London remains one of the most attractive places in the UK to invest in property. With rental demand consistently high and limited space for new development, the capital offers long-term growth potential for landlords. For those looking to scale their portfolio, buying a full block of flats can be a smart and efficient way to expand.
However, if the property is located in a high-rise building or consists of multiple units under a single title, you will need a different type of mortgage. This guide explains how mortgages for high-rise flats work, what lenders look for, and how landlords can identify the right opportunities.
Related: Buy-to-let property: Rules to remember
Becoming a landlord in London
London has a strong and varied rental market. Many people living in the capital rent for longer than in other areas of the country due to higher house prices, job flexibility and lifestyle preferences. This creates a reliable pool of tenants for landlords, particularly in areas with good transport links, schools and amenities.
While buying individual flats remains a popular option, purchasing an entire block of flats can provide better returns. It also reduces the complexity of managing multiple properties across different locations.
What are high-rise flats?
In the UK, a high-rise building is usually defined as one that is at least 18 metres tall or has seven or more storeys. These buildings are found across many London boroughs, particularly in areas built during the post-war period or within more modern urban developments.
Each flat in a high-rise is typically self-contained. That means it has its own kitchen, bathroom and entrance. However, when these units are all owned under a single freehold, the mortgage you need will be different from a standard buy-to-let.
Why invest in high-rise flats
High-rise buildings offer strong potential for income and growth. They are often in high demand among tenants seeking city living and convenient transportation access. They also appeal to professionals and students who want to be close to work or study.
From an investment perspective, buying a multi-unit block in a high-rise allows you to generate multiple streams of income from a single purchase. This can also make management more efficient and give you greater control over how the building is run.
Related: Understanding rental yield: a guide for landlords
What are the risks
Buying a high-rise property comes with extra responsibilities. Service charges can be higher due to shared lifts, fire safety systems and communal maintenance. Lenders may also be cautious if the building has cladding, safety issues or poor maintenance records.
Some high-rise buildings may have leasehold flats with different terms and conditions. Understanding the lease lengths, ground rent and service charges is vital before making an offer.
Related: How do you sell a leasehold property?
Can you get a mortgage on a block of flats?
Yes, but not with a standard residential or single-unit buy-to-let mortgage. If you are buying a building with several self-contained flats held under one freehold title, you will need a specialist product called a multi-unit mortgage or multi-unit freehold block mortgage.
These are offered by lenders who work with professional or portfolio landlords. Not every lender will finance high-rise buildings, especially those over a certain number of floors. That is why it is important to work with a broker who understands this area of the market.
Application requirements
Lenders will look at the following when considering your application:
- Your experience as a landlord
- The number of units and the layout of the building
- Projected rental income from the full block
- The condition of the property and whether it meets safety standards
- Whether the purchase is personal or through a limited company
The valuation will also assess whether the block is fully self-contained, whether all units are lettable and whether any issues such as cladding or structural repairs may affect future rental income.
How to get a multi-unit mortgage
Getting finance for a high-rise block takes more preparation than a standard buy-to-let. To improve your chances of success, follow these steps.
Prepare key documents
You will need a detailed breakdown of the property, including:
- Floorplans
- Freehold or leasehold documents
- Fire and safety reports
- Expected rental income
- EPC ratings for each flat
Work with a specialist broker
Because this is a more complex type of lending, a broker who understands multi-unit mortgages can help you find the right lender and navigate the process.
Choose your lender carefully
Not all lenders will accept high-rise properties. Some have restrictions on building height or the number of storeys. Others may not lend if cladding remediation is required. A broker can match your property with a lender that is open to your investment profile.
Finding the right investment
Buying in the right area is just as important as securing the right mortgage. London has many high-rise developments with strong tenant demand. Look for blocks close to train stations, universities or commercial centres. These are more likely to deliver reliable rental income.
Letting agents with local knowledge can also help you identify buildings with good management history and realistic yields. Ellis & Co has over 160 years of experience supporting landlords across the capital and can offer expert insight on investment hotspots and tenant preferences.
Speak to your local experts
Buying a high-rise block of flats can offer a unique opportunity to scale your portfolio. With multiple rental incomes and strong long-term demand in London, the right property could offer both cash flow and capital growth.
To learn more about securing a mortgage or finding the right block, speak to your local Ellis & Co letting agent today.
