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Question: 5.5.1. Do you lend on freehold flats?
| Lender | Answer |
|---|---|
| Accord Mortgages Ltd | No |
| Atom Bank plc | No |
| Aviva Equity Release UK Ltd |
No |
| 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 |
| 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. |
| Birmingham Midshires |
No. |
| Bradford & Bingley Limited | No |
| Britannia, a trading name of The Co-operative Bank plc |
No |
| Chelsea Building Society (a trading name of Yorkshire BS) |
No. |
| CHL Mortgages |
No, nor Freehold Maisonettes |
| Co-operative Bank plc | No. |
| Coventry Building Society | No, except if the property is in South Tyneside and there are mutually enforceable covenants for support and maintenance of the common parts and the deeds of mutual enforceability are placed with the title deeds. |
| Danske Bank | The Bank will not accept freehold flats as security. |
| DB UK Bank Ltd | No |
| Ecology Building Society |
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 5.5.3 to 5.5.4.2 for other freehold arrangements that would be acceptable |
| First Trust Bank | No |
| GE Money Home Lending Ltd | GE Money Home Lending has withdrawn from the UK mortgage market. |
| Godiva Mortgages Ltd | No, except if the property is in South Tyneside and there are mutually enforceable covenants for support and maintenance of the common parts and the deeds of mutual enforceability are placed with the title deeds. |
| Halifax | No. |
| Halifax Loans Ltd | No. |
| Hampden & Co. plc | |
| 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 5.5.3 to 5.5.4.2 for other freehold arrangements that would be acceptable |
| HSMS | As 1.10a |
| Intelligent Finance | No. |
| ITL Mortgages | No, except if the property is in South Tyneside and there are mutually enforceable covenants for support and maintenance of the common parts and the deeds of mutual enforceability are placed with the title deeds. |
| Kensington Mortgage Company Ltd | No. |
| Landmark Mortgages Limited |
Not normally acceptable. However, the following circumstance 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. Refer to: New Mortgage Completions Landmark Mortgages PO Box 656 Durham DH1 9LY Tel - 0330 159 7152 |
| Leeds Building Society | No. |
| Lloyds Bank plc | 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 |
| Mortgage Express |
No |
| Mortgage Express (No 2) | 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 5.5.3 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 5.5.2.2 to 5.5.2.4 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. |
| New Street Mortgages | No. |
| NRAM Ltd | |
| Platform (a trading name of The Co-operative Bank p.l.c.) | No |
| Rooftop Mortgages Ltd | No |
| 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 5.5.3 of the Lenders' Handbook. |
| Scottish Widows Bank | No. |
| The Mortgage Business |
No. |
| The Royal Bank of Scotland plc |
Yes, provided the loan is less than 90% of the valuation. |
| TSB Bank plc | No |
| UCB Home Loans Corporation Ltd | No |
| Ulster Bank |
Yes, provided the loan is less than 90% of the valuation. |
| 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 the other flat(s) in the block are all leasehold. |
| Yorkshire Building Society | No |