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Owning a valuable property in France while lacking accessible cash is a common situation, and it has a solution. If you are a tax resident in France, a mortgage-backed loan lets you borrow up to 70% of your property value without selling it. You keep full ownership. PraxiFinance, specialist in property-backed finance in France since 1990, structures the file and presents it to its partner banks.
What "property rich but cash poor" means
The expression describes a mismatch between net worth and accessible cash. You may own a property worth 1,500,000 euros and still struggle to fund a large expense without selling investments or disposing of the asset itself.
Real estate is inherently illiquid. Unlike financial securities, it cannot be partially sold overnight, nor converted into cash without planning. This structural rigidity is why financially disciplined, asset-rich households encounter liquidity pressure.
It is not a failure of wealth creation. It is a question of wealth organisation.
Eligibility criteria
You are eligible for a mortgage-backed loan if all of the following apply.
You are a tax resident in France and you live in France.
Your property is located in metropolitan France and is worth at least 300,000 euros.
You want to borrow at least 100,000 euros, up to 70% of the property value.
Your household income is at least 4,000 euros per month, and at least three times the future monthly repayment.
The property is held in your own name. Properties held through an SCI are not eligible.
An important point about income
This is where many owners are surprised. A valuable property does not replace income. The property secures the loan, but a partner bank will always verify that you can service the monthly repayment.
Being property rich is not, on its own, sufficient. If your income is genuinely low and your property is your only resource, a mortgage-backed loan will not be granted. In that case, if you are selling your property, a deferred-price sale may apply, since it is assessed on the property alone. See the deferred-price sale simulator.
Rates, fees and examples
Rate 5.7% per year for an amortising loan, up to 25 years. Arrangement fee 8.5% of the amount borrowed.
Property worth 300,000 euros, loan of 100,000 euros over 10 years. Monthly repayment 1,095 euros. Arrangement fee 8,500 euros, so you receive 91,500 euros.
Property worth 500,000 euros, loan of 150,000 euros over 20 years. Monthly repayment 1,049 euros. Arrangement fee 12,750 euros, so you receive 137,250 euros.
Property worth 1,000,000 euros, loan of 200,000 euros over 25 years. Monthly repayment 1,252 euros. Arrangement fee 17,000 euros, so you receive 183,000 euros.
See borrow against property in France for the full mechanism.
Why this situation is increasingly common in France
Prime French real estate has appreciated substantially over recent decades, particularly in internationally sought-after locations. Owners who purchased years ago hold significant unrealised gains.
As owners move into retirement, income declines while property remains the dominant asset. Many households discover that an outsized share of their wealth sits in a single property, creating exposure without flexibility.
See unlock property wealth in France and using property to fund retirement in France.
The hidden cost of illiquid wealth
While property provides stability, excessive capital immobilisation quietly introduces vulnerability. Owners find themselves forced into suboptimal decisions simply because their wealth cannot be accessed efficiently.
They sell investments during unfavourable market cycles. They accept discounted offers on their property. They delay important projects. Illiquidity rarely feels urgent, until it suddenly does.
See need cash urgently in France and get cash from property in France.
Borrowing or selling
Selling converts wealth into cash but eliminates future participation in the asset. It is irreversible. Borrowing preserves ownership while activating financial potential.
The right choice depends on your time horizon and your broader wealth allocation. If you have already decided to sell and simply need funds before completion, see what to do if your property is not selling in France.
When owners typically unlock property wealth
To assist children financially. To settle an inheritance or a divorce. To cover a tax liability. To fund renovation or a business. To rebalance a portfolio overexposed to a single asset. To bridge the purchase of a new property before the current one is sold.
These are deliberate decisions, not reactive ones.
Avoiding over-leverage
Accessing equity should strengthen your financial resilience, not compromise it. The goal is not maximum borrowing. This is precisely why income is assessed alongside property value: a loan you cannot service is not a solution.
See safe equity release in France.
If you live abroad
If you are domiciled abroad, both fiscally and physically, borrowing against your French property is not available to you. French banks lend against French property to French tax residents. Foreign banks do not lend against foreign assets. No amount of documentation changes this.
There is, however, one solution built for exactly this situation.
If you are selling your French property, or intend to sell it, a deferred-price sale lets you receive an advance now rather than waiting for a buyer. The property is sold to an investor at an agreed price below market value, and you receive the funds immediately. When the property is resold on the open market, you receive the difference between the resale price and the initial price, less the investor's fee.
It is assessed on the property, not on your income. Your country of residence is not an obstacle. A deferred-price sale can also be structured on a property held through an SCI, unlike a mortgage-backed loan.
Eligibility: the property is in metropolitan France and worth at least 300,000 euros, held in your own name or through an SCI, and you are selling or intend to sell.
See non-resident mortgage in France and the deferred-price sale simulator.
Can I use a property held through an SCI?
Not for a mortgage-backed loan. Properties held through an SCI are eligible for a deferred-price sale.
About PraxiFinance
PraxiFinance has specialised exclusively in property-backed finance since 1990, with offices in Paris and Nice. The firm is registered with ORIAS under number 13005512 and operates within the regulatory framework of the ACPR.
It processes more than 4,000 financing requests per month and publishes the only recurring barometer of the French property-backed lending market. It is regularly cited as a market reference by Les Echos, La Tribune, Le Monde and BFM. See best equity release companies in France.
Call +33 1 85 09 70 40 to check your eligibility.
FAQ
What does "property rich but cash poor" mean?
Owning valuable real estate while lacking easily accessible liquidity.
Do I need to sell my property to access cash?
No. A mortgage-backed loan lets you borrow up to 70% of the value while keeping full ownership.
My property is valuable but my income is modest. Am I eligible?
Not necessarily. Your household income must be at least 4,000 euros per month and at least three times the monthly repayment. Property value alone is never sufficient.
How much can I borrow?
Up to 70% of the property value, with a minimum of 100,000 euros and a minimum property value of 300,000 euros.
What is the interest rate?
5.7% per year for an amortising loan.
Can I use a property held through an SCI?
Not for a mortgage-backed loan. Properties held through an SCI cannot be used as security for this type of financing. A deferred-price sale, however, can be structured on a property held through an SCI. If your property is held this way and you are selling, this route remains open to you.
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