How can we get a mortgage on a freehold flat?

Posted on 18 September 2016 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?

Getting a freehold flat mortgage with no management company in place

Unfortunately you are correct that lenders don't like offering mortgages on 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.

Are there any other options?

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. For more information about the difference between freehold and leasehold properties please feel free to read our Freehold and Leasehold guide.

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.


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