Mortgages for Leasehold Houses

Our Mortgage Service for Leasehold Houses

Getting a mortgage if you have a leasehold on the house or flat you are looking to buy or remortgage can bring with it a range of complexities when arranging mortgage finance. Our mortgage service offers:

• Whole of market service - we work with most UK lenders who will consider leasehold properties

• Access to leading market mortgage rates 

• Access to exclusive mortgage deals 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 on top of your existing mortgage or buy to let mortgage? - we have access to a range of innovative finance solutions

To investigate your mortgage options if you are looking to buy a leasehold flat or house call our specialist mortgage team on 0117 403 4474 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. 

As your mortgage is such an important transaction, good advice is imperative.

Getting the best mortgages for leasehold houses

Unlike flats or apartments, most houses tend to be sold freehold – meaning that you buy the building and the land it stands on outright. However, some houses, such as those under shared ownership schemes, are always leasehold.

Owning a leasehold house means that you have the right to live in the house until the lease expires, but do not actually own the land. Therefore, if you want to purchase a leasehold house you may potentially find it a little more complicated to obtain the mortgage deal that you are seeking, because leasehold mortgages for houses are not overly familiar to many standard mortgage lenders.

What is the difference between a leasehold and freehold house?

When you look at buying a property, the listing will indicate whether you are buying the leasehold or freehold.  Buying a freehold house means that you own the building and the land it is built on, as well as any land that is included in the freehold such as a private garden. The property belongs to you either to sell it on to a new buyer, or leave it to another person as part of your estate when you die. Some of the features of freehold houses include:

• No annual ground rent to pay

• No maintenance charges or accountability to a freeholder

• No issues with the length of the lease running out

• You have responsibility for the maintenance of the building and can renovate it as you wish, subject to planning regulations

The purchase of a leasehold house, in contrast, means that you have essentially bought the right to use the property for the number of years left on the lease. This number is usually quite high – often in excess of 100 years.

It is vital to know the length of the lease before you consider a purchase, as buying a leasehold property with plenty of time left on the lease gives you the right to occupy the property for over many decades. Some of the features of a leasehold house include:

• The need to pay maintenance fees and/or service charges each year

• The need to pay annual ground rent

• The need to get permission from the freeholder to make any major changes to the property

Can I get a mortgage for a leasehold house?

Some leasehold houses may be more straightforward to find a mortgage for than others. As an example, houses purchased under a shared ownership scheme may be easier to buy in this way. Shared ownership schemes are sometimes offered by housing associations, and entail you buying a share in your home and paying rent on the remaining share.

If you want to buy a leasehold house using a mortgage, you may find that the process is easier if you obtain specialist, independent advice before making a decision. Our dedicated whole of market mortgage team can help you to locate the right leasehold house mortgage deal for you – call us today on 0117 403 4474 or request a callback.