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Why do mortgage providers not like freehold flats?

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I’ve found a flat that is on its own, on one floor, with no property or other flat attached to it. 

Its a freehold flat which I initially thought was an added bonus as I could make changes without having to get permission from the owner of the freehold, if it had been leasehold.

I was curious as to why it had been on the market for so long as it’s a great price and now I know why - having spoken with my mortgage broker and doing some googling - turns out mortgage providers do not like lending on freehold flats. Why is this? I cannot see the logic? Particularly if the flat is on its own...

If anyone has come up against this before and has a good work around or any advice it would be greatly appreciated as I have my heart set on this flat!


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Mortgage Lenders do not like Freehold flats, as their is no clear way to sort shared issues. Perhaps the roof needs sorting, or a structural issue with the wall. A freehold flat would require consent of all to come together and fix it. Whereas leasehold has it written in contract that all should participate, or what percentage they should participate. 

There are lenders that do entertain mortgages of Freehold Flats, Bespoke Finance has done a few in its time. Its the way many units were set up. If your broker is coming up blank, then would be happy to help with the contact details in my signature.

Though if you have a freehold flat, on one floor with no property or other flat attached to it. You have a freehold bungalow? no?

:wub: Get Mortgage Advice from my Team at Bespoke Finance on 08009202001 or email hello@bespokefinance.info 
Please don't take my messages on Property Hub as Personal Financial Advice, just a rambling guy passing time on a Coffee Break.

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