Case Study: MUFB gets a 10% uplift in value using aggregate value

The Client’s Situation

A landlord client came to Advocate Finance looking to refinance a Multi-Unit Freehold Block (MUFB). The block contained multiple self-contained flats under one freehold title. The client’s goal was to maximise the value of the block to release additional equity for future investment.

The Challenge

When valuing a MUFB, lenders will often use one of two approaches:

• Bricks-and-mortar valuation – looking at the property as a single freehold block.

• Aggregate valuation – valuing each flat separately as if they were an individual units and then adding the values together.

In most cases, the bricks-and-mortar approach gives a lower overall figure. For this client, that meant less equity could be released, restricting their ability to reinvest. The challenge was to find a lender who would consider the aggregate method, which better reflected the true market value of the building.

Our Solution

Advocate Finance presented the case to a specialist lender who was comfortable applying the aggregate valuation method to this MUFB. We demonstrated that each flat was fully self-contained, met lending standards, and could realistically be sold individually if required.

By highlighting strong local demand for similar units, along with rental income sustainability, we secured a lender agreement to value the property using the aggregate approach.

The Result

The aggregate valuation gave the property a 10% uplift in value compared to the standard bricks-and-mortar assessment. This higher valuation allowed the client to raise more funds at refinance, which could then be reinvested into further property projects.

This outcome shows how understanding lender criteria and valuation methods can directly increase the equity investors can access from their MUFBs.

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