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Buy to let mortgages for Multi-Unit Freehold Blocks

A beginner’s guide to MUFBs

Getting started with Multi-Unit Freehold Blocks

A Multi-Unit Freehold Block (MUFB) is a property that contains or is split into individual flats or units held on one single lease. The main draw to investing in a MUFB is the high rental yields, but plenty of other benefits come with this investment type, such as a constant high demand from tenants and a reduced risk of void periods.

Below, we answer the most frequently asked questions about MUFBs to help you get started.

Frequently asked questions about MUFB mortgages...


What is a multi-unit property?

As mentioned, a MUFB is a property that has multiple flats or units on one single lease. Some characteristics of MUFB properties include:

  • Separate entrances for each resident/household
  • Some also have common areas that all residents/households have the right to use, such as a hallway or garden
  • Multiple houses, each with its own AST agreement.
  • Private areas for each resident/household, into which no one else has a right of access


What is an example of a multi-unit freehold block?

Some examples of the types of properties that are classed as MUFBs are:

  • Purpose-built blocks of flats
  • Houses converted into flats
  • Several houses all held under one freehold title


How do you finance a multi-unit property?

With the right experience and deposit, it can be relatively straightforward to finance a MUFB. However, navigating the market to find the right lender and the most cost-effective rate to suit your individual needs can be challenging. Therefore, it’s important to discuss your property finance plans with a broker who can advise you on the rates available to you, support you with your mortgage application, and ensure a stress-free process.


How much can I borrow for my MUFB mortgage?

As with other types of buy to let mortgages, you will typically need a deposit of at least 25%. Some lenders offer up to 80% loan to value (LTV), but mortgage rate pricing is typically more competitive at 75% LTV.


Which lenders offer on multi-unit freehold blocks?

Approximately half of all buy to let lenders offer mortgages on MUFBs. However, the market can be challenging to navigate as each lender has its own criteria. Working with one of our experienced brokers is essential to accessing the right deal for you.


What experience do I need to finance a multi-unit freehold block?

Lenders view MUFB properties as a complex investment type due to the multiple units on one lease and the multiple ASTs in place. Consequently, lenders will want to see previous letting experience on your mortgage application, with at least one year’s experience as a landlord. More risk-averse lenders have tighter criteria around your experience levels than others, as this will act as reassurance of your capability and, therefore, the security of the deal. One of our experienced mortgage brokers will be able to point you toward the best lender to suit your circumstances.


Are mortgages for multi-unit freehold blocks more expensive? 

You will find that mortgage rates for MUFBs are slightly more expensive than for standard buy to let properties. You can typically expect mortgage rates to be approximately 0.5-1% higher for MUFBs, but it’s worth bearing in mind that the higher rental yields they offer should more than cover these extra costs.

Download our latest
FAQ guide

MUFBs are a popular choice for landlords looking to maximise their portfolio profits. Download our latest guide for everything you need to know about financing multi-unit freehold blocks. 

Download our latest FAQ guide

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