Multi-Unit Freehold Block (MUFB) Mortgages: Lenders, Valuation, ICR and Stamp Duty

By Jake Stott, Knox Mortgages. Reviewed by an adviser authorised under Fort Advice Bureau, FCA FRN 972730. Published 25 September 2026. Last reviewed 25 September 2026.

A multi-unit freehold block (MUFB) mortgage is a buy-to-let mortgage secured on one freehold title that contains several self-contained flats or houses, each with its own front door, kitchen and bathroom, let on separate tenancies. One loan, one title, multiple rents. Around 15 to 20 UK lenders offer them, most cap borrowing at 75% of value, and the value they lend against is usually the block as a single investment, which sits 10% to 20% below what the flats would fetch sold one by one.

This guide covers what a MUFB is and how it differs from an HMO, which lenders accept blocks and on what published terms, how the block valuation and the rental stress test decide your maximum loan (with the arithmetic shown), the stamp duty position after the abolition of multiple dwellings relief, title splitting, converting a house into flats on bridging, and why cases get declined. If you are new to investment property, read our buy-to-let mortgage guide first.

What is a multi-unit freehold block?

A multi-unit freehold block is a building, or a group of buildings, held on a single freehold title and divided into two or more self-contained dwellings. The classic examples are a Victorian house converted into three flats, a purpose-built block of six to twelve apartments owned outright by one investor, or a terrace of four houses bought together on one title. What makes it a MUFB rather than a portfolio is the title: there are no individual leases on the units, so they cannot be mortgaged or sold separately without a title split.

Lenders split the market by size. Small blocks of 2 to 6 units are financed on specialist buy-to-let terms by lenders such as Aldermore, United Trust Bank, Castle Trust and Rely. Larger blocks of 7 to 30 units move onto commercial or portfolio desks at YBS Commercial, Shawbrook, Hampshire Trust Bank, InterBay and Together. Above roughly 30 units you are into commercial investment lending and the pricing, valuation and underwriting follow commercial rules. For mortgage purposes, “multi-unit block” (MUB) and “MUFB” mean the same thing; Paragon and UTB use MUB, most other lenders use MUFB.

How is a MUFB different from an HMO?

A MUFB is made up of self-contained units let separately, while an HMO is one dwelling let room by room to tenants who share a kitchen or bathroom. The distinction decides licensing, valuation, tenant profile and which lenders will look at the case. A MUFB does not need an HMO licence because no facilities are shared, unless one of the flats is itself let to three or more unrelated people, in which case that flat is an HMO within the block.

Factor	Multi-unit freehold block	HMO
Layout	Separate self-contained flats or houses on one title	One dwelling, rooms let individually, shared kitchen or bathroom
Tenancies	One AST per unit	One AST per room, or one joint AST
Licence	Not required unless a unit is itself an HMO	Mandatory for 5+ occupants; additional schemes for smaller HMOs in many councils
Valuation basis	Block investment value or aggregate of units	Bricks and mortar, investment or hybrid
Typical maximum LTV	75% (77% to 80% at a few lenders)	75% (80% to 85% on small HMOs)
ICR	125% to 145% (up to 160% for portfolio higher-rate taxpayers)	125% to 175%
Management intensity	Lower: one household per unit	Higher: room turnover, shared areas, fire regulations
Exit options	Sell whole block, or split the title and sell flats individually	Sell as HMO or revert to a single let

A MUFB is also different from owning several leasehold flats in the same building. If you own three flats in a block under three separate leases, each flat is a standard buy-to-let and can be mortgaged with almost any lender. If you own the freehold of the whole building with no leases granted, you own a MUFB and need a MUFB lender. Our HMO mortgage guide covers the room-by-room market in the same depth as this page.

Which lenders offer multi-unit freehold block mortgages?

Around 15 to 20 lenders, all specialist banks, building society commercial arms or non-bank lenders. None of the big six high street banks lend on a freehold block of flats through their buy-to-let ranges. The table below is taken from each lender’s published intermediary criteria at the date of review. Criteria change monthly, so treat it as a map of the market rather than a quote. Note that Precise stopped accepting new buy-to-let cases in 2026 and moved that business to Rely, its OSB Group sister brand, so the Precise MUFB criteria you may find elsewhere are out of date.

Lender	Maximum units	Maximum LTV	Loan size	ICR and stress rate	Experience	Notes
Paragon Bank	Up to 20 self-contained flats under one freehold title; considers blocks with up to 50% of units sold off	80% including fees	Up to £2,000,000 on specialist terms	ICR rate is the product charging rate or 5.00%, whichever is greater	Submitted through the portfolio process	Free valuations on some products; 2 to 4 week turnaround on streamlined cases
Shawbrook	No published cap; lends on “blocks of flats” and structured facilities on large blocks	75%	£50,000 to £50,000,000	Assessed per product; investment valuations available	New entrants through to professionals	Rates from 4.79%; 25% limited personal guarantee per application; £9.05m block facility completed at 65% LTV
Hampshire Trust Bank	No published cap	75% net (fees can be added)	Up to £25,000,000	Bespoke, 2 or 5 year fixes	Case by case	Limited companies, expats, trusts, offshore and foreign nationals; no maximum age, no minimum income
Aldermore	Up to 4 units	80% to £500,000; 75% to £1,500,000; 65% to £2,000,000	£25,000 to £2,000,000	140% higher-rate individual; 125% company or basic-rate. 2 year fix: higher of pay rate + 2% or 5.5%. 5 year fix: higher of pay rate or 4.0%	At least one applicant let a property for 6 months	Criteria guide 1 July 2026; separate application from standard units
Rely (OSB Group, ex Precise)	No cap; above 8 units maximum exposure per block 20%	75%	Up to £10,000,000	125% company or basic-rate; 140% non-portfolio higher-rate; 160% portfolio higher-rate	Must already own a home or a buy-to-let	Blocks under 20 units valued on aggregate; 20 units and over on block investment value; studios under 30 sq m not accepted
InterBay (OSB Group)	Up to 6 units on aggregate valuation; 7 or more on block investment value	75% of lower of vacant possession value, investment value or price	£125,000 to £25,000,000	140% individual / 125% company standard; 175% / 145% complex	First-time landlords on small blocks; 2 years’ sector experience for 7+ units	England and Wales; each unit over 30 sq m GIA and marketable in isolation for aggregate basis
Castle Trust Bank	Aggregated value on blocks up to 10 units	77% gross on TermTen	£200,000 to £10,000,000	125% / 145%	First-time landlords accepted	10 year term, 5 year fix; minimum 35 sq m per unit, 30 to 35 sq m accepted if block average is 35; bridge-to-let with guaranteed term exit
YBS Commercial	Minimum 7 units	75%	£500,000 to £20,000,000 (£10,000,000 per block)	125% gross rental ICR at the product stress rate; 100% DSCR on capital and interest	12 months’ letting experience	Limited companies, LLPs and SPVs registered in England and Wales; minimum £135,000 per unit and 31 sq m GIA; EPC A to C; valuation on lower of price, vacant possession and investment value
Together	Up to 30 units on buy-to-let terms; 31 or more on commercial term	75%	Case by case; Premier desk for £1,000,000+	125% basic-rate and limited companies; 145% higher and additional rate; variable products stressed at pay rate + 1%	Experienced landlord: 2+ BTLs for 2+ years; inexperienced considered with top slicing rules	Adverse credit considered on a demerit system; 90% of projected rent accepted on new lets; BTL from 6.09%
Roma Finance	MUFBs accepted on RomaPRO	75%	Up to £750,000	Top slicing available	Case by case	5 year term from 2.99% plus base; bridge-to-term in house; England, Wales and Scotland; Manchester based
United Trust Bank	Up to 10 self-contained units with their own separate utilities	75%	£25,000 to £1,500,000	125% basic-rate and limited company; 140% higher-rate; 130% mixed. 2 year fix: higher of pay rate + 2% or 5.50%; 5 year fix: pay rate	1 year’s letting experience (waived for blocks up to 4 units from 2026)	Minimum valuation £150,000; every unit at least 30 sq m
Redwood Bank	Small and large MUFB	76.5% including fee	£250,000 to £10,000,000	Small MUFB: 125% company / 140% personal. Large MUFB: 145% / 175%. Stress: higher of pay rate + 1% or 5.50% (variable, 2 and 3 year); pay rate on 5 year fix	Case by case; tiered credit accepts light adverse	100% valuation fee cashback on MUFB from 1 July 2026; interest only or capital and interest, 2 to 30 years

Knox runs a bridging and commercial desk with a panel of more than 100 lenders, of which 17 are tagged for multi-unit blocks in our database, including the term lenders above and short-term lenders such as Octopus, GB Bank, Mercantile Trust and TAB for the purchase and conversion stage. The value we add is not the list; it is knowing which lender’s valuer will treat your particular block fairly.

How do lenders value a multi-unit freehold block?

Lenders value a MUFB on one of two bases, and the choice can move your maximum loan by six figures. The aggregate basis adds up the open market value of each flat as if it were sold individually on a long lease. The block investment basis values the building as a single asset that an investor would buy for its rent, which is typically 10% to 20% below the aggregate figure because a buyer of a whole block expects a discount for buying in bulk and for the work of splitting it later.

Basis	How it is calculated	Who uses it	Effect on your loan
Aggregate of units	Sum of each flat’s individual open market value	Rely (blocks under 20 units), InterBay (up to 6 units), Castle Trust (up to 10 units), Paragon on smaller blocks	Highest figure; only available where each unit is self-contained, over 30 sq m and marketable on its own
Block investment value	Capitalised rent, or aggregate less a bulk discount of 10% to 20%	Rely (20+ units), InterBay (7+ units), YBS Commercial, most commercial desks	Lower figure; the discount widens on larger blocks and where units are small or non-standard
Lower of the three	Lowest of purchase price, vacant possession value and investment value	YBS Commercial, InterBay	On a purchase the price usually caps the loan regardless of value

Worked illustration. A converted six-flat block in south Manchester where each flat would sell for £150,000 has an aggregate value of £900,000. The same block valued as an investment at a 13% bulk discount comes in at £783,000. At 75% LTV the aggregate basis supports a loan of £675,000 and the investment basis supports £587,250. That £87,750 gap is the difference between the refinance repaying the bridging loan in full and the investor having to find the shortfall from cash. Which basis the valuer uses is set by the lender’s instruction, not by the valuer’s opinion, so lender choice comes first.

How does the interest cover ratio work on a MUFB?

The interest cover ratio (ICR) is the rental stress test. The lender takes the gross rent from all units, divides it by a notional annual interest figure at a stress rate, and requires the result to be at least 125% for limited companies and basic-rate taxpayers, 140% to 145% for higher-rate taxpayers, and up to 160% or 175% for portfolio landlords or large blocks at some lenders. The stress rate on a 2 year fix is usually the pay rate plus 2% or a floor of 5.5%, whichever is higher; on a 5 year fix most lenders stress at the pay rate itself. The rent used is the valuer’s figure or the actual rent, whichever is lower.

Worked example, using the £783,000 block above, six flats let at £650 a month each:

• Gross rent: 6 × £650 × 12 = £46,800 a year
• Loan requested: £587,250 (75% of £783,000)
• 5 year fix at 5.49%, stressed at pay rate: £587,250 × 5.49% = £32,240 annual interest
• Limited company at 125%: £32,240 × 1.25 = £40,300 rent required. £46,800 passes with £6,500 headroom.
• Higher-rate individual at 145%: £32,240 × 1.45 = £46,748 rent required. £46,800 passes by £52, which means any valuer haircut on the rent fails the case.
• Same loan on a 2 year fix at 5.29%, stressed at pay rate + 2% = 7.29%: £587,250 × 7.29% = £42,811 interest. At 125% the rent required is £53,514 and the case fails.
• Maximum loan on the 2 year fix at 125%: £46,800 ÷ 1.25 ÷ 7.29% = £513,580, so the borrower needs an extra £73,670 of deposit to take the shorter fix.

Two lessons. First, on a MUFB the 5 year fix is often the only product that supports 75% LTV, because the lower stress rate outweighs the slightly higher pay rate. Second, buying in a limited company at 125% rather than personally at 145% raises the maximum loan on this block by about £80,000. Our buy-to-let mortgage calculator runs these figures for any rent and rate.

How much deposit do you need for a multi-unit freehold block mortgage?

You need 25% of the lender’s valuation at most lenders, with a small number going to 77% (Castle Trust), 76.5% including fee (Redwood) or 80% (Paragon, and Aldermore up to £500,000). Because the valuation is usually the block investment value rather than the aggregate, and because the purchase price caps the loan on an acquisition, the effective deposit against the price you pay is often 30% or more. On a £783,000 investment-value block bought for £800,000, a 75% loan of £587,250 leaves £212,750 to find, which is 26.6% of the price before stamp duty, fees and any refurbishment.

Deposit sources are treated as for any buy-to-let: savings, equity released from other property, director’s loans into an SPV and gifted deposits from family are all acceptable at most lenders. Where the deposit comes from a bridging loan or a director’s loan, lenders want to see the repayment plan in the ICR or the background portfolio assessment. Larger blocks of 20 units or more are usually capped at 60% to 70% LTV, so plan for a 30% to 40% deposit on institutional-scale purchases.

Should you buy a MUFB in a limited company or SPV?

Most MUFB purchases now go through a limited company, and for higher-rate taxpayers the mortgage maths alone usually settles it: the ICR is 125% in a company against 140% to 160% personally, which on a typical block adds 10% to 15% to the maximum loan. Section 24 then removes mortgage interest relief for personal ownership, while a company deducts interest in full and pays corporation tax at 19% to 25% on the profit. YBS Commercial and Blackfinch lend only to companies on blocks; every other lender in the table accepts both.

The company should be a special purpose vehicle with a property SIC code (68100, 68209 or 68320), all directors and 25%+ shareholders on the application as guarantors, and a UK registration for the widest choice of lender. Layered structures with a holding company are accepted by Aldermore, HTB and Shawbrook but not by every lender, and each layer adds legal work. Our limited company buy-to-let mortgage guide covers SPV set-up, guarantees and the transfer of existing property into a company. Take tax advice on your own position; we arrange the finance and work alongside your accountant on the structure.

Is a MUFB a good investment compared with individual flats?

A MUFB usually produces a higher gross yield than the same flats bought individually, because you buy at the block investment value (the bulk discount) and let at full individual rents. On the example above, £46,800 of rent on a £783,000 purchase is a 6.0% gross yield; the same flats bought one at a time for £900,000 would yield 5.2%. Voids are also spread across several units, so one empty flat costs a sixth of the income rather than all of it, and there is no service charge or ground rent leaking out to a third-party freeholder because you are the freeholder.

The trade-offs are liquidity and lender choice. A whole block sells to a smaller pool of buyers than a single flat, the mortgage market is 15 to 20 lenders rather than 60 plus, and you carry the building’s roof, structure and communal areas yourself. Fire safety for the common parts, an EWS1 on taller converted buildings and building insurance for the whole block are your responsibility. Investors who plan properly treat the bulk discount as the profit margin and the title split as the exit.

Can you split the title and sell the flats individually?

Yes, and title splitting is the most common MUFB exit strategy. You own the freehold, so you can grant a long lease, typically 125 to 999 years, on each flat, register it at the Land Registry, and either sell the flat on the open market or remortgage it as a standard leasehold buy-to-let. Because each flat then sells at its individual value rather than the block value, the uplift is the same 10% to 20% bulk discount you received on the way in, less the cost of the leases.

The mechanics matter for the mortgage. Granting a lease on a flat that is charged to a MUFB lender needs that lender’s consent and usually a partial redemption of the loan from the sale proceeds. Some lenders build this in: Paragon will lend on blocks where up to 50% of the units have already been sold off, and Rely’s exposure rule (maximum 20% of a block above 8 units) is designed for part-sold developments. Others want the block intact for the full term. If title splitting is the plan, say so at application and we will place the case with a lender whose criteria allow staged releases. A lease creation costs roughly £1,000 to £2,000 per flat in legal and Land Registry fees, and the leases must be drafted to a lender-acceptable standard or the individual flats will be unmortgageable.

Can you convert a house into flats and refinance onto a MUFB mortgage?

Yes, and it is one of the more reliable value-add strategies because a term MUFB lender will lend on the finished block at its new value. A term lender will not lend on a house mid-conversion, so the route is a refurbishment or development bridging loan for the purchase and works, then a refinance onto a MUFB mortgage once the units are complete, signed off and let. The full cycle is set out on our buy, refurbish, refinance page.

Stage	Finance	Typical terms	What the lender needs
1. Purchase and works	Refurbishment bridging or, for structural schemes, development finance	70% to 75% of purchase price plus up to 100% of works in arrears, 0.7% to 1.1% a month, 6 to 18 months; up to 70% to 75% of GDV	Planning permission for the change of use (C3 house to C3 flats still needs planning), building regulations, a schedule of works and a costed exit
2. Completion and letting	Bridge continues	Interest rolled or serviced	Building control completion certificate, structural warranty or professional consultant’s certificate on new units, EPCs per flat, separate utilities, ASTs in place
3. Refinance	MUFB term mortgage	75% of the new block value, 2 or 5 year fix, or a 10 year term at Castle Trust	Valuation on aggregate or investment basis, rent schedule, ICR pass, six months’ ownership at most lenders (day one lenders exist)

Two products remove the biggest risk in this cycle, which is reaching the end of the bridge without a term lender. Castle Trust’s bridge-to-let offers a guaranteed term exit agreed at the outset, and Roma’s FLOW to PRO does the same in house. Our bridge-to-let mortgage page explains how the exit is underwritten before you draw the bridge. Budget for a new-build warranty or a PCC on every newly created unit; several term lenders decline conversions without one, and the cost after the fact is far higher than arranging it during the build.

What stamp duty do you pay on a multi-unit freehold block?

Since 1 June 2024 there is no multiple dwellings relief. HMRC’s guidance states that “MDR will be abolished for transactions which complete, or which substantially perform, on or after 1 June 2024”, with a transitional rule only for contracts exchanged on or before 6 March 2024. For a block of 2 to 5 dwellings bought in one transaction, SDLT is now charged at the residential rates on the whole price, plus the 5% additional dwellings surcharge, with no averaging across units. That change added tens of thousands of pounds to the cost of small blocks.

Blocks of 6 or more dwellings are different. Under section 116(7) of the Finance Act 2003, a purchase of six or more dwellings in a single transaction can be treated as non-residential for SDLT, and gov.uk confirms that people buying 6 or more residential properties in one transaction can use the non-residential rates. Those rates are 0% to £150,000, 2% from £150,001 to £250,000 and 5% above £250,000, with no additional dwellings surcharge. Worked example on a six-flat block bought for £783,000 in England:

• Non-residential rates: £150,000 × 0% = £0; £100,000 × 2% = £2,000; £533,000 × 5% = £26,650. Total £28,650.
• Residential rates with the 5% surcharge: £125,000 × 5% = £6,250; £125,000 × 7% = £8,750; £533,000 × 10% = £53,300. Total £68,300.
• Saving from the six-dwelling rule: £39,650.

The same block with five flats would pay the full £68,300 under the residential rates. That cliff edge at six units is why investors sometimes buy a fifth flat and a sixth in the same transaction, or why a five-unit conversion is worth revisiting as six. Scotland (LBTT) and Wales (LTT) have their own rules and their own six-dwelling provisions. Confirm the SDLT position with your solicitor or tax adviser before exchange; we flag it, we do not calculate your tax return.

Why do MUFB mortgage applications get declined?

MUFB applications are declined for property and title reasons far more often than for borrower reasons. The seven we see most, with the fix for each:

1. Wrong valuation basis for the lender. The lender instructs an investment valuation and the figure comes back 15% under the aggregate the investor budgeted on. Fix: place the case with a lender that uses the aggregate basis on that block size (Rely under 20 units, InterBay up to 6, Castle Trust up to 10) and brief the valuer with a unit-by-unit rent schedule.
2. Units too small. A flat under 30 sq m fails the minimum at almost every lender, and Castle Trust wants a block average of 35 sq m. Fix: exclude the unit from the aggregate and lend on the compliant ones, or reconfigure before the term refinance.
3. No planning or building regulations for the conversion. A house split into flats without consent is unmortgageable until regularised. Fix: a lawful development certificate or retrospective consent, obtained while on bridging, before the term application.
4. Shared utilities. One gas or electricity supply serving several flats fails the “self-contained” test at UTB and others. Fix: separate metres, or a lender that accepts sub-metering with a landlord recharge.
5. Too many units for the lender. A 5 unit block at Aldermore (cap 4), an 11 unit block at UTB (cap 10), a 6 unit block at YBS (minimum 7). Fix: match the unit count to the table above before applying.
6. Experience shortfall. A first-time landlord on a 12 unit block. Fix: Castle Trust or InterBay on a small block, or a managing agent agreement and a lower LTV at lenders that accept it.
7. Part-sold block. Two of eight flats already sold on long leases, leaving a broken freehold. Fix: Paragon (up to 50% sold) or Rely’s exposure rule; a broken block is not a MUFB at most other lenders.

A declined MUFB case costs a valuation fee of £1,000 to £3,000 and six to eight weeks. The cheapest fix is the right lender first time.

How long does a MUFB mortgage take?

Plan for 6 to 10 weeks from application to offer on a purchase, and 8 to 14 weeks to completion. Specialist valuations on blocks take longer to instruct and report than a single flat, the lender’s solicitor reviews the freehold title, planning history and every tenancy, and company purchases add independent legal advice on personal guarantees. YBS Commercial publishes a target of a credit-backed decision in principle in 24 hours and an offer in 30 days; Paragon’s streamlined process runs 2 to 4 weeks on clean cases. Refinances of a stable, fully let block with clean paperwork are quicker, often 4 to 6 weeks to offer.

The avoidable delays are the same ones that cause declines: a rent schedule that does not match the ASTs, missing building control certificates on converted units, and a case sent to a lender whose criteria it never met. Our mortgage timeline guide sets out the stages in detail.

An anonymised Knox MUFB case

Illustrative and anonymised. A client with four single-let houses in Stockport bought a large end-terrace in Levenshulme for £310,000 through a new SPV, using a refurbishment bridge at 70% of purchase plus 100% of works. Planning for the change from a single dwelling to three flats had been granted by the previous owner. Over seven months the client created three two-bedroom flats with separate metres and front doors, spending £96,000, and obtained the building control completion certificate and a professional consultant’s certificate on each unit.

At the term refinance the flats were let at £925, £925 and £875 a month, a gross rent of £32,700 a year. The first lender approached instructed a block investment valuation and returned £390,000, which at 75% released £292,500, short of the £313,000 needed to clear the bridge and works. The second lender instructed an aggregate valuation at £150,000, £150,000 and £140,000, a total of £440,000, and lent £330,000 on a 5 year fix, stressed at the pay rate with a 125% ICR: £330,000 × 5.39% = £17,787 interest, £22,234 rent required, £32,700 available. The refinance repaid the bridge and the works in full and left the client with a 7.4% gross yield asset and roughly £23,000 of their own money in it. Same building, same rent; the valuation instruction was worth £37,500 of borrowing.

Multi-unit freehold block mortgage frequently asked questions

What is a MUFB mortgage?

A MUFB mortgage is a buy-to-let loan secured on a single freehold title containing two or more self-contained flats or houses let on separate tenancies. It is offered by 15 to 20 specialist lenders at up to 75% loan to value, and the property is valued either as the sum of the individual units or as a single investment block.

Can I get a standard buy-to-let mortgage on a block of flats?

No. Mainstream buy-to-let lenders require one dwelling per title. A freehold containing several flats with no individual leases needs a lender with a multi-unit product, and the pricing, valuation and stress test follow MUFB rules rather than standard buy-to-let rules.

What is the maximum number of units a MUFB mortgage covers?

It depends on the lender: Aldermore caps at 4 units, UTB and Castle Trust at 10, Paragon at 20, Together at 30 on buy-to-let terms, and Shawbrook, HTB, YBS Commercial and Rely have no published cap. Above 30 units the case moves to commercial investment lending at 60% to 70% LTV.

Do I need landlord experience for a MUFB mortgage?

Not always. Castle Trust and InterBay accept first-time landlords on small blocks, and UTB waived its experience rule for blocks of up to 4 units in 2026. Aldermore wants 6 months, UTB and YBS Commercial 12 months, and InterBay 2 years’ sector experience on blocks of 7 or more units.

Is a MUFB valued as one property or as separate flats?

Either, depending on the lender’s instruction. An aggregate valuation adds up each flat’s individual value; a block investment valuation prices the building as one asset, usually 10% to 20% lower. Rely, InterBay and Castle Trust use the aggregate basis on smaller blocks, which produces the larger loan.

Does a multi-unit freehold block need an HMO licence?

No, provided each unit is self-contained and let to a single household. A licence is only needed if an individual flat within the block is itself let to three or more unrelated people sharing facilities. Some councils apply selective licensing to all private lets in designated areas, which is a separate scheme.

How much stamp duty is there on a block of flats?

For 2 to 5 dwellings, the residential rates plus the 5% additional dwellings surcharge on the full price, with no multiple dwellings relief since 1 June 2024. For 6 or more dwellings in one transaction the non-residential rates of 0%, 2% and 5% can be used with no surcharge, which on a £783,000 block saves about £39,650.

Can I remortgage a MUFB to release equity?

Yes. A fully let block can be remortgaged at up to 75% of its current value, and where the lender uses an aggregate valuation the figure reflects what the flats would sell for individually. Most lenders want six months’ ownership; day one refinances are available for blocks bought with cash or bridging, subject to the loan being capped at the purchase price plus documented works.

Speak to a Manchester MUFB mortgage broker

Knox Mortgages is a whole-of-market broker with a dedicated bridging and commercial desk and a lender panel of more than 100 short-term, specialist and commercial lenders. We place MUFB purchases, house-to-flats conversions, title splits and block refinances for first-time landlords through to portfolio investors, and we tell you before you pay a valuation fee which lender and which valuation basis fit your block.

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