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Question: 5.7.1. Does the lender lend on freehold flats?
| Lender | Answer |
|---|---|
| Accord Buy to Let | No. |
| Accord Mortgages Ltd | No. |
| Adam & Company |
No, but may be accepted with our prior written approval. Please refer individual cases. See 1.11 |
| Adam & Company International |
No, but may be accepted with our prior written approval. Please refer individual cases. See 1.11 |
| Ahli United Bank (UK) plc | No |
| Aldermore Bank PLC | No, except for coach house flats where there is one flat above garages and/or access way. |
| Allied Irish Bank (GB), a trading name of AIB Group (UK) | Refer to AIB Group (UK) plc, Central Securities (GB), 92 Anne Street, Belfast, BT1 3H |
| April Mortgages | No |
| Atom Bank plc |
Not normally acceptable. However, the following circumstances maybe acceptable:- • There is a leasehold interest in the flat and the reference to freehold relates to a share of the freehold interest in the block; • The other flat(s) in the block are all leasehold; or • There are reciprocating lease/freehold arrangements (such as Tyneside Flat situation). For any other cases or where clarification is required, please refer to Mortgages Team, as per 1.11. |
| Aviva Equity Release UK Ltd | No. |
| Bank of China | No, nor freehold maisonettes. |
| Bank of Ireland (UK) plc | No. |
| Bank of Ireland as Bank of Ireland Mortgages | No. |
| Bank of Scotland Beginning A | No |
| Bank of Scotland Beginning O | No |
| Bank of Scotland Private Banking | |
| Barclays Bank UK PLC |
Freehold flats and maisonettes are not considered suitable as security for mortgages. Enfranchised properties are acceptable, where the leaseholders collectively own the freehold of the block/whole property. |
| Barnsley Building Soc, a trading name Yorkshire Building Soc | No. |
| Better HomeOwnership (Mortgages) | No |
| Birmingham Bank | No |
| Birmingham Midshires | No |
| Bluestone Mortgages | No. |
| Bradford & Bingley Limited | No |
| Britannia, a trading name of The Co-operative Bank plc | No |
| Buckinghamshire Building Society | No |
| Chelsea Building Society (a trading name of Yorkshire BS) | No. |
| CHL Mortgages | No, nor freehold maisonettes |
| Clydesdale Bank plc | No. |
| Co-operative Bank plc | No. |
| Coutts | No, but may be accepted with our prior written approval. Please refer individual cases. See 1.11 |
| Coutts Finance Co | No, but may be accepted with our prior written approval. Please refer individual cases. See 1.11 |
| Coventry Building Society | No, except for Tyneside flats where there are mutually enforceable covenants for support and maintenance of the common parts. |
| Cynergy Bank | No. |
| Danske Bank | The Bank will not accept freehold flats as security. |
| Darlington Building Society | No. |
| DB UK Bank Ltd | No |
| Dudley Building Society |
Freehold Flats are not acceptable, unless they are: • Modern coach houses • Single property, freehold, separate titles (where the applicant owns one unit in a block and owns the freehold of all flats, subject to the other flats being leasehold) |
| Ecology Building Society | No |
| Family Building Soc (a trading name of National Counties BS) | No. |
| First Direct |
Not generally acceptable, however we may be able to lend on freehold flats in the following circumstances: • There is a leasehold interest in the flat and the reference to freehold relates to a share of the freehold interest in the block; • The property is a Coach house and is subject to suitable buildings insurance and acceptable lease of garage; Please also refer to 5.8.1 to 5.8.5 for other freehold arrangements that would be acceptable |
| Fleet Mortgages | No |
| Foundation Home Loans | No, except for South Tyneside flats where there are mutually enforceable covenants for support and maintenance of the common parts (where the applicant owns one of two units in the block under a freehold title, subject to the other flat being leasehold). |
| Furness Building Society | No |
| GE Money Home Lending Ltd | GE Money Home Lending has withdrawn from the UK mortgage market. |
| Gen H | No. |
| Godiva Mortgages Ltd | No, except for Tyneside flats where there are mutually enforceable covenants for support and maintenance of the common parts. |
| Habito | Generally no, but please contact us as per the contact details 1.11 |
| Halifax | No |
| Halifax Loans Ltd | No |
| Hampden & Co. plc | No, but may be accepted with our prior written approval. Please refer individual cases. See 1.11. |
| Handelsbanken | No. |
| Harpenden Building Society |
Generally, no |
| Hinckley and Rugby Building Society | No. |
| Hodge | No |
| Hodge Equity Release | No |
| Holmesdale Building Society | No. |
| HSBC UK Bank plc |
Not generally acceptable, however we may be able to lend on freehold flats in the following circumstances: • There is a leasehold interest in the flat and the reference to freehold relates to a share of the freehold interest in the block; • The property is a Coach house and is subject to suitable buildings insurance and acceptable lease of garage; Please also refer to 5.8.1 to 5.8.5 for other freehold arrangements that would be acceptable |
| Intelligent Finance | No |
| Investec Bank plc | Accepted, subject to our prior written approval. See 1.11. |
| ITL Mortgages | No, except for Tyneside flats where there are mutually enforceable covenants for support and maintenance of the common parts. |
| JPMorgan Chase Bank, N.A. | No. |
| Kensington Mortgage Company Ltd | Please refer to Kensington |
| Kent Reliance (a trading name of OneSavings Bank plc) | No |
| Keystone Property Finance | No |
| Landbay Partners Limited | No. |
| Landmark Mortgages Limited |
Not normally acceptable. However, the following circumstances maybe acceptable:- ? where there is a leasehold interest in the flat and the reference to freehold relates to a share of the freehold interest in the block; ? where the other flat(s) in the block are all leasehold; or ? where there are reciprocating lease/freehold arrangements (such as Tyneside Flat situation). Refer to: New Mortgage Completions Landmark Mortgages PO Box 656 Durham DH1 9LY Tel - 0330 159 7152 |
| Leeds Building Society | No. |
| Legal & General Home Finance Ltd | No. |
| LendInvest | No |
| LiveMore Capital |
Freehold flats are acceptable where the freehold is in respect of the whole building, subject to leases/tenancies in the remainder of the block. |
| Lloyds Bank plc pre fixed 20/40 | No. |
| Lloyds Bank plc pre fixed 50/30/77 | No |
| Lloyds TSB Scotland plc | No |
| M&S Bank | We will only accept freehold flats where the security will comprise the freehold of the full building within which the flat is contained or where the legal arrangements for freehold flats are satisfactory and accepted in the local market (for example, in Scotland) |
| Magellan Homeloans | No |
| Manchester Building Society | No. |
| Market Harborough Building Society |
No |
| Masthaven Bank | No. |
| Metro Bank plc | No. |
| ModaMortgages |
No. |
| Molo Finance | No. |
| Monmouthshire Building Society | No. |
| Mortgage Agency Services | No |
| Mortgage Express | No |
| Mortgage Express No 2 | |
| MPowered Mortgages | No |
| National Counties Building Society | No. |
| National Westminster Bank plc |
Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| Nationwide Building Society |
Generally no Exceptions- i)see 5.8 ii)coach house flats - where there is one flat in a block built above garages and/or an access way there is no need to report details to us. If there is an element of flying freehold - the requirements in part 1 paragraphs 5.7.2 must be adhered to. Insurance - where the purchaser arranges insurance on more than one garage or garages owned/used by other parties, please ensure that the insurance company is aware of the arrangements. iii) for properties in the parish of Hebden Royd see 5.7.1a above. |
| Nedbank Private Wealth Ltd | You must refer to us. |
| New Street Mortgages | No |
| NRAM Ltd |
Not normally acceptable. However, the following circumstances may be acceptable:- 1. where there is a leasehold interest in the flat and the reference to freehold relates to a share of the freehold interest in the block; 2. where the other flat(s) in the block are all leasehold; or 3. where there are reciprocating lease/freehold arrangements (such as a Tyneside flat situation) Refer to 11.1a |
| Paragon Buy to Let Mortgages | No |
| Paragon Residential Owner-Occupied Mortgages | No. |
| Paratus AMC Ltd | No. |
| Parity Trust | Yes |
| Pepper Money | No, subject to the exceptions contained in section 5.8.1 - 5.8.5 of part 1. |
| Pepper Money (PUK) | No, subject to the exceptions contained in section 5.8.1 - 5.8.5 of part 1. |
| Perenna |
Not normally acceptable. However, the following circumstances are acceptable: - o There is a leasehold interest in the flat and the reference to freehold relates to a share of the freehold interest in the block; o The other flat(s) in the block are all leasehold; or o There are reciprocating lease/freehold arrangements (such as Tyneside Flat situation). For any other cases or where clarification is required, please contact our Mortgage team by either telephone: 0330 341 2013 or Email: conveyancing@perenna.co.uk |
| Platform (a trading name of The Co-operative Bank p.l.c.) | No |
| Precise Mortgages (Charter Court Financial Services Ltd) |
Residential & Buy-to-Let Lending - no. Bridging Lending - only if conversion to an acceptable leasehold will be undertaken simultaneously with completion of the loan. |
| Principality Building Society |
No If you need to discuss this further please contact us and await our reply: Mortgage New Business PO Box 89 Queen Street CARDIFF CF10 1UA 0330 333 4021 . |
| Reliance Bank Ltd | No |
| Rooftop Mortgages Ltd | No. |
| Saffron Building Society | We do not lend on freehold flats, maisonettes or coach house flats. |
| Sainsbury's Bank | Freehold flats are not allowed unless the borrower owns the freehold of the whole building, or freehold reversion/Tyneside arrangements apply and there are no more than four flats in the building. |
| Santander UK plc | No, but we will lend if the flat comes within 5.8.1 to 5.8.5 of the Handbook. |
| Scottish Building Society | No |
| Scottish Widows Bank | No. |
| Secure Trust Bank PLC | No. |
| Skipton Building Society | No. Freehold flats in Scarborough and Tyneside only may be approved -please contact Completions Team via LMS Secure Link . |
| St James Place Bank |
No. |
| State Bank of India UK | No. |
| Swansea Building Society | No |
| The Mortgage Business | No |
| The Mortgage Lender Limited | No |
| The Mortgage Works | No, except for coach house flats where there is one flat above garages and/or access way |
| The Royal Bank of Scotland plc | Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| The Royal Bank of Scotland plc Direct Line Mortgages | Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| The Royal Bank of Scotland plc Direct Line One | Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| The Royal Bank of Scotland plc First Active | Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| The Royal Bank of Scotland plc Natwest one Account | Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| The Royal Bank of Scotland plc One Account | Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| The Royal Bank of Scotland plc Virgin One | Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| The Tipton & Coseley Building Society | No. |
| Together Personal Finance Limited | Yes. |
| Topaz Finance Ltd | Generally no. You may refer, however, if the Security is adequate and you are able to satisfy 5.5.2 and provide indemnity insurance. |
| TSB Bank plc | No |
| Ulster Bank | Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%. |
| Vida Homeloans | Freehold flats are not acceptable to us, unless the property is a singular coach house flat above no more than 4 enclosed garages, where the flat owner will use at least 1 of the garages and the others are used and are subject to acceptable leases by owners of neighbouring properties and is subject to suitable buildings insurance which includes the main walls to the garages in the insurance figure, and any of the requirements in paragraph 5.7.2 of Part 1 are satisfied. |
| Virgin Money |
No. However, refer to: Mortgage Processing Operations Virgin Money Gosforth Newcastle upon Tyne NE3 4PL Solicitor Helpline: 0845 604 4858 Solicitor Email: postoffer@virginmoney.com v We may consider lending where: - a leasehold interest in the flat also exists and the reference to the freehold relates to a share of the freehold interest in the block: - the other flat(s) in the block are all leasehold; or - there are other reciprocating lease/freehold arrangements (such as Tyneside Flats). |
| Whistletree (a trading name of TSB Bank plc) |
Not normally acceptable. However, the following circumstances maybe acceptable:- ? where there is a leasehold interest in the flat and the reference to freehold relates to a share of the freehold interest in the block; ? where the other flat(s) in the block are all leasehold; or ? where there are reciprocating lease/freehold arrangements (such as Tyneside Flat situation). Refer to New Mortgage Completions, other details as 1.11a. |
| Yorkshire Bank Home Loans Ltd | No. |
| Yorkshire Building Society | No. |
| Zephyr Homeloans | Zephyr does not lend on freehold flats |