Multi Landlord Governance: Votes and Dispute Resolution
A practical UK guide to multi landlord governance, explaining voting rights, deadlock clauses and dispute resolution for BTL investors and joint homeowners
11/05/2026By Sunil Chander · Co-Founder
Multi landlord ownership is no longer niche in the UK. It underpins a large share of Buy to Let portfolios, family backed purchases, and joint arrangements between friends or partners. This article explores how multi landlord governance works in the UK, why it matters now, and how it differs for landlords and residential buyers.
What Multi Landlord Governance Means in Practice
Multi landlord governance refers to the rules and processes that determine how decisions are made when more than one party owns or controls a property. In the UK, this commonly arises through limited companies or Special Purpose Vehicles (SPVs), Limited Liability Partnerships (LLPs), and joint ownership by individuals as tenants in common or joint tenants. It also appears in informal arrangements, for example where deposits are pooled, a house loan guarantor is used or family members support affordability.
Multi landlord governance determines who can act, what level of consent is required and what happens when owners disagree. In company and partnership structures, this is set out in shareholder or partnership agreements. Where individuals are joint owners, it is usually documented in a declaration of trust.
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Voting rights determine how decisions are made and approved. Record keeping, such as board minutes, provides evidence of authority. Deadlock clauses define what happens when agreement cannot be reached. Dispute resolution mechanisms aim to resolve conflict without destroying asset value.
Market Context and Why Governance Matters
Since 2022, UK mortgage pricing has changed rapidly. By late 2024, the Bank of England base rate remained well above pre-2022 levels, compared with 0.1 percent in late 2021 [1]. Over the same period, average effective interest rates on outstanding Buy to Let mortgages rose above 5 percent, from under 2.5 percent in 2021 [1].
Pressure is visible in arrears data. In Q4 2024, 0.65 percent of Buy to Let mortgages were in arrears, higher than levels seen in the years immediately following the pandemic [2]. Although still low by historical standards, this trend has sharpened focus on cash flow discipline and collective decision making.
On the residential side, joint ownership remains common, particularly among first time buyers facing high price to income ratios in England [3]. Larger deposits are frequently assembled through family support, joint buyers or guarantor arrangements, introducing governance considerations even where the property is owner occupied.
The Buy to Let Governance Lens
Leverage, tax exposure and shared control mean that unclear rules can quickly translate into financial stress.
Cash Flow, Yield and Stress Testing
Consider a jointly owned rental property held in an SPV:
The gross rental yield is 5.2 percent. Most lenders apply interest coverage ratios ICRs of 125 percent to 145 percent, depending on lender policy and borrower profile [4]. At a 145 percent stress test, required annual rent would be £17,944, meaning this property fails affordability unless personal income is used to top slice.
Without agreed voting rules, a single dissenting owner can prevent action.
Tax and Structural Considerations
Section 24 of the Finance No.2 Act 2015 restricts mortgage interest relief for individual landlords, replacing it with a 20 percent tax credit regardless of income band [5]. This restriction does not apply to limited companies.
Bank of England data shows that incorporated landlords account for a growing share of new Buy to Let lending [6]. Company structures bring governance advantages, but also formal obligations. Shareholder agreements typically cover dividend policy, director authority, profit retention and the process for introducing or removing a property partner.
Rates, Products and Refinancing Decisions
Most Buy to Let lending is written at 60 percent to 75 percent LTV, with pricing premiums above 65 percent and arrangement fees of 1 percent to 3 percent of the loan still common [4]. Refinancing and product transfers dominate activity. In 2024, over 60 percent of Buy to Let mortgage activity related to remortgaging or product switching rather than new purchases [2].
Governance disputes often surface at refinance points. One owner may prefer to lock into a fixed rate, while another wants flexibility or to reduce leverage. Clear authority rules reduce the risk of missed deadlines and costly defaults onto variable rates.
Governance Mechanics That Matter
Board Minutes and Authority
For company owned property, board minutes are essential. Company law requires directors to keep records of decisions. Lenders and accountants rely on these records to confirm authority when borrowing, selling or restructuring debt.
Accurate minutes reduce ambiguity when a director exits, a property is sold or dividends are deferred. If disputes arise, they provide evidence of what was agreed and when.
Voting Rights and Reserved Matters
Voting rights usually follow shareholding but can be weighted differently. Many agreements distinguish between ordinary decisions, special resolutions and reserved matters. Reserved matters often include property sales, additional borrowing or changes to dividend policy.
While these protections prevent unilateral action, they can create deadlock if unanimity is required too frequently. Effective governance balances protection with operational flexibility.
Deadlock Clauses and Dispute Resolution
Deadlock clauses define the route forward when agreement cannot be reached. Common mechanisms include cooling off periods, referral to an independent accountant or surveyor, and buy and sell provisions that force one party to make or accept an offer.
Financial dispute resolution is usually preferable to litigation. Mediation, expert determination or arbitration can usually resolve issues faster and at a lower cost, helping preserve asset value during periods of market stress.
The Residential and First Time Buyer Perspective
Governance is often overlooked in residential purchases, but joint ownership still carries risk.
Affordability and Deposit Structures
Two first time buyers purchasing a £350,000 home with a 15 percent deposit £52,500 borrow £297,500 on a 30-year term at 4.8 percent fixed. Monthly repayments are around £1,560. If one buyer’s income falls, both remain jointly and severally liable, regardless of private agreements.
Declarations of trust are commonly used where deposits are unequal, or family support is involved. They set out how equity is split on sale and can include exit mechanisms if circumstances change.
Mortgage Type Decisions
Choosing between fixed, tracker or offset products can create tension. Average two year fixed residential rates peaked above 6.5 percent in 2023 before easing through 2024 [1]. Timing decisions around remortgaging affect affordability and risk exposure for both parties, underlining the value of agreed decision frameworks.
Practical Steps for Multi Owner Borrowers
Start by identifying the ownership structure and associated liabilities. Document voting rights clearly and define reserved matters. Agree exit routes and deadlock mechanisms early, not during a dispute. Stress test cash flow and affordability under higher rates. Review governance at refinance points or when ownership changes. Professional advice is often cost effective when structures become more complex.
FAQs
Q. What is multi landlord governance?
A. It is the framework of rules and processes that govern decision making, profit sharing and dispute resolution when a property has more than one owner.
Q. Are board minutes legally required for property SPVs?
A. Directors must keep records of decisions, and lenders may request them during refinancing or additional borrowing.
Q. What happens if owners cannot agree on refinancing?
A. Deadlock clauses usually apply, often involving mediation or a buyout mechanism to prevent prolonged inaction.
Q. Does Section 24 apply to company owned rental property?
A. This restriction applies to individual landlords, not limited companies [5].
Q. Are joint residential borrowers equally liable for the mortgage?
A. Yes, lenders treat borrowers as jointly and severally liable, regardless of private arrangements.
Q. Is mediation cheaper than going to court?
A. In most cases, yes. Mediation and arbitration are typically faster and less costly than litigation.
About the author
Sunil Chander
Co-Founder
Sunil oversees operations and compliance at Pauzible, drawing on his extensive experience as the founder and CEO of Dawnbud Limited, a financial services consulting firm. His prior career included senior roles in investment banking at Smith New Court and NatWest. He holds an MBA from LBS, M Litt from Oxford and a PhD from Cambridge.
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