Success in complex property deals demands more than ambition - brokers need deep lender insight, tools, and time
For brokers accustomed to churning out standard buy-to-let cases, the leap into more complex transactions, such as HMOs, multi-unit blocks, or development finance, can feel like navigating a different industry. But with profit margins tightening and landlords looking to scale, understanding how to approach these deals is becoming less optional.
Know your leases, lenders, and legal risks
"You can't go into this blind," said Mitesh Manek, Specialist Broker at Our Mortgage Broker. "Brokers often make the mistake of relying on basic criteria and placing a deal assuming it fits. But when the case hits underwriting or at legal stages, lease agreements or ASTs can cause the case to decline."
Manek emphasizes the complexity of transactions involving social housing, assisted living, or corporate leases. "Brokers forget to ask: are tenants unrelated? Is there a lease? How long is the lease? Is there a break clause? Who's it between - the council, a company? You need to get draft leases upfront and understand what the lender will flag."
Even after a mortgage offer is issued, he notes, a deal can fall apart if key documents don’t align with lender criteria. "The work upfront is critical. And the lender market for these cases is smaller, so you can't just rely on headline rates."
Time is money, and a lot more time is needed
One of the biggest hurdles is time. "With complex clients, there's a lot of admin. Lenders will generally stress-test background portfolios, and some require manual data entry for every property. If a client owns 20, that’s hours of work," Manek said.
The learning curve is steep. "You need a lender matrix ready. Know your top three to four go-to lenders for HMOs, development or bridging. Build those relationships, especially with office-based BDMs or field based BDMs who can turn things around quickly."
He credits Fleet Mortgages for pre-underwriting lease-based cases - a rare service that gives brokers and clients early confidence. "That kind of support is gold," Manek said.
Mindset and mentorship matter
Manek believes many brokers hesitate because they lack structure. "It’s not fear, it’s mindset. Without experience, there’s no framework for how to approach these deals."
He recommends tools like Knowledge Bank and BrickFlow as starting points, but stresses the value of peer connections. "Talk to other brokers. Find someone who’s done it. You’ll get more from that than a newsletter."
He recalls referring a couple of business loan cases during COVID to a specialist broker. "We knew it wasn’t our area of expertise. It’s smarter to collaborate than burn time on cases that may not complete."
Emerging opportunities and hidden costs
Where's the growth? "Commercial-to-resi conversions are huge," said Manek. "Clients are picking up warehouses and empty offices, bridging the purchase, and converting. If there's profit in the deal, they’ll finance it."
He’s also seeing landlords buying in bulk at below-market prices. "Some are restructuring portfolios - offloading five, keeping five. That opens up opportunities for brokers who understand complex finance."
Still, development finance is not for everyone. "You need patience. Deals take 18 to 24 month and If a valuer disagrees with projected profits, the whole case stalls. You might need second charges or mezzanine finance to plug gaps."
A call for better systems
Manek notes one of the industry's pain points is lender tech. "Slow underwriting systems kills deals. If an underwriter raises a query and you lose three days, then wait another three days for a response, it's exhausting. Speed matters more than rate for many clients."
For brokers eyeing the leap into complex property finance, the path is paved with detail, diligence, and dialogue. Those willing to do the homework and build the right relationships will be best placed to grow alongside their scaling landlord clients.
