Mortgages for Freehold Flats & the Best Lenders

At Strive Mortgages, we’re specialists in helping clients secure mortgages for all types of flats — from leasehold to share of freehold and, more unusually, freehold flats. If you already own a freehold flat or are considering buying one, you may have heard that mortgages can be trickier to obtain. The good news? With the right advice, it’s possible.

In this guide, we’ll explain:

• What freehold flats are (and how they differ from leasehold and share of freehold)
• Why lenders are cautious with outright freehold flats
• The risks and responsibilities you need to be aware of
• Which lenders are more open to freehold flat mortgages

Understanding Flat Tenure in the UK

In the UK, flats usually fall into one of three main tenure categories:

• Leasehold – The most common form of ownership for flats. You own the flat for a set period (the lease term) but not the land or structure. The freeholder is responsible for building upkeep and communal areas.
• Share of Freehold – Flat owners collectively own the freehold (usually via a management company) while still holding long leases on their individual properties. This offers more control and is generally lender-friendly.
• Outright Freehold Flat – You own your flat outright with no lease attached. On the surface this sounds ideal, but in practice it creates complications for mortgage lenders.

When people talk about a “freehold flat mortgage,” they often mean outright freehold flats — not share of freehold. And it’s this distinction that’s critical.

Why Lenders Don’t Always Like Freehold Flats

Mortgage lenders are cautious with freehold flats because of management and responsibility issues. Without a lease or a management structure, it can be unclear:

• Who maintains the roof, structure, and communal areas
• Who pays for repairs or insurance
• How disputes between flat owners are resolved

For lenders, this creates uncertainty. They want to know the property will remain well maintained and retain its value, but with a freehold flat there are no clear legal agreements to ensure this. That’s why many lenders will simply decline applications.

The Risks of Owning a Freehold Flat

Before buying a freehold flat, it’s important to weigh up the potential challenges:

• Responsibility for maintenance – You and other freehold owners must organise and agree on repairs and upkeep.
• Disputes – Without leases or a management company, disagreements can be harder to resolve.
• Resale difficulties – Even if you’re a cash buyer, selling on to someone who needs a mortgage can be difficult if lenders are limited.
• Insurance – You’ll need to ensure adequate building insurance is in place and shared fairly.

Lender Policy on Freehold Flats

Most high-street lenders will not consider outright freehold flats. However, there are some smaller building societies and specialist lenders who take a more flexible approach, usually if:

The property is considered low-risk, well maintained, and not above commercial premises.

The flat is part of a converted house with only two flats (often called “Tyneside flats” in the North East).

There’s a legal agreement in place (e.g. a “Deed of Mutual Covenant”) clearly setting out responsibilities.

Lenders That Consider Freehold Flats

💡 Important: While these lenders do consider freehold flats, there are always caveats and conditions. Acceptance usually depends on factors like block size, maintenance agreements, and property type.

Let’s break them down in more detail 👇

What Deposit Is Needed for a Freehold Flat?

The deposit required depends on whether you’re buying to live in the property or to let it out:

• Residential Freehold Flat – A handful of mainstream lenders may consider deposits from as little as 5–10%, though in reality many will want 15% or more because of the additional risks. Smaller building societies may also require larger deposits depending on the property.
• Buy to Let Freehold Flat – Typically requires a minimum 25% deposit, with some lenders asking for more if the property is unusual, in a large block, or lacks clear maintenance agreements.

Can I Get a Freehold Flat at 95% LTV?

Yes — but only with very few lenders and usually on strict terms. Most lenders are more cautious with outright freehold flats, so higher deposits are more common.

Should You Buy a Freehold Flat?

Buying a freehold flat can be a good move if you go in with your eyes open:

• Lower purchase price – Because some buyers and lenders shy away, you may be able to negotiate a better deal.
• Value potential – In some cases, you can work with other owners to add leases later, which can increase value.
• Mortgageability matters – As long as the flat is mortgageable and the property is well run, it can still be a strong investment or home.

Are Mortgage Rates Higher for Freehold Flats?

No — there aren’t special products or inflated rates just because a property is a freehold flat. As long as the property meets a lender’s criteria and is considered mortgageable, you’ll have access to the same rates as any other borrower. The challenge is finding a lender willing to accept the tenure in the first place.

How Does Insurance Work for Freehold Flats?

Unlike leasehold flats, where the freeholder usually arranges a block insurance policy, with freehold flats the responsibility often falls to the owners. Lenders will want to see that:

• There is a valid buildings insurance policy covering the whole property.
• All flat owners are named or otherwise legally bound to contribute.
• Cover is adequate for rebuild value, not just market value.

Sometimes this is arranged through a Deed of Covenant or mutual agreement between owners. The key is showing the lender that insurance won’t lapse or fall into dispute.

Can You Get a Buy to Let Mortgage on a Freehold Flat?

Yes — several lenders will consider freehold flats for buy to let. The pool of lenders is smaller than for standard leasehold flats, and most will want a minimum 25% deposit. Criteria are often tighter, so using a broker who knows which lenders to approach is crucial.

Speak to the Experts in Flat Mortgages

At Strive Mortgages, we specialise in tricky cases like freehold flats. We know which lenders to approach, how to present your application, and how to secure the best possible deal.

👉 Explore more here: Mortgages for Flats

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