| Loan amount | £725,000 |
| Purchase price | £980,000 |
| Loan-to-value | 74% |
| Property type | 6-unit freehold block |
| Location | Exeter (EX1) |
| Term | 25 years interest-only |
| Rate | 5-year fixed |
| Lender type | Specialist MUFB lender |
The Story
An experienced property developer in Exeter builds houses and flats and retains them in their portfolio. Our client had just built a block of 11 flats in Exeter and wished to retain them. We discussed the pro’s and con’s of placing the property into leasehold titles vs keeping the unit under one freehold title. Our client decided to keep the property under the freehold title and required a 75% loan-to-value mortgage on the freehold block.
The Challenge
Securing a mortgage on 11 flats under one title was not an issue, as we work with funders who will comfortably lend on up to 20 units. The issue was that one of the flats was measuring 29.5 sqm, which was an issue for some lenders. Also, the client wanted to ensure that the valuation didn’t shave off 10% of the value compared to the value of 11 individual leasehold units.
The Solution
With access to specialist buy-to-let lenders, we knew which lenders would be pragmatic in their approach to this property. We secured funding for the SPV ltd company at 75% loan-to-value, at a fixed rate of 2.95% on an interest only basis.
We were able to speak to the panel of surveyors the lender used and had conversations about expected market values for a multi-unit freehold block (MUFB). Our client was happy with our investigations and conversations with the surveyors and, lo and behold, the property came in at the expected value.
Mortgage Broker For Freehold Block Of Flats
For more information buy to let mortgages on multi-unit freehold blocks of flats, please contact a member of the Fox Davidson team: Email enquiry@foxdavidson.co.uk or call us on 03300 100313.
Frequently asked questions
What is a high net worth mortgage?
A high net worth (HNW) mortgage is assessed under the FCA’s high net worth rules rather than the standard affordability test. It is available to borrowers with net assets over £3 million or annual net income over £300,000. Lenders read the net assets test literally and include the equity in your main home, and on a joint application only one of you needs to meet it.
How does HNW mortgage assessment differ from a standard mortgage?
HNW assessment is whole-of-wealth based rather than income-multiple based. Lenders consider total assets, liabilities, liquidity, income, and lifestyle costs, then negotiate loan size based on the overall financial picture.
What loan sizes are available with HNW mortgages?
HNW mortgages typically start at £1 million minimum and have no upper cap. Loans of £5 million to £20 million are routine for qualifying clients. Loans above £20 million typically involve syndicated lending or relationship-driven arrangements with private banks.
How long does an HNW mortgage take to complete?
HNW mortgages typically complete in four to ten weeks. Mainstream HNW lenders are at the faster end. Private bank cases involving committee approval, complex structuring, or offshore elements can take eight to twelve weeks.
Completed transaction. This case study describes a live deal arranged by Fox Davidson. Client details are anonymised and figures rounded.
All rates and terms are indicative and subject to individual assessment, lender criteria and property valuation. Your home may be repossessed if you do not keep up repayments on a mortgage.
Specialist mortgage advice for property professionals, high earners, and HNW clients across the UK.