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.
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