What is a multi-unit freehold? (MUFB’s)
Multi unit freehold blocks, commonly referred to as MUFBs, can represent great opportunities for investors with scope for profitable rental yields. Not to be confused with Houses of Multiple Occupation or HMOs, these multi unit rentals are typically one property split into self contained flats under one freehold title.
The main characteristics of a multi unit freehold block (MUFB) are:
- One freehold property split into flats with no individual leases or, albeit not as commonplace, a row of terraced houses under one freehold title
- Can be conversions or purpose built
- Each property is completely self contained with its own kitchen and bathroom
Mortgages for a multi unit freehold block (MUFB), sometimes referred to as multi unit buy to lets or multi unit let mortgages are limited in their availability, especially when compared to buy to let mortgages for HMOs or regular single occupation properties however, there is still an appetite from some lenders to assist. It’s just about knowing where to look which is where our expert advisers can help.
What is the criteria for a multi unit let mortgage?
- Typically, maximum loan to value is 75% however on occasion up to 80% lending could be obtained
- Available to individuals or limited companies
- Experienced and first time landlords accepted but typically not first time buyers
- Usually restrictions are applied to the maximum number of units in each freehold property however unlimited options may be available in certain circumstances
- Lending may still be available on the freehold property when some flats have their own individual leases
- Purchase and mortgage available
- Interest cover ratio (ICR) usually based on total rentable value
How to find a buy to let mortgage for your multi-unit property?
Finding the most appropriate and best matched mortgage for your circumstances for a multi unit freehold block (MUFB) can represent itself as a very difficult task but, with the right guidance extremely competitive rates could still be available to you. If interested in finding out your possible options, please contact one of our trained MUFB mortgage advisers today who will be more than happy to help.