Freehold flat

[Priesty]

Why are mortgage lenders so reluctant to lend on a freehold flat? I can only find 1 or 2 that are prepared to allow it.

[Miss Zippy]

Basically, it is because the lenders do not like the  fact that the owners are effectively left to their own devices as far as repair and maintenance is concerned. The lenders fear that if a block of freehold flats have no  external landlord or separate management company collecting a service charge and arranging maintenance and repairs, then the work won't get done and the properties will fall into disrepair. Have you tried Nationwide? I've had two mortgages for freehold flats with them in the past.

[Didwot]

If the flat is a genuine "flying freehold" then it is the sort of thing that makes lawyers weep, because such a concept is difficult to reconcile with English property law. If it is part of a block of flats, and the owners of the flats also own a company which owns the freehold then there should be problem. There is also a new form of owenrship called "commonhold" which should be OK as well.