For professional landlords and property investors, multi-unit freehold blocks (MUFBs) represent an efficient way to generate high yields, consolidate portfolio holdings, and retain long-term value. But financing these properties is not straightforward—particularly in 2025, where lender criteria and valuation methods vary significantly.

Whether you’re acquiring a new MUFB or refinancing an existing one, this guide explains how lenders assess them, what structures they accept, and how to navigate the funding process successfully.

What Is a MUFB?

A Multi-Unit Freehold Block (MUFB) is a single freehold title that contains multiple self-contained flats—often two to six, but sometimes more.

Key features:

• All units sit on one freehold title (not split into leases)
• The block may be purpose-built or converted
• Flats are usually self-contained with their own kitchens and bathrooms
• The borrower may rent out the units individually or collectively

MUFBs differ from HMOs in that each flat is its own legal dwelling—though the two are often confused.

Why Investors Like MUFBs

• Higher rental yields than single-unit lets
• Lower SDLT vs. buying the same number of units individually
• Simplified ownership structure
• Ability to refinance as a block
• No requirement to grant leases (though leases can be added later for resale or refinancing)

But these advantages also come with complex funding challenges.

How Lenders View MUFBs in 2025

Lender appetite for MUFBs has grown—but it remains specialist territory.

Lenders typically look at:

• Number of units—some cap at 4, others accept 10+
• Self-containment—each unit must have its own facilities
• Property condition—especially for conversions or older stock
• Location and demand—saturation in some areas can raise concerns
• Ownership structure—most lenders prefer SPV limited companies

Many mainstream lenders do not offer MUFB mortgages, and the majority of cases go through specialist lenders or buy-to-let divisions.

Key Mortgage Considerations for MUFBs

🔹 Loan-to-Value (LTV)

• Typically capped at 75% LTV, but lower for larger blocks
• Refinancing after value uplift may allow capital release

🔹 Valuation Method

• Usually valued on a bricks and mortar basis, unless block is large enough to justify investment yield method
• Valuers assess rental income, location, and resale liquidity

🔹 Borrower Experience

• Most lenders prefer experienced landlords
• First-time investors may face restrictions or lower LTVs

🔹 Income Assessment

• Rental income from all units is typically considered
• Some lenders apply stress testing at individual unit level

Common Challenges

• Legal title issues—e.g. if part of the block has been previously leased or sold
• Insurance complexities—especially with part-commercial blocks
• Licensing or planning restrictions, particularly with large conversions
• Exit strategy—important if using bridging or development finance for acquisition or refurbishment

Case Study: Refinancing a 4-Unit MUFB in Bristol

A Willow client owned a 4-flat converted Victorian terrace on a single freehold title. He had refurbished the units and was achieving strong rents—but his existing lender wouldn’t allow capital release.

We secured a specialist MUFB mortgage at 75% LTV, using a hybrid valuation (brick-and-mortar with income support) and enabled the client to release £150k to fund his next acquisition. The mortgage was placed under his SPV, streamlining future portfolio planning.

How Willow Private Finance Helps

We regularly assist:

• Portfolio landlords expanding via MUFBs
• Developers converting properties into multi-units
• Investors refinancing to release equity or consolidate debt
• Buyers using bridging-to-term strategies for purchase and refurbishment

Because we’re whole-of-market, we can identify MUFB-friendly lenders, navigate valuation strategy, and manage the legal complexity that can delay deals.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.