How can you get a mortgage on a freehold flat?

Answered on 18 September 2019

My husband and I have fallen in love with a property. It's a freehold flat and one of 4 or 5 in an old building, there is no management company in place. We are prepared to purchase specialised buildings insurance if we get the property until such management company can be put in place. We cannot, however, find a lender that would lend on a freehold flat with no management company in place. Can you suggest anything?

Getting a freehold flat mortgage with no management company in place

While it is unlikely you will find a mortgage on a freehold flat, you may be able to obtain a bridging loan.

Bridging Loans as an Alternative

Bridging loans are a short term funding option typically used by property buyers to ‘bridge’ the gap  when buying a new property and waiting for a traditional mortgage to be approved or  capital to be released from the sale of their current home. Typically you'd need to have the loan for 6 months, and then once the management company and leasehold is in place, you could look to remortgage to a standard lender as the exit stratgey.

If you'd like to explore this option in more detail, then please contact one of our consultants on 0330 433 2927 and they'll be able to give you a clearer idea of how we may be able to help. For more information about the difference between freehold and leasehold properties please feel free to read our Freehold and Leasehold guide.

Ask The Mortgage Experts answers are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.


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