Freehold flats What mortgages

[Bert365]

Im thinking of buying this freehold flat does anyone know what banks will lend on a freehold flat any advise please

 

[Storer68]

i suspect they will lend money

 

[Chicken Run]

Im thinking of buying this freehold flat does anyone know what banks will lend on a freehold flat any advise please

US is the man to ask, a genuine expert however as an Estate Agent of 25years Freehold Flats I.e where there is no lease for the individual flat are very hard to sell and often a great risk to the lender, when times were good not so long ago I could count on one hand how many lenders who would consider and i mean consider! Is this a flat where the is just one other above/below or a block? You also need to condier when you re sell, imho a freehold flat should be at leat 10% less than an ordanary leasehold flat due to the restrictive lending criteria hope that helps.

 

[The Clown of Pevensey Bay]

One hundred thousand pounds. Nothing else.

 

[seagullsovergrimsby]

Probably twice your annual salary at the moment providing you have a 80% deposit.

 

[beorhthelm]

surely you mean share of the freehold?

 

[Uncle Spielberg]

The Royal Bank of Scotland is the way to go. PM me for rates.

 

[Uncle Spielberg]

There's leasehold flats - all lenders will lend
There's leasehold, share of freehold flats - nearly all lenders will lend
There's freehold flats - a handful of lenders will lend
There's flying freehold - a handful of lenders will lend

 

[Uncle Spielberg]

The Royal Bank of Scotland is the way to go. PM me for rates.

Or First Active.

 

[Uncle Spielberg]

AS CR says consider that if you / when you sell your purchaser will also have very limited lending options.

 

[Uncle Spielberg]

Scarborough Building Society
Halifax Plc may do it

 

[bailey]

US - why are lenders less interested in freehold flats?

Surely there's more risk with leasehold, e.g. lease gets defaulted if the ground rent's not paid, freeholder may not maintain the building properly?

I'm sure you're right, just interested really....

 

[John Byrne]

I always thought freehold flats were a no no.

Can be difficult when needing to get repairs sorted for the outside of the building and can cause major problems.

 

[Gazwag]

I'm feeling a bit dense this morning, what is a freehold flat, is it like a leasehold but you share ownership of the land with the other flat owners rather than the land being owned by a third party.

 

[Uncle Spielberg]

US - why are lenders less interested in freehold flats?

Surely there's more risk with leasehold, e.g. lease gets defaulted if the ground rent's not paid, freeholder may not maintain the building properly?

I'm sure you're right, just interested really....

With a freehold flat there is no legal requirement for works to be done on the flat. The freehold is owned by the owners of the flat and if they want to do no work on the property and let it fall into a state of disrepair they can much like a house which is freehold but lenders view several people agreeing on things riskier.

 

[Chicken Run]

With a freehold flat there is no legal requirement for works to be done on the flat. The freehold is owned by the owners of the flat and if they want to do no work on the property and let it fall into a state of disrepair they can much like a house which is freehold but lenders view several people agreeing on things riskier.

And keeping things simple stupid if your flat is under or over said freehold flat that has fallen into a state of dis repair i think you will agree the value of yours will be compromised and with the mortgage being secured on the value you understand why lenders are concerned! When the is a freehold house converted into the flats the individual flats will have a lease with responsibility toowards upkeep

 

[sully]

Or First Active.

First Active being part of RBS, surely?

I had a mortgage with First Active on my flat. When I wanted to sell and the flat was empty, I wanted to pay interest only until the sale, as I couldn't afford to keep paying the repayment part. In order to do so, I had to remortgage with RBS, as First Active don't offer an interest only option.

Better to stick with RBS in the first place for the flexibility, it seems.

No difference in the rates offered when I did the switch, by the way. Just an administative waste of time and money - for the bank!

 

[Emily's Mum]

I could bore for England on Freehold Flats, having worked in mortgage securities for 20 years. HSBC might be worth a try, although the valuations are now worked offshore & I'm not sure if we stopped doing freehold flats then. Mind you, all of the mortgage decision making has been taken out of the branches so you don't get anyone with local knowledge making the decision.

Worthing has always had a lot of freehold flats & the Portman Building Society used to do mortgages on them, but I doubt if the Nationwide will do them now that they have taken over the Portman.

 

[Uncle Spielberg]

Also the maximum loan to values will differ between the lenders but you will need at least a 10% deposit.

 

[Uncle Spielberg]

Chicken Run - who does your mortgages at your estate agents ?.