A method for frequency-limited balancing of the unsteady vortex-lattice equations is introduced that results in compact models suitable for computational-intensive applications in load analysis, aeroelastic optimisation, and control synthesis. The balancing algorithm relies on a frequency-domain solution of the vortex-lattice equations that effectively eliminates the cost associated to the wake states. It is obtained from a Z-transform of the underlying discrete-time equations, and requires no additional geometrical or kinematic assumptions for the lifting surfaces. Parametric reduced-order modelling is demonstrated through interpolation over (a) projection matrices, (b) state-space realisations and (c) transfer functions, which trade accuracy, robustness and cost. Methods are finally exemplified in the dynamic stability of a T-tail configuration with varying incidence. Numerical studies show that a very small number of balanced realisations is sufficient to accurately capture the unconventional aeroelastic response of this system, which includes in-plane kinematics and steady loads, over a wide range of operation conditions. Nomenclature γ i interpolation weight for design parameter p i Γ vector of circulation strengths κ i integration weight at frequency k i K number of integration points, k i