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Question: 5.7.1. Does the lender lend on flying freeholds?

Lender Answer
Accord Buy to Let No.
Accord Mortgages Ltd Yes, provided only part of the property is affected by a flying freehold and you confirm that the title to the property incorporates (or will incorporate prior to completion of Accord Mortgages' mortgage) satisfactory and enforceable rights of support, shelter and repair together with appropriate rights of entry.
Adam & Company Accepted, subject to our prior written approval. See 1.11. Indemnity insurance may be required.

Adam & Company International Accepted, subject to our prior written approval. See 1.11. Indemnity insurance may be required.

Ahli United Bank (UK) plc No
Aldermore Bank PLC Yes, providing the proportion of the security affected is no more than 25% and the requirements set out in paragraph 5.7.2 of Part 1 apply.
Allied Irish Bank (GB), a trading name of AIB Group (UK) Refer to AIB Group (UK) plc, Central Securities (GB)
Atom Bank plc Yes, providing the element of flying freehold does not exceed 15% and subject to confirmation that adequate rights of support and mutually enforceable repairing covenants exist.
Aviva Equity Release UK Ltd Yes - provided the flying freehold is no more than 25% of the total floor area of the property
Bank of Ireland (UK) plc Yes, where only part of the subject property is affected. There is no requirement to report these flying freeholds to us.
Bank of Ireland as Bank of Ireland Mortgages Yes, where only part of the subject property is affected. There is no requirement to report these flying freeholds to us.
Bank of Scotland Beginning A Yes, but only if paragraph 5.6.2 is complied with.
Bank of Scotland Beginning O Yes, but only if paragraph 5.6.2 is complied with.
Barclays Bank UK PLC Refer to Issuing Office
Barnsley Building Soc, a trading name Yorkshire Building Soc Yes, provided only part of the property is affected by a flying freehold and you confirm that the title to the property incorporates (or will
incorporate prior to completion of the Society’s mortgage) satisfactory and enforceable rights of support, shelter and repair together with
appropriate rights of entry.
Birmingham Midshires Yes, if only part of the title is a "flying" or "creeping" freehold.
Bluestone Mortgages Yes, provided the flying freehold is no more than 10% of the total floor area of the property.
Bradford & Bingley Plc Yes, provided not more than 25% of the floor area is affected
Britannia, a trading name of The Co-operative Bank plc Yes, provided extent of the security affected is no more than 15% of the property
Buckinghamshire Building Society Yes, subject to the approval of our valuer and the flying freehold not exceeding 25% of the floor area
Capital Home Loans Yes, if this does not appear in the Mortgage Valuation Report you should refer this to us.
Chelsea Building Society (a trading name of Yorkshire BS) Yes, provided only part of the property is affected by a flying freehold and you confirm that the title to the property incorporates (or will incorporate prior to completion of our mortgage) satisfactory and enforceable rights of support, shelter and repair together with appropriate rights of entry.
Clydesdale Bank plc Yes provided there is a deed of covenant or an indemnity policy in place to cover potential liability for repairs/renovations.The indemnity policy must incorporate:-Covering the Bank as mortgagee and any successors in title.Sum assured to be at the amount of the mortgage.
Policy to include an escalator clause increasing the sum assured by 5% each year.
Co-operative Bank plc Yes, provided extent of the security affected is no more than 15% of the property
Coutts Accepted, subject to our prior written approval. See 1.11. Indemnity insurance may be required.
Coutts Finance Co Accepted subject to our prior written approval. See 1.11. Indemnity insurance may be required.
Coventry Building Society Yes, subject to the area of flying freehold being no more than 25% of the floor area.
Cynergy Bank We will consider if part of the property comprises or is affected by a flying freehold.
Darlington Building Society No but refer to Customer Support Department, Principal Office if you feel the security is adequate.
DB UK Bank Ltd Yes, but this is dependent of the extent of the property affected
Dudley Building Society Yes, if no more than 25% of the property is affected and there are adequate cross covenanting existing and a deed of mutual enforceability of covenants placed with the title deeds.
Earl Shilton Building Society Refer to Mortgage Dept at Head Office - Earl Shilton 01455 844 422
Details of cross covernance and legal rights and obligations to be provided for consideration.
Ecology Building Society Yes
Family Building Soc (a trading name of National Counties BS) Yes, provided the requirements of para 5.7.2 of Part 1 of the UK Finance Lenders' Handbook are satisfied.
Fleet Mortgages Properties with an element of flying freehold are not generally acceptable. A property with an element of less than 10% may be considered on referral.
Foundation Home Loans Yes, if only part of the title is "flying" or "creeping" freehold, and you are satisfied that the arrangements made in respect of it render the title good and marketable. Indemnity insurance may be considered on a case by case basis.
Furness Building Society Yes if only part of the security is affacted and satisfactory legally defined rights of support exist.
GE Money Home Lending Ltd GE Money Home Lending has withdrawn from the UK mortgage market.
Godiva Mortgages Ltd Yes, subject to the area of flying freehold being no more than 25% of the floor area.
Habito Yes, subject to the area of flying freehold being no more than 20% of the floor area.
Halifax Yes, if only part of the title is a "flying" or "creeping" freehold.
Halifax Loans Ltd Yes, if only part of the title is a "flying" or "creeping" freehold.
Hampden & Co. plc Accepted, subject to prior written approval. See 1.11. Indemnity insurance may be required.
Handelsbanken Yes, subject to prior approval of the Branch office instructing you and only if part of the title is a flying freehold and the contents of paragraph 5.7.2 have all been complied with.
Harpenden Building Society Sometimes - depending on extent of property involved and advance to valuation ratio
Hinckley and Rugby Building Society Yes, subject to the flying freehold being no more than 25% of the floor area.
Hodge Equity Release Yes, provided the flying freehold is no more than 10% of the total floor area of the property, and the risk is covered by an acceptable indemnity insurance policy and the requirements of 5.7.2 are met
Hodge Life Yes, provided that the flying freehold is no more than 10% of the total floor area of the property, and the risk is covered by an acceptable indemnity insurance policy and the requirements of 5.7.2 are met.
Holmesdale Building Society no, except in exceptional circumstances.
HSBC UK Bank plc Yes, provided there are mutual rights of support, protection, repair and maintenance and entry for repair and maintenance and mutually enforceable covenants, usually including a Deed of Covenant, being entered into in identical form on each dealing with the Property between the existing/other flat owners and the incoming purchaser.

If a flying freehold is mentioned in the valuation report, the Bank requires you to check there are mutual rights of support and maintenance and mutually enforceable covenants and or if these are not in place to arrange appropriate indemnity insurance.

If the flying freehold is not mentioned within the valuation report this will also need to be referred back to the valuer.
Intelligent Finance Yes, if only part of the title is a "flying" or "creeping" freehold.
Investec Bank plc If any part of the property comprises a flying freehold we may accept the title as security provided: i) the property has all the necessary rights of support, protection and entry for repair; ii) the Property has a good and marketable title, and iii) unless you have in your possession a valuation detailing the extent of the flying freehold then before we can confirm that we will proceed, we will require a clear plan showing the extent of the flying freehold so that we can request our valuer's confirmation that the value and marketability of the property is not adversely affected.

Please contact the member of Banking Legal or PBLO notified to you in the Transaction Instructions to discuss the circumstances and to seek approval.
ITL Mortgages Yes - subject to the flying freehold being no more than 25% of the floor area
JPMorgan Chase Bank, N.A. No.
Kensington Mortgage Company Ltd Refer to Kensington
Kent Reliance (a trading name of OneSavings Bank plc) Yes where only part of the subject property is affected. The requirements in part 1 paragraphs 5.7.2 must be adhered
Keystone Property Finance A property with an element of less than 15% may be considered on referral subject to confirmation that there are adequate rights of shelter and support plus arrangements for maintenance and repair
Landbay Yes. Subject to prior approval by the New Business department and confirmation by the valuer within its report that the property provides adequate security.
Landmark Mortgages Limited Not normally acceptable. Small areas of less than 20% of total floor area may be considered subject to confirmation that adequate rights of support and mutually enforceable repairing covenants exist.
Refer to:
New Mortgage Completions
Landmark Mortgages
PO Box 656
Durham
DH1 9LY

Tel - 0330 159 7152
Leeds Building Society Yes, up to a maximum of 15% of the property.

If the flying freehold is over 15% please refer to the Mortgage Lending Department as per 1.11a.

If the Society proceeds where the property is subject to a flying freehold, you must ensure Part 1, paragraph 5.7.2 of the handbook is complied with.

If the Society proceeds where the property is subject to a flying freehold, you must ensure Part 1, paragraph 5.7.2 of the handbook is complied with.
Legal & General Home Finance Ltd Yes where the flying or creeping freehold is less than 15% of the overall floor space. You must check to ensure suitable rights of support, access and maintenance are in place. Where there is a flying or creeping freehold and this is not mentioned in the valuation report, you must refer it to us.
LendInvest Properties with an element of flying freehold are not generally acceptable. A property with an element of less than 15% may be considered on referral.
Lloyds Bank plc pre fixed 20/40 Yes, if only part of the title is a "flying" or "creeping" freehold.
Lloyds Bank plc pre fixed 50/30/77 Yes, if 5.6.2 is complied with.
Lloyds TSB Scotland plc Yes, if 5.6.2 is complied with
M&S Bank Yes, provided there are mutual rights of support, protection, repair and maintenance and entry for repair and maintenance and mutually enforceable covenants, usually including a Deed of Covenant, being entered into in identical form on each dealing with the property between the existing/other flat owners and the incoming purchaser.

If a flying freehold is mentioned in the valuation report, we require you to check there are mutual rights of support and maintenance and mutually enforceable covenants and if these are not in place to arrange appropriate indemnity insurance.

If the flying freehold is not mentioned within the valuation report this will also need to be referred back to the valuer.
Magellan Homeloans Yes, providing the proportion of the security affected is no more than 20% and the requirements set out in paragraph 5.7.2 of Part 1 apply. Indemnity insurance may also be required.
Manchester Building Society Yes, if only part of the title is a 'flying' freehold.
Market Harborough Building Society Please contact us if you have a flying freehold situation – see 1.7 for contact details.
Masthaven Bank Yes, provided the flying freehold is no more than 10% of the total floor area of the property.
Metro Bank plc Yes however the flying freehold must be less than 20% of the floor area and the surveyor states that the security is suitable in the valuation report.
Molo Finance Buy to Let Mortgages No.
Monmouthshire Building Society Yes but each case to be considered individually. Refer to Lending Operations Department
Mortgage Agency Services Yes, provided extent of the security affected is no more than 15% of the property
Mortgage Express Yes - provided not more than 25% of the floor area is affected
Mortgage Express No 2  
National Counties Building Society Yes, provided the requirements of para 5.7.2 of Part 1 of the UK Finance Lenders Handbook are satisfied.
National Westminster Bank plc Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
Nationwide Building Society Yes, where only part of the subject property is affected. There is no requirement to report these flying freeholds to us. No, where the whole of the subject property is affected (100%). We will not require site of the plan.
Nedbank Private Wealth Ltd You must refer to us
New Street Mortgages No, unless the flying freehold represents 10% or less of the total floor area
NRAM Ltd Not normally acceptable. Small areas of less than 20% of total floor area may be considered subject to confirmation that adequate rights of support and mutually enforceable repairing covenants exist. Refer to 1.11a
Paragon Buy to Let Mortgages No, but we may be prepared to lend if a small or immaterial part of the property comprises or is affected by a flying freehold such as an alleyway between two terraced properties, which may be common in some parts of England and Wales.
Paragon Residential Owner-Occupied Mortgages No, but we may be prepared to lend if a small area (ie not exceeding 10%) of the property comprises, or is affected by a flying freehold such as over an entry or alleyway between two terraced properties, which may be common in some parts of England and Wales.
Paratus AMC Ltd Yes, if only part of the title is "flying" or "creeping" freehold, and you are satisfied that the arrangements made in respect of it render the title good and marketable. Indemnity insurance may be considered on a case by case basis.
Parity Trust No
Pepper Money Flying freeholds will only be considered where up to 20% of the total property area is affected. This will be subject to conveyancer or solicitor confirmation that adequate rights of support and access to the property exist.
Pepper Money (PUK) Flying freeholds will only be considered where up to 20% of the total property area is affected. This will be subject to conveyancer or solicitor confirmation that adequate rights of support and access to the property exist.
Platform (a trading name of The Co-operative Bank p.l.c.) Yes, Provided extent of the security affected is no more than 15% of the property.
Precise Mortgages (Charter Court Financial Services Ltd) Yes - We can consider flying freeholds provided the percentage thereof does not exceed 10% of the total area. The valuer must comment and confirm total percentage.
Principality Building Society Yes, provided the flying freehold is no more than 25% of the total floor area of the property
Rooftop Mortgages Ltd No.
Saffron Building Society Yes - providing the valuer has noted it in the valuation report and subject to the requirements set out in paragraph 5.7.2 of Part 1 of the Handbook
Sainsbury's Bank A flying freehold will only be acceptable to us where less than 25% of the whole of the property being mortgaged is affected.
Santander UK plc Yes but we will not accept indemnity insurance if the requirements of 5.7.2 are not met.
Scottish Building Society No
Scottish Widows Bank Yes,if less than 25% of the whole and para 5.6.2 bullet one is complied with.
Secure Trust Bank PLC Yes, providing the proportion of the security affected is no more than 25% and the requirements set out in paragraph 5.7.2 of Part 1 apply.
Skipton Building Society Yes, subject to prior approval. If the Offer Conditions do not refer to a flying freehold please report to the Completions Team.
St James Place Bank Yes, if only part of the title is a "flying" or "creeping" freehold.
State Bank of India UK Yes, providing the area of the flying freehold is not more than 15% of the overall property.
Swansea Building Society No
Tesco Bank (a trading name of Tesco Personal Finance plc) A flying freehold will only be acceptable to us where less than 15% of the whole of the property being mortgaged is affected.
The Mortgage Business Yes, if only part of the title is a "flying" or "creeping" freehold.
The Mortgage Lender Limited Yes, subject to the area of flying freehold not exceeding;
10% of the floor area.(for residential (owner occupied) mortgages)
15% of the floor area. (for BTL mortgages)
The Mortgage Works Yes, where only part of the subject property is affected (there is no requirement to report these flying freehold to us).
No, not where the whole of the subject property is affected (100%). We will not require sight of the plan.

The Royal Bank of Scotland plc Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
The Royal Bank of Scotland plc Direct Line Mortgages Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
The Royal Bank of Scotland plc Direct Line One Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
The Royal Bank of Scotland plc First Active Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
The Royal Bank of Scotland plc Natwest one Account Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
The Royal Bank of Scotland plc One Account Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
The Royal Bank of Scotland plc Virgin One Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
The Tipton & Coseley Building Society Refer individual case to Mortgage Department,
Together Personal Finance Limited Yes.
Topaz Finance Ltd No. You may refer, however, if the Security is adequate and you are able to satisfy 5.5.2 and provide indemnity insurance.
TSB Bank plc Yes, if only part of the title is a “flying” or “creeping” freehold
Ulster Bank Ltd Yes. Where it is possible to enforce positive covenants (e.g. a written agreement is in place to ensure maintenance, repair and insurance of the building and common parts are shared equitably amongst all residents). The maximum Loan to Value is restricted to 90%.
Vida Homeloans Yes providing the proportion of the security affected is no more that 15% of the property. If any of the requirements in paragraph 5.7.2 of Part 1 are not satisfied, Vida Homeloans will not lend.
Virgin Money No. However, refer to:
Mortgage Processing
Operations
Virgin Money
Jubilee House
Gosforth
Newcastle upon Tyne
NE3 4PL

or DX 60350 Gosforth

Solicitors Helpline: 0845 604 4858

We may consider lending where the area is less than 20% of the total floor area, if it has adequate rights of support and mutually enforceable repairing covenants.
Whistletree (a trading name of TSB Bank plc) Not normally acceptable. Small areas of less than 20% of total floor area may be considered subject to confirmation that adequate rights of support and mutually enforceable repairing covenants exist. Refer to New Mortgage Completions, other details as 1.11a.
Yorkshire Bank Home Loans Ltd Yes,provided there is a deed of covenant or an indemnity policy in place to cover potential liability for repairs/renovations.The indemnity policy must incorporate:-Covering the Bank as mortgagee and any successors in title.Sum assured to be at the amount of the mortgage.
Policy to include an escalator clause increasing the sum assured by 5% each year.
Yorkshire Building Society Yes, provided only part of the property is affected by a flying freehold and you confirm that the title to the property incorporates (or will incorporate prior to completion of the Society's mortgage) satisfactory and enforceable rights of support, shelter and repair together with appropriate rights of entry.
Zephyr Mortgages Yes for Zephyr: Flying freehold may be considered where less than 10% of the property extends over another and the Valuer states that saleability is unaffected. If greater than 10% flying freehold the application should be declined (same rule applies to creeping freeholds)