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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
At Strive, we specialise in mortgages for ex-local authority properties — whether you’re buying your home directly from the council through Right to Buy, or purchasing an ex-council house or flat privately.
These homes are often solidly built, well-spaced, and great value for money — making them a smart choice for many buyers.
That said, ex-council and ex-local authority properties come with their own quirks — from construction types and lease terms to lender restrictions that vary depending on whether it’s a house, flat, or maisonette.
The good news? We know exactly how to navigate them and find the lenders who understand their true value.
Mortgages on Ex-Local Authority Properties
Whether you’re buying your home privately or through the Right to Buy scheme, the process is similar in many ways — but there are a few key differences worth knowing.
Right to Buy Purchases
With Right to Buy, the council offers a discount on the market value of the property, based on how long you’ve lived there.
This discount can count towards your deposit, meaning you may not need to put down much (or any) of your own savings.
Private Purchases
If you’re buying an ex-council property privately, it’s treated as a standard purchase — you’ll just need to meet the usual lending criteria, plus a few additional checks specific to the property type and construction.
Outstanding service and clear communication are at the core of what we do. But don’t just take our word for it—read firsthand experiences from our clients and discover why they rate us a 5-star mortgage broker.
Mortgages on Ex-Council Flats
There are already hundreds of rules that apply to flats — things like minimum size, number of storeys, and lease length.
With ex-council flats, the same rules apply… just with a few extra quirks of their own.
High-Rise and Storey Limits
Some lenders restrict how many storeys an ex-local authority block can have.
For example, certain lenders won’t lend on flats above the third or fourth floor, while others have higher — or even no — limits. It really depends on the lender’s appetite and the individual block.
Lenders – Maximum Storeys Accepted on Ex-Local Authority Flats
| Maximum Storeys Accepted | Lenders |
|---|---|
| No Maximum | Foundation Home Loans, Together, Skipton Building Society, Kensington Mortgages, Chorley Building Society, AIB for Intermediaries, NatWest, Norton Home Loans, Monmouthshire Building Society, United Trust Bank, Vida Homeloans, West One Loans, HSBC, Santander, LendInvest, Barclays, Dudley Building Society, Accord Mortgages, Halifax, Saffron for Intermediaries, Bluestone Mortgages |
| 20 Storeys | Kent Reliance, Precise Mortgages |
| 15 Storeys | The Co-operative (Intermediaries) |
| 10 Storeys | Gen H, Suffolk Building Society, Principality Building Society, Aldermore, The Mortgage Lender |
| 7 Storeys | Virgin Money, Tandem Bank, Clydesdale Bank |
| 6 Storeys | Central Trust Ltd, TSB, Mpowered Mortgages, Cumberland Building Society, Metro Bank, Teachers Building Society, Tipton Building Society, Bath Building Society, Livemore Capital, Earl Shilton Building Society |
| 5 Storeys | Scottish Building Society, West Brom Building Society, Newcastle for Intermediaries, Perenna, Coventry Building Society, Nationwide Building Society |
| 4 Storeys | Cambridge Building Society, Ecology Building Society, Pepper Money, Gatehouse Bank, Buckinghamshire Building Society, Bank of Ireland, Atom Bank, Market Harborough Building Society, Bespoke Bank of Ireland, Harpenden Building Society, Melton Building Society, Leeds Building Society, Hodge |
Private Ownership Percentage
Many lenders only consider ex-council flats if at least 50% of the block is privately owned.
This ensures the property is well maintained and that service charges are shared fairly among residents.
👉 See our Lender Ownership Table to find out which lenders accept lower private ownership levels.
Build Type
Construction matters — a lot. Some lenders avoid non-standard builds, such as:
- Concrete panel
- Steel-framed
- Deck-access flats (where you reach your front door via an open walkway)
Others are more flexible. It’s all about matching your property to the right lender who understands its true value.
👉 Read our full guide to Non-Standard Construction Mortgages.
Deposit Requirements
Lenders already apply stricter rules to flats than houses, and ex-local authority properties are no exception.
While some lenders won’t lend at all, most do — but may ask for a larger deposit, typically 15–25%.
That said, it’s still possible to buy with as little as 5%, and in some cases, even less.
Aside from that, ex-council flats are assessed much like any other flat — lenders still look at factors such as:
- Property size
- Lease length
- Service charges
👉 See our full guide to Mortgages for Flats.
Mortgages on Ex-Council Houses
Ex-local authority houses tend to be more straightforward than flats.
There are fewer restrictions to worry about, though construction type still matters — for example:
- Pre-fabricated homes
- Timber-framed homes
- Steel-framed homes
These may need specialist lenders who understand non-standard builds.
👉 Learn more about Non-Standard Construction Mortgages.
Deposit requirements are usually the same as for standard houses — as low as 5%, unless the property’s construction requires more.
Buying Ex-Local Authority in London
While lenders can be stricter about ex-council flats elsewhere, there’s often more flexibility in London.
Many understand that ex-local authority properties can sit in prime postcodes — and in some boroughs, former council flats can be worth seven figures.
That gives lenders confidence in both value and resale potential.
What Deposit Do You Need?
For most buyers, it’s the same as any other purchase — as low as 5%, depending on the lender and property type.
Some construction types may require more, but there’s no fixed rule.
What Are the Rates Like?
Good news — rates and mortgage products are the same as for any other property.
The differences come down to lender criteria, not pricing.
Right to Buy Mortgages
The Right to Buy scheme is a fantastic opportunity if you’re a council tenant looking to purchase your home.
You’ll receive a discount based on how long you’ve lived there, and this discount can be used as all or part of your deposit.
Not every lender supports Right to Buy, but plenty do — and we know who they are.
👉 Read our full Right to Buy Mortgage Guide.
How Strive Can Help
At Strive, we’re specialists in ex-local authority mortgages — it’s what we do, day in and day out.
We know the quirks, the lenders, and the routes that make all the difference.
There might be a few extra hurdles, but we’ll make the process as smooth and stress-free as possible.
Whether you’re buying through Right to Buy or purchasing an ex-council flat privately, we’ll help you find the best deal and navigate lender criteria with confidence.
FAQs
What deposit do I need for an ex-council flat?
Usually between 5% and 25%, depending on the lender, property type, and block.
Can I use my Right to Buy discount as my deposit?
Yes — in many cases, the Right to Buy discount covers all or part of your deposit, meaning you may not need to put down any cash at all.
Jamie Elvin
Jamie is an expert in all things mortgages, and our most experienced broker. Connect with Jamie and get started to see how Strive Mortgages can help you.
