At AF Credit, we specialise in helping buyers purchase properties that mainstream lenders struggle to finance — including flying freeholds, short leases, non-standard construction, structural issues, damp, fire damage and other mortgage-restricted properties.
Yes. Many lenders will lend on flying freehold properties. The key factors are the extent of the flying freehold, the adequacy of the legal rights within the title, and the surveyor's comments on marketability. Where a lender declines, bridging finance can complete the purchase while legal issues are resolved and the property refinanced.
What Is a Flying Freehold?
A flying freehold exists where part of a freehold property extends over or under land owned by another person. Common examples include:
- A room built above a shared alleyway or passageway
- A first-floor bedroom extending over a neighbour's property
- A basement extending beneath an adjoining building
- Properties built into hillsides where the structure overhangs lower ground
- Older terraced properties with overhanging sections
Flying freeholds are particularly common in Victorian and Edwardian properties, where buildings were often constructed right up to boundaries and passage rights were less formally documented.
Why Do Mortgage Lenders Care About Flying Freeholds?
Mortgage lenders are primarily concerned with their security. The key concern is that part of the property relies on another owner's land for support, access or maintenance. If the relevant legal rights are not adequately documented in the title — or if disputes arise between neighbouring owners — the property's value and saleability can be affected.
What Legal Rights Are Required?
The neighbouring property must continue to provide structural support to the flying freehold element. This right should be clearly documented in the title.
Access may be required to inspect, repair or maintain the affected area. Without documented access rights, essential maintenance can become a source of dispute.
The title should include mechanisms for carrying out and enforcing essential maintenance — including provisions for what happens if a neighbouring owner fails to maintain their part.
The solicitor's role is central to a flying freehold transaction. They will review the title documentation to confirm whether these rights are adequately protected and advise the lender accordingly.
What Percentage of the Property Can Be Affected?
This is one of the most important factors for lenders. Many become more cautious where a significant proportion of the property is a flying freehold. While criteria vary, lenders often prefer the flying freehold element to represent only a small percentage of the overall property floor area. The valuer will usually comment on whether the extent of the flying freehold affects marketability.
What Happens If a Survey Identifies a Flying Freehold?
One of the most common scenarios occurs when a buyer receives a valuation report identifying a flying freehold. The lender may then request additional legal investigations, confirmation of title rights, flying freehold indemnity insurance or further surveyor comments. This can delay the transaction and, in some cases, lead to a mortgage decline.
Is Flying Freehold Indemnity Insurance Enough?
Sometimes. Flying freehold indemnity insurance is commonly used where lenders identify legal risks and the issues are relatively minor. However, indemnity insurance does not resolve underlying title deficiencies — it simply protects against the risk of enforcement or dispute. Many lenders still require the solicitor to confirm that adequate legal rights exist within the title, even where insurance is in place.
Flying freehold indemnity insurance protects against the financial consequences of a legal dispute or enforcement action. It does not create rights of support, access or repair where they are missing. A lender's solicitor will assess whether the underlying title is adequate — insurance is typically supplementary, not a complete solution.
Does a Flying Freehold Affect Property Value?
Usually not significantly, where the legal rights are properly documented and the extent of the flying freehold is small. However, value can be impacted where mortgage availability is restricted, legal rights are defective, significant legal work is required or future saleability is affected. The surveyor's opinion is often crucial here.
What Happens If Your Mortgage Is Declined?
A mortgage decline does not mean the purchase cannot proceed. Many lenders have different policies regarding title complexities — what one declines, another may accept subject to appropriate legal confirmation. Where no mainstream lender will proceed, bridging finance can complete the purchase while the legal issues are worked through and the property refinanced.
How AF Credit Can Help
AF Credit specialises in financing properties that mainstream lenders struggle to accept. We regularly assist buyers purchasing flying freehold properties, title-defective properties and other mortgage-restricted assets. Where there is a clear strategy to resolve the legal issue and a realistic exit route, we can often provide bridging finance to facilitate the purchase.
Title information and solicitor comments on the flying freehold, survey reports, details of the legal issue and what is required to resolve it, and a clear exit strategy — typically refinancing onto a conventional mortgage once the legal position has been addressed.
Example
A buyer agrees to purchase a Victorian terraced house for £375,000. The lender's solicitor identifies a flying freehold affecting a first-floor bedroom built above a shared alleyway. The lender declines the mortgage due to concerns regarding documented support and access rights.
AF Credit provides bridging finance, allowing the purchase to complete while the solicitor works to resolve the title issues.
The solicitor subsequently obtains confirmation of the legal rights and flying freehold indemnity insurance. The property is refinanced onto a conventional mortgage — repaying the bridge and securing long-term finance.
Why Investors Buy Flying Freehold Properties
Flying freehold properties can attract fewer buyers because some purchasers become nervous when title complexities arise — even where the underlying issue is manageable. For experienced buyers with access to specialist finance and good legal support, this can create opportunities to purchase below market value and resolve the issue, capturing the discount as equity once the property becomes fully mortgageable.
Frequently Asked Questions
Can you get a mortgage on a flying freehold?
Yes. Many lenders will lend on flying freehold properties, subject to legal review and their own criteria. See our unmortgageable property guide for a broader overview of mortgage-restricted property types.
What is a flying freehold?
A flying freehold exists where part of a freehold property extends over or under land owned by another person — such as a room above a shared alleyway or a first-floor bedroom overhanging a neighbour's property.
Does a flying freehold make a property unmortgageable?
No, but it can limit lender choice. Many lenders will proceed where the legal rights are properly documented. Where lenders decline, bridging finance can often provide a route forward.
Is flying freehold indemnity insurance enough?
Sometimes — for minor issues where the underlying legal position is sound. For more significant title deficiencies, lenders typically require the solicitor to confirm adequate rights exist, and insurance alone may not be sufficient.
Can I buy a flying freehold property at auction?
Yes. Bridging finance is commonly used where title issues need resolving before refinancing and a conventional mortgage cannot be arranged within the 28-day auction deadline.
Does AF Credit lend on flying freehold properties?
Yes. AF Credit specialises in financing properties that fall outside mainstream lending criteria — including flying freeholds, missing Building Regulations, short leases, non-standard construction and other title or mortgage restrictions.
If your mortgage has been declined because of a flying freehold, or you are considering purchasing a property affected by flying freehold issues, AF Credit may be able to help. Where there is a clear strategy to resolve the legal issues and refinance, we can often provide bridging finance to complete the purchase and unlock the property's value.
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