Head of Content
Mortgage Advisor & Director
What is a multi-unit freehold block?
A Multi-Unit Freehold Block, or MUFB, is a set of multiple, separate, independent residential units that are held under a single title.
MUFBs offer a high-yield option for landlords in comparison to other categories of buy to let property. These types of property have their own Assured Shorthold Tenancy (AST) agreements, private areas with personal space for each resident, separate entrances for each household, and may have common areas for all residents to share.
Examples of MUFBs include:
- Purpose-built blocks of flats
- Houses that have been converted into flats
- Separate houses held under a single freehold title
MUFB or HMO?
The main difference between MUFB and HMOs to be aware of is that each unit is self-contained, with it's own entrance and individual AST, whereas with an HMO property, there are shared facilities such as kitchens and bathrooms. Although it may sound more complicated to manage multiple ASTs as opposed to one, these types of properties are generally more profitable, so for many landlords, the additional effort proves worthwhile.
Benefits of MUFBs
There are various benefits that MUFBs have over other buy to let properties:
Enhanced security of income - by having separate ASTs, you are mitigating the risk of lost rental income. If one tenant vacates, you will still retain the majority of your income and only need to find one new tenant.
Higher rental yields - in comparison to other types of rental property, MUFBs tend to attract a higher rental yield as they are more popular with tenants.
High demand - demand remains high for rental properties for people from a range of backgrounds, from professionals to students and families. The variety of appeal is greater than, for comparison, HMO properties.
Higher LTV - you may find that you can borrow more in comparison to other types of buy to let property, especially if the property is in a popular location.
Learn more and apply now
At Teito, our team of expert advisors have helped many landlords like you get the best deal on their MUFB property. As a whole-of-market broker, we work with hundreds of lenders to find the best deal for you, including those who specialise in MUFB mortgages. Get started comparing deals now, and we promise to make your mortgage journey with Teito as stress-free and straightforward as possible!
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
