Title Split MUFB

A portfolio landlord came to us with a three-flat freehold block and a plan to split it into individual leasehold titles, the kind of value-adding move that only works if the funding is structured to release the uplift at completion, not months later.

We secured 100% of the purchase price against the block’s projected post-split value, and completed the client’s title split with no deposit contribution required.

The scenario

Our client approached us with a multi-unit freehold block comprising three apartments and sought guidance on the most strategic route to market. Their objectives were clear: secure the most cost-effective product, minimise capital injection, and split the block into three individual long leasehold titles, while retaining the freehold under a separate legal entity.

Following extensive analysis of property data and sold like-for-like comparables, the client projected that the aggregate value of the units, once legally split, would total £505,000. To validate the assumption, they engaged a local surveyor, who reviewed the supporting evidence and confirmed the projected value was achievable in the current market, which gave enough confidence to issue an indicative offer. The vendor accepted at £325,000 and the memorandum of sale was issued.

The challenges

• Confirming a lender would permit the title split to happen at completion, rather than months after purchase, which was the only way the client could realise the equity uplift immediately
• Structuring funding beyond a conventional purchase, where a lender would typically advance no more than 75% of the agreed price
• Meeting the requirement that each unit be fully self-contained with separately metered utilities and services, a fundamental condition for creating standalone leasehold titles
• Running three parallel mortgage applications, one for each future leasehold apartment, rather than a single purchase application

The solution

To identify the right product, we first confirmed that any proposed lender would permit a simultaneous title split on completion. With that established, we explored a more creative funding structure: given the expected equity uplift, we approached multi unit mortgage lenders to assess whether funding at 100% of the purchase price could be achieved, in effect around 64% of the projected aggregate post-split value.

We located a lender comfortable with the structure, and terms were issued. Because the loan sat within a lower loan-to-value bracket against the aggregate value, pricing remained competitive: a rate of 3.74%, fixed for two years, with a 3% product fee added to the facility.

As the block would legally comprise three separate leasehold apartments on completion, we submitted three individual multi unit buy to let mortgages, one per unit. Underwriting requirements were relatively generic and satisfied promptly: a Direct Debit mandate, a portfolio schedule (the client being a portfolio landlord), and a solicitor’s confirmation letter setting out the logistics of the title split. Property inspections followed the next week, and the market values returned as expected.

The outcome

The mortgage offers were issued at 100% of the purchase price. The appointed solicitor commenced the legal process, ordering searches and preparing three draft leases in anticipation of the title split.

Completion took place in line with the agreed timeline. The client came away owning three separate leasehold flats, retained the freehold, and made no deposit contribution to the purchase at any stage.