Multi Unit Property Mortgages

Are multi-unit freehold blocks an enticing option for landlords seeking enhanced returns? With the escalating financial demands associated with rental property management, an increasing number of landlords are exploring innovative avenues to optimize profitability.

Among these avenues, combined commercial and residential properties, houses in multiple occupation (HMOs), and multi-unit freehold blocks (MUFBs) have emerged as popular choices. These specialised buy-to-let properties boast the potential for higher rental yields compared to traditional single-lets, making them particularly appealing to seasoned landlords who prioritise their buy-to-let investments.

A multi-unit freehold block comprises a single freehold title property partitioned into multiple independent residential units. This could range from purpose-built blocks of flats to houses converted into flats or even a series of terraced houses. Unlike HMOs, where properties are rented out per room with shared amenities, MUFBs exhibit distinct characteristics:

• Each unit is fully self-contained, featuring its own entrance, bathroom, and kitchen facilities.
• Tenants hold Assured Shorthold Tenancy (AST) agreements for individual units.
• Shared amenities such as hallways, communal gardens, and parking areas may be present.

The landscape of the buy-to-let mortgage market continually evolves, offering a broader spectrum of options for complex property types. However, financing MUFBs remains a niche domain, with specialized products available primarily through dedicated lenders, often accessed via independent mortgage brokers.

As an independent, whole-of-market mortgage broker, we provide access to specialized multi-unit freehold block mortgage lenders, ensuring a tailored approach to meet your financial needs. Backed by over 75 years of combined specialist experience, our team delivers personalised, professional service at every step of the process.