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
- >o maximum age requirements
- Personal or Limited Company finance available
- Interest only mortgages available
- Ex-Pat & Foreign national mortgages available
- 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 property investors 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