Answers for England and Wales

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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.
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
Jubilee House
Gosforth
Newcastle upon Tyne
NE3 4PL

or DX 60350 Gosforth

Solicitors Helpline: 0845 604 4858

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