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Finanze rolls out unique ‘split value’ Multi-Unit Freehold Block loan product

Updated: Apr 18

Buyers can now split titles and borrow based on the improved value of Multi-Unit Leasehold Blocks - enjoying loans of up to £2.5 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 - 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.

Loans of up to £2.5 million are currently available through Elysium Bridging: A lender specialising in premium funding options for property developers and traders throughout the UK.

Principal of Finanze 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.

“We’ve exclusively partnered with Elysium to make this new form of title-split lending a reality - and some of our existing clients have already been able to borrow 100% of purchase price, which is an exceptional result.

“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.”

Business Development Manager at Elysium Bridging Paul Kermath said his firm was “extremely happy with the product that Finanze has introduced.”

He added: “The product is very well thought-out and the innovative way that it has been put together minimises the risk to both ourselves as the lender and the client.

“We were happy to partner exclusively with Finanze on this product with the extra care and due diligence that Alastair takes with each client to ensure that the individual needs and requirements are met.”

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 charges £199 on application and a further 0.5% of the gross loan on formal offer.

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About Finanze

Finanze specialises in bespoke solutions for bridging, buy-to-let, development finance and commercial mortgages.

Alastair Hoyne launched the company in 2021 - drawing on his background in investment banking, hedge fund management and strategic consultancy directorship to provide an institutional grade service to sophisticated private property investors and corporations.

Since receiving FCA approval at the end of September 2021, Hoyne has issued terms on £75m worth of property, representing £45m in gross loan value and of which 50% are in process.

For more information visit https://www.finanze.co.uk/

Notes to editors

Elysium bases loans on 70% of the end value after titles have been split, coined Loan-To-Split (LTS). So, if a property with five flats is for sale for £500,000 and the end value is expected to be £800,000 the Gross Loan would amount to £560,000. Deductions are made for retained interest charged at 0.99% per month (9 months recommended, with interest rebated for early completion), the 2% arrangement charge and a £500 admin fee. The client is responsible for the lender’s legal costs, the valuation report and the broker fees, as well as getting a specialist solicitor with title-splitting/lease experience, an accountant to set up the appropriate company structure and an architect to create new floor plans.

Your property may be at risk if you do not keep up with repayments on a loan secured against it.

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