Freehold Flat Mortgage

timp2109

Having troubles finding a lender who will offer a deal on a freehold flat. The flat is one of 4 in the building. Each of the owners have shares in the freehold company that was set up.

I used an IFA who tells me that the only company willing to consider lending are Natwest they have since turned down the application.

We are now looking at remortgaging with our existing provider who consequently no longer consider freehold properties for mortgage.

All advice gratefully received!!!:(

ACG

Find another broker.

There are a couple of other lenders who will consider it. Options are very limited and none of the ones I have in my spreadsheet are on the high street.

Also take a step back, do you want to purchase a property where you are struggling to get a mortgage?
What happens if you want to remortgage?
What happens when you come to sell?
Why did natwest decline it?

I can see 4 lenders who may consider it, but criteria can change and that 4 could easily drop.

westv

Surely this isn't a true freehold flat so should be more easily mortgageable?

Annisele

I think you first need to be sure it really is a freehold flat. It sounds like you might own a lease (as is normal for flats) and then part-own the freehold - and if that is the case, you don't have a freehold flat.

True freehold flats are pretty much impossible to mortgage. Leasehold where, in addition, you part-own the freehold are another thing entirely.

DreamerFTB

Annisele wrote: »

True freehold flats are pretty much impossible to mortgage.

Why is that?

amnblog

What you describe is a standard arrangement where the freehold is held by a company which is owned by owners of the titles on each flat.


If each flat also has a separate lease - your IFA has identified a problem that does not exist.


If, the only title is the combined freehold that is very rare and tricky to deal with.


Which is it?