Low-cost multi-unit mortgage for an older landlord

Area
Kent
Capital Raised
£500K

The higher yields on HMO and multi-unit rental properties can encourage lenders to take a bigger bite of the pie in the form of fees and rates. But it is still possible to source very affordable finance, with the flexible terms you might be looking for.

The Scenario

Our client was looking to add to his BTL portfolio a substantial freehold property that had been subdivided into five flats. He intended to rent out the flats, with a view to possibly selling on one or more of them at a later date.

First of all he needed to get retrospective planning permission from the local council. The conversion had been done some years earlier, and the council were willing to approve the subdivision, but as four flats rather than five.

The sums still worked for our client, but there were a couple of other issues to resolve. He was 72, and his wife is of a similar age, which narrows the field of available finance. And he wanted three owners listed jointly as tenants-in-common: himself, his wife and their daughter.

The Solution

He was only looking for medium-term finance, and then might consider refinancing or selling. We identified a lender who would offer an excellent five-year fix on an eight-year Multi-Unit Freehold Block (MUFB) mortgage, with a fixed set-up fee.

(Fees and rates for multi-unit mortgages tend to be better than for HMO mortgages, reflecting the greater security for the lender: if necessary the units can be sold separately to recoup the lending.)

And they were willing to have three tenants-in-common (most HMO lenders won’t consider more than two).

We’re now looking at the refinance options for some of the other properties in his portfolio.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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