The situation
Some investors approach a residential BTL lender for a 6-flat block and are declined or downvalued. The right lender treats the block as investment property, valuing on rental yield across all units.
How we approach it
We route block purchases to commercial and specialist BTL lenders that fund freehold blocks. Split-and-sell strategies (grant leases, sell individual flats) modelled at outset where that's the plan.
What that looks like in practice
- Freehold blocks 4-40+ units financed
- Investment valuation on rental yield across all units
- 65-75% LTV typical
- Split-and-sell exit strategies modelled if planned
- Retained freehold value factored in where leases are granted
Typical timeline
- Weeks 1-2Block details, rent roll, lender shortlist.
- Weeks 3-6Application, valuation, credit.
- Weeks 6-10Legals, completion.
Common questions
Can I split and sell individual flats after?
Yes — grant long leases and sell leaseholds; retain freehold with ground rents. Loan structure needs to allow partial redemption cleanly.
How is the block valued?
Investment valuation on rental yield across all units. Cross-checked against value if split and sold individually — often the latter is higher.
Any minimum block size?
Most specialist lenders want 4+ units; some go to 3. Below that, individual BTL mortgages usually work better.
Freehold blocks, properly funded
Send block details and rent roll — we'll route to lenders that specifically fund freehold blocks.