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The HMO Mortgage Broker
Multi Unit Freehold

Multi Unit Analysis Calculator

Cashflow, yield and rental cover for a multi-unit freehold block bought on one title.

This calculator shows the monthly cashflow, net yield and stressed rental cover of a freehold block of self-contained units, and compares the price with the sum of the unit values if you enter them. It illustrates typical lending criteria and is not a lending decision or a valuation.

Your figures

A freehold block of self-contained flats or units on one title, bought and financed as a whole.

The block

Monthly. Block total £4,500 a month

Share of gross rent: management, voids, repairs, insurance, communal areas

Optional. What the flats might fetch sold one by one; leave at £0 to skip

Purchase and finance

Loan £487,500

Typical 5-year HMO fixes: 4.5% to 6.4%

Your results

Net monthly cashflow
£1,141
Net yield 6.23% on the purchase price
Gross rent
£54,000 a year
Operating costs (25%)
-£13,500
Interest (£487,500 at 5.5%)
-£26,813
Gross yield
8.31%
Rental cover at 5.5%
201%

Rental cover of 201% is above the typical 125% lenders look for at a 5.5% stress rate.

Interest only, before tax and purchase costs. Typical specialist HMO lending criteria, not an offer or a lending decision. Each lender sets its own rental cover, stress rate and loan-to-value limits. A lender's valuer may value the block as a whole rather than as the sum of the units.

Illustrative figures only, based on the numbers you enter. Not a mortgage offer.

How we calculate Multi-Unit Freehold Analysis

Methodology and data sources, updated October 2026

Formulas

Annual gross rent
Number of units × Average rent per unit × 12

All units let for the full year.

Net monthly cashflow
(Annual gross rent - Operating costs - Annual interest) ÷ 12

Operating costs = Annual gross rent × Operating costs %. Annual interest = Loan × Interest rate, on an interest-only basis. Before tax.

Loan
Purchase price × Loan to value %

The loan is sized on the price you enter.

Net yield
((Annual gross rent - Operating costs) ÷ Purchase price) × 100

Yield after operating costs, before finance and tax.

Rental cover at stress
(Annual gross rent ÷ (Loan × 5.5%)) × 100

Compared with a typical 125% requirement. Lenders set their own stress rate and cover level.

Break-up value difference
Sum of individual unit values - Purchase price

Only shown when you enter the unit values. No discount or premium is applied.

Data sources

  • Yes:Your own rent, cost, price and unit value figures
  • Yes:Typical specialist HMO lending criteria from specialist lender and broker tables, checked October 2026:75% maximum loan to value, 5.5% stress rate, 125% rental cover
  • Yes:Indicative HMO rate book, September 2026 (5-year fix pay rates 4.5% to 6.4%)

Key assumptions

Default loan to valueA common ceiling for HMO and MUFB lending; some lenders cap lower
75%
Default interest rateTypical 5-year HMO fix pay rate
5.5%
Stress rateRate used for the rental cover test
5.5%
Rental cover benchmarkLimited company and basic-rate borrowers; higher-rate individuals typically 145%
125%
Repayment basis
Interest only
Operating costsManagement, voids, repairs, insurance, communal areas and service costs
% of gross rent
Purchase costs and tax
Not included