Why you need an adviser that understands multi-unit blocks of flats!
Are you losing out by not having multi-unit blocks of flats as part of your investment property portfolio strategy?
Often abbreviated as MUBFs, this type of asset class is proving to be very popular for many landlords. But what is it that attracts investors to multi-unit blocks of flats?
- Less management time – They are easier to manage than multiple individual flats and houses as they are all within the same block. This will help improve your time management across your portfolio as you are not having to drive to multiple properties.
- Block Discount – MUBFs consisting of multiple units are often cheaper to purchase than if you were to buy the equivalent number of flats but as separate units – this is referred to as the block discount.
- Higher Yield – The potential yield produced from a MUBF will also attract investors to these properties as they tend to produce higher yields. This is because of the block discount and the rental income being the same as equivalent long leasehold flats.
However, financing of MUBFs is not as straightforward as it may be for simple singular houses and flats. There are fewer lenders available and many mortgage advisers do not have the required level of expertise. Fortunately, the advisers at Advocate Finance are experts in this area of Buy-to-Let lending. We also have access to a large range of lenders and products that will best suit the scenario you are faced with when it comes to multi-unit blocks of flats.
Finding a solution for your standard blocks of flats is not too problematic in the current market. However, when there are quirks and unusual circumstances related to these properties, this is when it can become challenging. Fortunately, the knowledge we have on this area allows us to find you a solution when no one else can.
Quirks and unusual circumstances
What do we mean by quirks and unusual circumstances being related to your MUBF? Some of the scenarios are as follows –
- Firstly, we do have access to lenders who can accept blocks of flats where some of the individual units within the block may be below 30 sq metres. For many lenders this is a problem.
- We also have lenders available that can lend on a block of flats when the utilities for the separate units originate from the same mains (gas, electricity etc.).
- Another problem area that we can help with is finding a lender to accept a MUBF that may have some of the flats sold off/kept on separate leasehold titles .This is sometimes referred to as a broken-up block of flats as the block consists of both a freehold block and separate leasehold flats.
We can help you with your Muti-Unit Block of Flats enquiry –Where to seek further advice and help
It is more important than ever to seek the advice of an adviser who specialises in this market. We provide a free assessment on all our services. Please do contact us for more information.
Henry Barley – Property Finance Adviser
Email – Henry@advocatefinance.co.uk Tel: 01206 544333
Find us on Facebook