Multi Unit Freehold Mortgages

Multi-Unit Freehold HMO mortgages finance freehold properties that contain multiple self-contained units, each capable of generating independent rental income.

These properties might include converted houses with separate flats, purpose-built blocks with multiple units, or mixed-use buildings combining residential and commercial space.

Unlike leasehold properties, freehold ownership provides complete control over the building and land, allowing for future development opportunities and avoiding ground rent obligations.

Multi-unit freehold properties offer excellent diversification, as multiple income streams reduce the impact of any single void period.

The financing considers the combined rental income from all units, often resulting in strong lending propositions.

However, these properties require more complex management and maintenance responsibilities, making them suitable for experienced landlords or those with professional property management arrangements.

When buying MUFBs, always check freehold ownership & boundaries with the Land Registry.