12-Unit MUFB, Wolverhampton

12-unit MUFB, Wolverhampton: 90% LTV secured after a title split unviable

An established portfolio landlord came to us with a 12-unit freehold block in Wolverhampton and a plan to bridge, split the titles, and exit onto a term mortgage at a higher value. The numbers didn’t support that plan, so we found a route that didn’t need a split at all.

We secured 90% loan to value against the purchase price, letting our client acquire a £1m+ asset with a 10% deposit and no title split, completing in 7 weeks from decision in principle.

The scenario

Our client approached us with a 12-unit multi-unit freehold block purchase in Wolverhampton at £950,000. The original strategy, in line with how portfolio buy to let mortgages are often structured on multi-unit stock, was to bridge the purchase, split the titles of each unit, and exit onto a term facility against the higher gross development value the split units would achieve.

The challenges

• Confirming whether the individual units could actually be resold fast enough, post-split, to meet lender expectations on exit timing
• A local valuer advising that in this specific area, the aggregate split value would not exceed the block’s value as a single asset: the title split strategy the client had planned around wasn’t viable here
• Needing an alternative funding structure that could still achieve high leverage without relying on a split
• Confirming the block’s value, subject to condition, was robust enough to support high LTV lending as a single asset

The solution

As part of our due diligence, we approached a contact on our valuation panel, who advised that in this area the aggregate split value would not exceed the block value, because the timescale required to resell each unit individually would not meet lender expectations. The same valuer did confirm the block value, subject to condition, was circa £1,250,000.

In light of that, we recommended a different route: a portfolio buy to let mortgage structured to achieve 90% borrowing against the purchase price, with no requirement to split the titles at all. During the application, we instructed the same firm that had provided the estimated valuation. The formal valuation returned a block value of £1,188,000, still comfortably supporting 90% borrowing against the £950,000 purchase price, and giving our client access to property portfolio finance without the added risk and timeline of a title split.

The outcome

Our client secured a cash-flowing asset worth over £1 million with a 10% deposit. The process from decision in principle to completion took just 7 weeks.