities supporting diversified, professionally managed investment strategies are generally viewed more favourably than opaque or highly speculative use cases.
Clear articulation matters. Family offices that present a coherent investment rationale, supported by governance structures and liquidity planning, are far more likely to secure favourable terms than those treating borrowing as opportunistic capital extraction.
Facilities are typically structured as interest-only loans secured against one or more UK or French residential properties. Loan-to-value ratios are conservative, commonly ranging between 30% and 50%, depending on asset quality and jurisdiction.
In many cases, family offices use portfolio-level structures, allowing multiple properties to support a single facility. This smooths risk, improves flexibility, and may enhance lender appetite—particularly where assets vary in liquidity or location.
Facilities may include revolving elements, enabling capital to be drawn and repaid in line with investment cycles. This flexibility is particularly valuable for private equity commitments or phased capital deployment.
While UK and French property are often grouped together in family office portfolios, lenders assess them differently.
UK residential property benefits from a well-established lending framework, predictable enforcement processes, and deep international buyer demand. As a result, UK assets are often weighted more heavily in collateral calculations.
French property is equally financeable but introduces additional considerations. Lenders assess inheritance regimes, enforcement timelines, and ownership structures carefully, particularly where assets are held via companies or trusts.
In cross-border structures, lenders may apply different leverage limits to each jurisdiction, resulting in blended loan-to-value ratios across the portfolio.
Where borrowing is secured against UK and French assets, currency alignment becomes critical. Facilities may be denominated in sterling or euros, depending on asset mix and investment objectives.
Lenders stress-test adverse currency movements, particularly where liabilities and income streams are mismatched. In some cases, hedging strategies are required to manage FX exposure.
Family offices that proactively address currency risk tend to achieve smoother execution and greater structural flexibility.
Borrower profile is central to lender decision-making. Facilities supporting non-property investments require strong governance, particularly where capital is deployed into illiquid or higher-risk strategies.
Lenders expect clarity on decision-making authority, investment oversight, and liquidity planning. Informal or fragmented governance structures materially weaken credit cases, regardless of asset quality.
For family offices, this discipline often aligns naturally with existing governance frameworks—but it must be documented and communicated effectively.
One common mistake is underestimating the importance of narrative. Borrowing against property to fund external investments must be framed as part of a coherent strategy, not a reactive liquidity grab.
Another pitfall is excessive leverage. While property values may support higher borrowing, conservative LTVs preserve flexibility and reduce refinancing risk—particularly important where downstream investments are illiquid.
Finally, poor sequencing remains an issue. Engaging lenders before aligning legal, tax, and governance considerations often leads to avoidable delays or compromised terms.
Willow Private Finance specialises in complex, high-value property-backed lending for family offices and UHNW clients. We work independently across private banks and specialist lenders to structure facilities that align property wealth with broader investment strategies.
Our role extends beyond sourcing finance. We coordinate with legal and tax advisors to ensure borrowing supports long-term objectives, preserves asset integrity, and remains robust across market cycles. Whether funding private equity, operating businesses, or alternative investments, our focus is on disciplined leverage and durable structures.
In 2025 and beyond, UK and French residential property will continue to play a central role in family office balance sheets—not just as stores of value, but as strategic funding tools.
When used intelligently, property-backed borrowing allows families to participate in broader investment opportunities without sacrificing long-held assets. The key lies in conservative structuring, clear governance, and experienced advice.
Q1: Can UK and French property be used to fund non-property investments?
Yes. Many lenders allow property-backed borrowing to support external investments, provided leverage and risk are managed conservatively.
Q2: What loan-to-value ratios are typical in 2025?
Most family offices borrow at 30–50% LTV depending on asset quality and jurisdiction.
Q3: Do lenders restrict how released capital is used?
Some lenders impose restrictions, but many focus on borrower profile and collateral quality rather than specific investment types.
Q4: Is currency risk a concern in cross-border property-backed lending?
Yes. Lenders assess FX exposure carefully and may require hedging where mismatches are material.
Q5: Are portfolio-level structures common?
Yes. Using multiple properties to support one facility often improves flexibility and execution.
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About the Author
Wesley Ranger is the Director of Willow Private Finance and has over 20 years of experience advising family offices and ultra-high-net-worth individuals on complex property finance. He specialises in structuring property-backed facilities that support diversified investment strategies, including private equity, operating businesses, and cross-border portfolios involving UK and French assets.
Important Notice
This article is for general information purposes only and does not constitute personal financial, legal, or tax advice. Using property as security for non-property investments involves financial risk and may not be suitable for all borrowers.
Lending availability, eligibility, and terms depend on individual circumstances and lender criteria and may change at any time. Independent legal and tax advice should always be obtained before proceeding.
Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422). Registered in England and Wales.
