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MUB/ MUFB

MUB/ MUFB – (Multi-Unit Blocks/Multi-Unit Freehold Blocks)

Another type of complex properties that requires specialist advise is a MUB/MUFB.

A Multi-Unit Blocks are self-contained individual properties on separate leases.

A multi-unit Freehold block is a single building with multiple, separate, independent residential units owned under a single freehold title, not necessarily with separate leases.

Characteristics of MUFB:
  • Each unit is let with a separate AST (assured shorthold tenancy) agreement.
  • Each unit has private areas that are the personal space of each resident/household
  • There are separate entrances for each resident/household.
  • There may be common areas which all residents/households have the right to use, such as hallway, stairs and garden area.

Whether it is purpose built flats or converted houses, Advance Mortgages & Protection can source you a lender with a competitive rate as we know what the lender will be looking for.

MUBs/MUFBs can be rented out to Single families or used as a HMO (for more than 3 unrelated individuals).

Some factors that will determine which lender is apt for you:

  • Separate leases created but with Majority Freehold.
  • Size of each unit
  • Average value of each unit, Investment Values & break up values
  • Location and Purchase Price

Your property may be repossessed if you do not keep up with repayments on your mortgage or on any other secured loans.

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage. 

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% of the amount borrowed, but a typical fee is £495.

Some buy to let mortgages and commercial mortgages are not regulated by the Financial Conduct Authority.