Multi Unit Freehold Mortgages

What is a multi-unit freehold block? 

A multi-unit freehold block (MUFB) is a single freehold property divided into individual units with no separate leases. It can also apply to situations like a succession of terraced residences with the same title.

Multi-unit freehold blocks (MUFBs) can be a smart investment option since they provide added protection by decreasing your exposure to rental voids, and they normally provide a higher income than a single residence buy to let property.

An MUFB is not to be mistaken with a home of multiple occupations (HMO), which will have shared facilities. Instead, a MUFB will feature self-contained flats with their own kitchen and bathroom.

Obtaining a multi-unit lease mortgage can be tough due to the fact that it is a somewhat specialized section of the buy to let industry, but it is definitely achievable for most. It’s simply understanding where to look for a multi-unit buy-to-let mortgage, which is sometimes referred to as a multi-unit buy-to-let mortgage. Knowing a few fundamentals can also be beneficial.

  1. Usually available up to a maximum of 75 percent of the property value or purchase price, although up to 80 percent may be attainable on rare occasions.
  2.  First-time landlords (FTLs) are usually eligible, whereas first-time buyers are not (FTBs)
  3.  While the number of units in each freehold property is normally limited, it is feasible to acquire financing for an unlimited number of units.
  4. Loans are available for individuals or limited organisations to own.
  5. Repayment options include interest-only or capital-and-interest repayment.
  6. The interest cover ratio (ICR) is usually calculated based on the total rentable value of the property.
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