Multi-unit freehold block (MUFB) mortgages
Got a client with a multi-unit freehold block of six or more? We’ve got the mortgage to match. For smaller blocks, a Limited Company Buy to Let is usually the better fit.
Key highlights
Loans from £500,000 to £20 million
Loan to value up to 75%
Fixed and variable rates
Loan terms from 5 to 25 years
Capital and interest, part and part and interest only.
Multi-Unit Freehold Block (MUFB) mortgage rates
0.25% discount
On the rates shown. For small to medium warehouses, light manufacturing and industrial units. Get in touch to find out more.
Multi-Unit Freehold Block (MUFB) mortgage criteria
Lending criteria
Type of borrower
Limited companies.
Limited liability partnerships (LLP).
Trading businesses.
New and existing special purpose vehicles (SPVs).
Eligibility
At least 12 months letting experience.
Company registered in England and Wales.
All the shareholders and directors must be UK residents.
The company does not need to have a business account with us.
Capital raising purposes
Purchasing another property.
BTL operational purposes.
Property improvements (not including structural or development).
Affordability
Gross rental Income Cover Ratio (ICR) of 125% at the product stress rate.
Must meet 100% Debt Service Cover Ratio (DSCR) if on capital and interest repayment.
Maximum loan per block or property
£10 million.
Maximum committed term
Up to £2 million: 25 years.
Over £2 million: 10 years.
Asset criteria
Type of property
Must meet Decent Home Standards and be:
6 or more units in a flat or house
on one freehold title or individual long leaseholds.
If the property has an Houses in Multiple Occupation licence, our HMO mortgage will be a better fit.
Size
Gross Internal Area (GIA): at least 31 sqm.
Gross External Area (GEA): at least 35 sqm.
Minimum value per property or unit:
£135,000.
EPC rating
A to C (or D/E with plan to get to C).
Legal charge
A first legal charge is required.
Personal guarantee
£175,000 or 10% - whichever is higher, from one or more directors.
Valuation
To be completed by a YBS panel valuer and lending based on the lower of:
purchase price
open market vacant possession
investment valuation.
Consideration will be given for block/single investment value and aggregate value of the individual units – depending on number of units.
Download our Guide to buy to let fees and charges (PDF, 182KB)
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