Capital Finance Group
HMO / MUFB Buy To Let
Houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) can offer higher rental yields than standard lets, but they need specialist lending. An HMO is let to several unrelated tenants who share facilities, while an MUFB is a single title containing several self-contained units.
Speak to a Property Finance SpecialistHMO / MUFB Buy To Let
These properties sit outside many mainstream lending policies, so knowing which lenders are comfortable with your property type, room count or number of units is important. We will help match your property and experience with a lender who understands the asset.
Who it suits
- Landlords buying or refinancing HMOs, including licensed properties
- Investors purchasing a block of flats on one freehold title
- Landlords converting a property into an HMO or several units
- Portfolio investors looking to improve overall yield
How it works
- Specialist lenders assess the property on its rental income across all rooms or units
- Valuations may be on a bricks-and-mortar or investment basis, which can affect how much you can borrow
- Loan-to-value levels are often similar to standard buy-to-let, typically up to around 75%
- Both personal and limited company applications are usually considered
- Bridging finance may be used first for a conversion, then refinanced onto a longer-term mortgage
Things to consider
- Many lenders require previous landlord experience, particularly for larger HMOs
- Licensing, planning, fire safety and local authority rules (including Article 4 areas) must be met
- Management demands and void risks are usually higher than with a single let
- The property is used as security, and personal guarantees are often required for company borrowing
Investing in an HMO or multi-unit block? Speak to an expert about specialist lending options.
Finance is subject to status and lender criteria.
Discuss hmo / mufb buy to let
Investing in an HMO or multi-unit block? Speak to an expert about specialist lending options.
Speak to a Property Finance Specialist