Can I raise capital on the freehold of a converted house?

Posted on 1 September 2012 by Fernando

My partner and I own the freehold of a house converted into two flats.  We also own the individual leases.  Each lease has about 60 years to run.  We need to raise some capital to improve the bulding and have wonder whether we could obtain a mortgage on the freehold interest of the property?. If yes, what is the name of such a mortgage, we have not managed to find any information on the net.


As the owners of the freehold you should be able to remortgage the house and raise the capital you require.  The amount you can borrow will be limited by your earned incomes and will not be assessed against any rental income from the flats.

I suspect that lenders will be looking for the leasehold titles of the flats to be held in different names to the freehold and if this is not the case then there may be a delay whilst the legal paperwork is sorted out.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.


Answers provided in response to Ask the experts 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.

You are currently offline. Some pages or content may fail to load.