The flats have either been created with the conversion of an existing house being split up, or a purpose-built block of flats. The benefit is that the risk of rental voids (gaps where rent isn't being paid either through no occupation or non payment by the tenant) are reduced – e.g. if there are 5 flats in your block and one is empty, you still have rents from 4 flats.
Additionally, owning the freehold allows flexibility and control, which landlords of leasehold flats may have found an issue in the past, with freeholders not consenting to home improvements or the type of use of the flat… for example airbnb.
There are some considerations around the size of the flats, how utilities are divided, whether they are individually mortgageable, and this will dictate the specialist lender that would be used to help fund any purchase or remortgage of an MUFB.
Furthermore, it’s vital to engage a broker as these types of mortgages are only available via an intermediary – you won’t be able to go direct to the lenders who fund MUFBs
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