Buyers can now split titles on completion and borrow based on the improved value of Multi-Unit Leasehold Blocks - enjoying loans of up to £2 million
Buyers in the market for Multi-Unit Freehold Blocks (MUFB) can now enjoy substantially better borrowing options thanks to the launch of a unique new loan which is based on theoretical values of leasehold flats in a building after titles are split.
This product - the latest in a long line of innovative financial solutions designed by Finanze, the property finance brokerage - enables clients to borrow funds to buy pre-divided freehold property complexes and then split titles on completion of purchase.
With this type of agreement, borrowing is based on the improved value of the Multi-Unit Leasehold Blocks (MULB) - rather than the usual ‘lower of the purchase price’ or 180-day value.
This provides access to significantly better leverage - so clients can borrow up to 100% of the purchase price and even acquire funds for renovation (if the property value improvement is high enough after splitting titles).
Suitable for both high net worth clients and those who require a lower deposit option, Finanze’s Title Split product is now being rolled out to the wider market following a successful three-month trial.
CEO of Finanze Group Alastair Hoyne explained: “If local leasehold flats are in demand, the parts can be worth more than the whole.”
“A number of my clients have enjoyed great success by pursuing our new ‘Title Split Strategy’ - which involves buying these Multi-Unit Freehold Blocks and splitting the apartment titles on completion before selling or refinancing. The most successful of which built a £5m portfolio in 7 months having started with a few hundred thousand. An achievement which would have taken a far longer time with traditional strategies or have required a far higher deposit."
“This product is perfect for sophisticated property investors, but there can be considerable upside for other parties that might be looking to put down a smaller deposit, too.”
Any client pursuing this lending option is responsible for legal, valuation, and broker fees - but Finanze will offer referrals to recommended solicitors, accountants and architects that can immediately provide the necessary services, guaranteeing a smooth process from start to finish.
Finanze's brokerage team charges £499 on application and a further 1.0% of the gross loan on formal offer. The Finanze Capital title split facility is a 12 month retained bridge, at 1.2% per month and a 2% arrangement fee. Minimum 3 months interest, no exit fee.
Your property may be at risk if you do not keep up with repayments on a loan secured against it.
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