Mortgage on a Property with a Flying Freehold

A mortgage on a property with a flying freehold is possible in many cases, but it often involves extra legal checks and a narrower choice of lenders. Flying freeholds are not uncommon in older buildings and certain property layouts, yet they are still treated as higher risk from a lending perspective.

This guide explains what a flying freehold is, why lenders are cautious, and what usually determines whether a mortgage can proceed.

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What is a flying freehold?

Short answer: part of one freehold property extends over or under another.

Expanded explanation:
A flying freehold exists where a section of a property is not supported by land owned within the same freehold title. Common examples include:

• A room built over a neighbour’s passageway
• A bedroom extending over another property
• A basement extending beneath a neighbouring building

Ownership is freehold, but structural reliance exists on another property.

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Why do lenders see flying freeholds as a risk?

Short answer: because of access, maintenance, and enforcement concerns.

Expanded explanation:
Lenders worry about whether:

• The property has legal rights of support
• Access exists to repair or maintain the structure
• Disputes with neighbours could affect value or saleability

If the lender cannot be confident that the property can be maintained and sold easily, they may restrict lending.

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Do all lenders decline flying freeholds?

No.

Short answer: many lenders will lend, but with conditions.

Expanded explanation:
Some mainstream lenders are comfortable with flying freeholds where:

• The affected area is a small proportion of the property
• Adequate rights are documented
• Legal protections are in place

Other lenders decline outright, which is why lender selection is important.

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How much of the property can be flying?

This is a key consideration.

Lenders often look at:

• The percentage of the property affected
• Whether it is a core living area
• The impact on structural integrity

As a general guide, many lenders prefer the flying element to be a relatively small part of the overall property rather than a substantial section.

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What legal rights do lenders expect?

Short answer: clear, enforceable rights.

Expanded explanation:
Lenders usually want confirmation of:

• Rights of support
• Rights of access for maintenance
• Rights to enter neighbouring land if repairs are needed

If these rights are missing or unclear, the lender may require additional protection before proceeding.

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Is indemnity insurance required?

Often, yes.

Indemnity insurance may be used where:

• Legal rights are not fully documented
• Risk of dispute exists but is considered low
• A deed of variation is not practical

The policy protects the lender (and often the borrower) against losses arising from enforcement issues.

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Can deeds be amended instead of insurance?

Sometimes.

A deed of variation or deed of grant may:

• Add missing rights
• Clarify maintenance responsibilities
• Reduce lender risk

However, this requires cooperation from neighbouring owners and can delay transactions, so indemnity insurance is more common.

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Does a flying freehold affect valuation?

Short answer: it can.

Expanded explanation:
Valuers may:

• Apply more conservative valuations
• Flag saleability concerns
• Recommend lender conditions

In some cases, value is unaffected. In others, reduced lender appetite can indirectly influence valuation.

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Is buying harder than remortgaging?

Often, yes.

Short answer: remortgaging can be easier.

Expanded explanation:
Existing lenders may already be comfortable with the risk and may not require a fresh valuation. New lenders assess the property from scratch, which can lead to stricter scrutiny.

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Are specialist lenders an option?

Yes.

Specialist lenders may:

• Accept higher proportions of flying freehold
• Be more flexible on legal structure
• Require higher deposits or rates

These lenders are not suitable for everyone but can provide solutions where mainstream lenders will not proceed.

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What documents do lenders and solicitors check?

Expect review of:

• Title deeds
• Plans showing the flying element
• Legal rights and covenants
• Indemnity insurance (if used)

Clear solicitor reporting is critical to avoid delays or declines.

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Key points to understand before applying

• Flying freeholds are not uncommon
• Lender acceptance varies widely
• Legal rights are crucial
• Insurance is often required
• Buying is usually harder than remortgaging

Understanding the structure early can help avoid surprises later in the mortgage process.

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This guide provides general information only. Personalised mortgage advice should always come from a regulated mortgage adviser.