Getting a Mortgage on a Flying Freehold Property: What You Need to Know

If you’re in the market for a unique and charming property in the UK, you may come across the term “flying freehold”. This type of construction refers to a property where part of the building overhangs or underlies another property. Flying freeholdA situation where one property overhangs another property. properties can offer distinct and interesting living space, particularly in older or historic buildings, but they can also present some challenges when it comes to securing a mortgage.

In this article, we’ll take a closer look at what you need to know about getting a mortgage on a flying freehold property in the UK.

What is Flying Freehold Construction?

Property law is notorious for its elusive terms and definitions – and the words flying freehold seem to fit that bill pretty well. On the one hand, common usage determines a straightforward explanation. Yet, the term and the very existence of a flying freehold can raise a red flag for many a solicitor or conveyancer.

The “flying” part of the freehold refers to the fact that the owner has freehold rights to part of a property but not to other parts of the buildings or the ground beneath it.

Scratch just below the surface of what is otherwise a fairly simple concept, and you might appreciate how complicated the issues become – as these examples of flying freeholds identified by Express Conveyancing suggest :

• one of the rooms in your property is built above a shared archway, alley, or passage;
• your balcony projects over another owner’s land;
• your property abuts an adjoining property that it relies on for support (because the buildings are on a steep hill, for example);
• the building is multi-storey, but the layout of the rooms in adjoining properties makes it impossible to form a clear vertical division between the two – similarly, a maisonette or a house where a room or rooms are built below or above another freehold dwelling; or
• a cellar or basement extends below your neighbour’s property.

While there can be many variations on these themes, the principle of a flying freehold holds good – part of the property you own is above, overhangs, or sits underneath someone else’s building or land.

Post Topics

What is a flying freehold mortgage?

What are the eligibility criteria for getting a mortgage on flying freehold property in the UK?

How can I get a mortgage on flying freehold property in the UK?

Obtaining a mortgage on a flying freehold property – is it a challenging process?

What are the problems with flying freehold?

What else do I need to consider with a flying freehold?

Next steps

FAQs

What is a flying freehold mortgage?

A Flying Freehold mortgage is the type of construction mortgage where a part of a building lies over, under or a part of other freehold property. The reasons could be as property overhangs, extends or protrudes onto some other freehold construction or land. In this article, we will clear various misconceptions about mortgages on a flying freehold property. As an experienced broker, we can also help you to get a mortgage for such properties. So, feel free to contact us.

What are the eligibility criteria for getting a mortgage on flying freehold property in the UK?

The eligibility criteria for getting a mortgage on a flying freehold property in the UK are similar to those for a standard property, but there may be some additional requirements due to the unique nature of the construction.

Here are some of the main factors that lenders may consider when assessing your eligibility for a mortgage on underhanging freehold property:

1. Income and employment status: Lenders will want to see that you have a steady income and that you are employed or self-employed. They may also look at your credit history and other financial factors to determine your ability to make mortgage repayments.
2. Deposit: As with any mortgage, you will need to have a deposit in order to secure a loan. The amount of deposit required may be higher for a flying freehold property, as lenders may see this type of property as a higher risk.
3. Legal documentation: You will need to provide legal documentation that shows the extent of the flying freehold construction and any associated rights or restrictions. A solicitor who is experienced in flying freehold properties can help you with this.
4. Property valuation: Lenders will want to assess the value of the property in order to determine the amount of the loan. This may be more complex for a flying freehold property, as the unusual construction can affect the value.
5. Building survey: You may need to have a building survey carried out to identify any structural issues or defects that could affect the property’s value or marketability.
6. Specialist lender: As mentioned earlier, it may be more challenging to secure a mortgage on a flying freehold property with mainstream lenders. You may need to work with a specialist lender who has experience in this area.

It’s important to note that the eligibility criteria can vary depending on the lender and the specific circumstances of the property. It’s always a good idea to consult with a financial advisor or a solicitor who is experienced in flying freehold properties to help you navigate the process.

How can I get a mortgage on flying freehold property in the UK?

Getting a mortgage on a flying freehold property in the UK can be a bit more challenging than getting a mortgage on a standard freehold property. This is because the unusual construction can make it more difficult to determine the exact boundaries of the property, and this uncertainty can make lenders more cautious.

However, it is still possible to get a mortgage on a flying freehold property if you work with a specialist lender who has experience in this area. Here are some steps you can take to increase your chances of getting approved for a mortgage:

1. Work with a solicitor who is experienced in flying freehold properties. They can help you understand the legal implications of the construction and ensure that all necessary paperwork is in order.
2. Have a structural survey carried out on the property to ensure that it is in good condition and that there are no issues that could affect its value or marketability.
3. Be prepared to put down a larger deposit than you might for a standard property. This can help to reassure lenders that you are committed to the property and that you have a stake in its value.
4. Shop around for specialist lenders who have experience in lending on flying freehold properties. These lenders may have more flexible criteria than mainstream lenders, and they may be willing to take a more holistic view of your financial situation.

Remember that getting a mortgage on a flying freehold property can take longer than getting a mortgage on a standard property, so it’s important to start the process early and to be patient. With the right approach and the right support, however, it is possible to secure a mortgage on a flying freehold property in the UK.

To obtain more information regarding mortgages for both standard and non-standard constructions, we recommend exploring our selection of mortgage options for various types of properties.

Obtaining a mortgage on a flying freehold property – is it a challenging process?

The principle of a flying freehold might be straightforward, but it typically throws up issues and problems when trying to track down flying freehold mortgage lenders.

It’s not that it becomes impossible to secure a mortgage for a flying freehold property, but the challenge lies in finding your way around the various rules and differences in policies pursued by various lenders. Although some might give the prospect of lending on a flying freehold a flat rejection, most lenders will at least entertain your application – and consider it on a case-by-case basis.

When making that assessment, some lenders might look at the proportion of the “flying” freehold as a ratio of its total floor area. Other lenders might adopt more stringent tests.

Of course, the decision is the lender’s, and you will play your part by providing as much – honest – information as possible. To do that, you might want to enlist the help of a specialist flying freehold mortgage broker – such as ourselves here at NeedingAdvice.co.uk – before you travel too far down the road of spending tidy sums of money on building surveys, legal fees, and conveyancing costs.

What are the problems with flying freehold?

The problems and issues with flying freeholds all stem from the fact that the respective landowners and freeholders have very limited rights concerning the other’s property or land – unless there is an express agreement that sets out and resolves any such disputes in advance.

A case in point is the difficulty one owner might encounter in persuading the other owner to make essential repairs for the structural integrity of the whole property – on which both naturally depend. In the absence of an express agreement, neither party can force the other to make those repairs – even when there is risk of serious damage to one or both properties.

The problems might be further complicated because neither party has any clear right of access to make essential repairs to the property.

These are just some of the issues that make getting a mortgage for a flying freehold problematic – any lender would prefer a clean title to the property in question.

What else do I need to consider with a flying freehold?

Flying freeholding issues are sufficiently well recognised to have prompted the need for specialist building insuranceInsurance that covers damage to the structure of a property.....

While you would want to arrange building insurance in any case, this specialist – and typically affordable – form of flying freehold insurance provides indemnity against any losses you might incur as a direct result of your form of tenureThe type of ownership or occupation of a property, such as f....

That indemnity is likely to prove well worth your while – and may save you considerable expense if problems arise with your neighbours – but the insurance itself clearly does nothing to change your respective title deedsLegal documents that prove ownership of a property. to the properties or even force a recalcitrant neighbour to allow essential repairs or access.

Next steps

Before you give your solicitor or conveyancer any doubts or reservations about the freehold tenure of a property you want to buy, you might want to seek the advice of a specialist flying freehold mortgage broker such as us here at NeedingAdvice.co.uk.

We can point you in the direction of those lenders likely to be comfortable with your application for a flying freehold mortgage – and save you the wasted time and effort in receiving a rejection that is only likely to cause further problems and your credit rating with future mortgage applications.

FAQs

What should I look out for when buying a flying freehold property?

Flying freehold houses are usually bought as investment opportunities. If you buy an existing house, you will need to check that all relevant documents have been properly filled out and signed. You will also need to check that there aren’t any restrictions on what you can do with the land beneath the house. For example, if you own a house above a shop, you might need permission to demolish the shop to create extra space for parking. If you’re thinking of buying a flying Freestate house and want to understand what they are, make sure you contact us and we’ll put someone in touch with you. We’ll give you all the information you need to make your decision.

How to Get a Non-Standard Construction Mortgage?

’Non-standard’ construction includes many types of buildings including houses, apartment complexes, office buildings, hotels, etc. These structures are built using different materials and techniques than those traditionally used for construction. For example, ‘green’ construction refers to environmentally friendly construction practices.

Can you get a mortgage on a flying freehold?

Yes, you can get a mortgage on a flying freehold property. However, you will still need to apply for a standard construction loan from a bank or other lender. The reason for this is that most banks and other lenders require that you show them proof that the property is constructed according to their standards. This is called ‘conforming construction’. They won’t lend money on non-conforming construction.

What are the drawbacks of such construction?

The drawbacks of freehold construction can be considerable. Firstly, the lack of a standard title can lead to difficulties accessing mortgages, as many lenders are wary of dealing with such properties due to the potential legal complications. Additionally, there is a chance that any disputes or claims arising from the ownership of the property may not be covered by insurance policies, as they are often difficult to define in this type of situation. Finally, freehold construction tends to be more expensive than standard construction, as there is no guarantee that the property can be sold on in the future if required.