Multi-Unit Mortgages
Mortgages for blocks of flats
- 80% Loan to Value (LTV) mortgages available
- 100% Loan to Value (LTV) available with additional security
- No Minimum Income Required
- No Maximum Age Requirements
- Personal or Limited Company finance available
- Interest-Only Mortgages Available
- Ex-Pat & Foreign National Clients for UK Properties
- Second Charge Finance Available
Multi-Unit Finance Explained
In the context of multi-unit finance, the focus is on properties that may contain more than one dwelling or unit but are financed under a single loan or financing arrangement. This can be especially important for Landlords looking to scale their portfolios or finance larger developments.
A Multi-unit typically means a block of flats on one freehold title. It can be simpler, easier and more cost-effective to get one mortgage as opposed to getting several different mortgages on the same property. Blocks of flats range anywhere between 2 flats anywhere up to 100+ flats or more on a single Freehold Title
How Multi-Unit Finance Works?
Loan Structure:
When applying for multi-unit finance, the borrower typically presents the property as a whole (with multiple units) and applies for a loan based on the total value and income potential of the property.
Property Valuation:
A professional Redbook Valuation is normally required, where the lender will assess the potential rental income from each unit and the overall condition of the property.
Cash Flow Consideration:
Since multi-unit properties can produce multiple streams of rental income, lenders often consider the property’s overall cash flow as part of the assessment process.
So why choose a Multi-Unit Mortgage
Renting out long term:The number one reason for a Multi-unit mortgage is if you plan on keeping the flats for renting out long term.
Lenders Exposure Limits:You do not encounter issues with buy to let lenders who will have exposure limits meaning they will only accept a 40% share of the block. For example in a block of 12 flats, a traditional buy to let lender will not accept anymore than 4 flats (40%). A Multi-unit lender will be able to lend against all 12 flats and will only require the freehold of the building.
Simplicity:You don't need to go to the expense of splitting the titles which could save you thousands of pounds.