Call us on 0344 346 3672
or arrange a callback

How can we get a mortgage on a freehold flat?

Posted on 18 September 2014 by L Mason


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?

Unfortunately you are correct that lenders don't like freehold flats. Depending on the Loan to value, and timescale to get a management company in place, and then create a leasehold title, the only way I can see to do this would be via a bridging loan.

Whilst this is a more expensive type of lending, it is the only suggestion I can come up with at this moment. Typically you'd need to have the loan for 6 months, and then once the management company and leasehold is in place, we 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 0344 346 3672 and they'll be able to give you a clearer idea of how we may be able to help.

Regards,

Simon

More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

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.


Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.