Case Study – £1 million MUFB Purchase – Hampshire
Background
June 2025
Our long-standing clients, based in Hampshire, returned to us to support their next major investment: the acquisition of an 11-unit, 20-bedroom MUFB, arranged across two blocks held under a single freehold title.
When they first approached us three years ago, their portfolio comprised just four properties. Since then, through strategic guidance and long-term planning with mortgage expert Chris, they have expanded to 14 properties — including the successful completion of a 10-bed HMO conversion.
For their latest acquisition, the clients once again turned to Chris for advice and funding support on a £1.42 million purchase, requiring £1 million in finance.
Chris Leek
Senior Buy to Let & Bridging Mortgage Specialist
If you are looking for an expert bridging broker, you can get in contact with Chris today by calling 08009499410 or by sending him a quick email
The Challenge
The scale and structure of the property immediately narrowed the pool of suitable lenders. MUFBs of this size require specialist underwriting, a strong track record, and a lender comfortable with non-standard security.
In addition, several further complexities needed careful consideration:
- Future title restructuring: The clients intended to split the freehold into 11 individual leases, requiring flexibility within the funding structure.
- Funding strategy: Chris assessed bridging finance, term lending, and staged security release options to identify the approach that best supported the clients’ long-term plans.
- Recent CVL: A recent Creditors’ Voluntary Liquidation deterred a number of lenders, despite the clients’ strong trading history and clear commercial rationale.
- Complex deposit structure: The deposit was provided via a layered inter-company loan, involving multiple trading businesses, shareholders, and holding companies – increasing the level of lender due diligence required.
Ultimately, this was a case that demanded a lender willing to look beyond surface-level risk and recognise the clients’ proven experience and long-term investment strategy.
Our Strategy
Before submission, Chris and Case Manager Ashley held transparent discussions with senior contacts at Paragon to ensure full clarity on the proposed structure and minimise the risk of delays later in the process.
Based on previous experience completing a similar transaction, Paragon was identified as the most suitable lender for a two-year fixed-rate solution. This structure:
- Allowed the clients to benefit from anticipated rate reductions over the next 24 months
- Provided sufficient time to progress the creation of individual leases
- Positioned the portfolio for a stronger aggregate valuation at refinance
- Created a clear route to releasing additional capital for future acquisitions
As a result of the team’s proactive approach, Paragon agreed to proceed, taking a pragmatic view of the clients’ overall strength, proven track record, and the transparent explanation surrounding the recent CVL.
The Results
The case progressed from submission in mid-May to full completion on mid-June — an impressively efficient turnaround given the complexity of the transaction.
Thanks to Chris and the team, the clients successfully secured a £1,000,000 loan, also benefiting from a free valuation, saving approximately £3,000 in upfront costs. Crucially, the final funding structure was carefully aligned with the clients’ long-term capital growth strategy, creating clear opportunities for strategic refinancing and further portfolio expansion in the future.
Overall, the outcome highlights the value of proactive planning, strong lender relationships, and a clearly defined long-term investment strategy.
| Property Valuation | £1,420,000 |
| Loan Amount | £1,000,000 |
| Completion Time | Less than 6 weeks |
| Mortgage Lender | Paragon |
Discover why so many investors choose us
If this sounds similar to your own portfolio needs and you want to discuss your investment with an expert, call us today on 08009499410. If you are in a hurry, you can also request a callback by entering your details here.
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IMPORTANT INFO
Any property used as a security may be repossessed if you do not keep up with repayments on your mortgage.
