Mortgages for Freehold Flats
Our Mortgage Service for freehold flats
Arranging a mortgage if you have a freehold flat or you own a flat(s) as a buy to let landlord can bring with it a range of complexities when arranging mortgage finance. Our mortgage service offers:
- Whole of market service - we work with UK lenders who will consider lending on freehold flats
- Great Rates! - Access to leading market mortgage rates
- Exclusive Deals - exclusive mortgages not available on high street
- Specialist lenders - who will lend on flats above shops and on high rise apartments
- Fast turnaround - speak to us today if you need to move quickly
- We have lenders who will take into account previous credit issues
- Looking to raise additional finance? - we have access to a range of innovative finance solutions
To investigate your mortgage options if you are a looking to buy a freehold flat call our specialist mortgage team on 0117 313 7780 or fill in our callback request form.
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
Mortgages for freehold flats
A true freehold flat is something of a rarity because flats generally share land space with other properties. Therefore, if you buy a freehold flat you could find that you run into certain difficulties with getting the mortgage deal that you want as many mortgage lenders will not be certain of the complexities involved in freehold mortgages for flats.
What is the difference between leasehold and freehold property?
Essentially there are two main types of property ownership – leasehold and freehold. Some flats are owned as a variant of freehold called commonhold, where all owners in a block share ownership of the communal spaces plus their flat as a freehold, but this setup is fairly new to the market and is quite rare.
If you own the freehold on a house, this means that you own the property and the land it is built on until you sell it or bequeath it to someone else. Houses are generally freehold properties – when you purchase a house you usually own the house plus any land that is included on the freehold such as a garden or parking space. Downsides of freehold include full responsibility for all repairs and maintenance on the house and the land. However, you have the benefit of being able to do what you like with the property, subject to regulations and planning permission.
Owning a leasehold property, on the other hand, means that you have bought the right to live in the building, but not the building and land itself. The freehold will be owned by another person. Leasehold terms are usually very long – at least 80 to 999 years - and buying a leasehold property with plenty of time left on the lease gives you the right to occupy the property for over many decades.
This set up is more commonly found in flats – for example, each flat owner in a block will own their flat on a leasehold basis, but the freehold on the building itself will be owned by someone else. Sometimes flat owners band together to buy shares in the freehold of their block of flats, but it is usually the case that even if you own a share in the freehold of a flat, you may still be counted as owning it on a leasehold basis.
A true freehold flat is therefore something of a rarity and not a situation that a mortgage lender is likely to encounter frequently.
Getting a mortgage for a freehold flat
Some freehold flats are likely to be easier to mortgage than others. For example, if the flat is the only flat in the block – perhaps built over garages in a coach house style – then a mortgage lender may be more willing to offer you the mortgage deal that you want. Other types of freehold flat may prove more complicated when it comes to getting a mortgage deal.
Many mortgage lenders will not accept freehold flats or maisonettes, even if each flat in a block has its own separate freehold title. However, if you own the block the flat is in – i.e. you are the occupier of the flat and the owner of the whole block which you let out to tenants – then you may find it easier to obtain a mortgage deal. However, you may find that if you have over a certain number of flats in the building, it will be treated as a commercial mortgage.
If you want to buy a freehold flat using a mortgage, you should obtain specialist advice. Our dedicated whole of market mortgage team can help you to locate the right freehold flat mortgage deal for you – call us today on 0117 313 7780 or request a callback.