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The Client’s Situation
An experienced landlord, owning a multi-unit freehold block (MUFB) composed of 23 units (16 commercial shops and 7 residential flats), sought to refinance. The client wanted to improve their interest rate (as their fixed rate was expiring) and raise capital to reinvest in their property portfolio.
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The Challenge
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All of the commercial units were small (10–20 sq m), which excludes many lenders.
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Five of the seven flats were small (18–25 sq m), further reducing lender appetite.
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The client was estimating a value of £2 million, with an outstanding mortgage of approximately £860,000, and a rental income of £160,000 per year.
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Because of the complexity and small unit sizes, few lenders would consider the deal.
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Our Solution
We approached semi-commercial lenders experienced with complex MUFBs. We submitted full income schedules showing the £160,000 per annum rental income, and leveraged the client’s long track record managing similar blocks. We instructed the valuation, and negotiated legal process efficiencies via title insurance to speed up completion.
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The Result
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The property was valued at £1,725,000, with a vacant possession value of £1,500,000.
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The lender offered a net loan of £975,000, allowing the client to redeem their existing mortgage and release about £115,000 for further investment or improvements.
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Title insurance was used to shorten legal investigations, enabling completion in just a few weeks rather than the usual 8–12 weeks.
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Client Feedback
“Suffice to say I was very happy with the options and subsequent service provided by Henry, which was excellent. If I do decide to arrange another re-mortgage or finance another project, Henry will most certainly be my first port of call.”
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How can Advocate Finance help?
If you’re looking to refinance or purchase a semi-commercial or mixed-use MUFB, Advocate Finance can help you navigate lender selection, valuation methods, and legal structuring — all aimed at unlocking the best capital and terms for your property.
We provide a FREE assessment on all our services. Please contact me directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.
