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Answers for England and Wales

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Question: 5.8.5. Does the lender accept security which comprises one of two leasehold flats in a building where the borrower also owns the freehold reversion of the other flat and the other leaseholder owns the freehold reversion in the borrower's flat? If so, are there any specific requirements?

Lender Answer
Accord Buy to Let No, so cross leasehold arrangements such as, for example, Tyneside flats are not acceptable.
Accord Mortgages Ltd Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Adam & Company Yes
Adam & Company International Yes
Ahli United Bank (UK) plc Please refer to New Business/Underwriting - Residential Mortgage Department
Aldermore Bank PLC Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Allied Irish Bank (GB), a trading name of AIB Group (UK) Refer to Legal & Central Securities, GB
Atom Bank plc Yes, we do accept this type of security. We require a charge over both the freehold reversion and leasehold titles owned by the borrower.
Aviva Equity Release UK Ltd Yes.
Bank of Ireland (UK) plc Yes to bullet point 1. For bullet point 2, we require a first charge on both the leasehold and freehold interests. The lease(s) must comply with the requirements set out in 5.8.4 of Part 1.
Bank of Ireland as Bank of Ireland Mortgages Yes to bullet point 1. For bullet point 2, we require a first charge on both the leasehold and freehold interests. The lease(s) must comply with the requirements set out in 5.8.4 of Part 1.
Bank of Scotland Beginning A Under bullet 1 clause 5.7.5 - Yes, we require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.
Under bullet 2 clause 5.7.5 - Yes, we require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower. We also require a mortgage of the borrower's freehold interest in the other flat occupied by the other flat owner, subject to the other flat owener's lease.
Bank of Scotland Beginning O Yes
Barclays Bank UK PLC Yes, we require a first charge over the freehold and leasehold titles, as appropriate
Barnsley Building Soc, a trading name Yorkshire Building Soc Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Birmingham Midshires Under bullet 1 clause 5.7.5 - Yes, provided that the lease provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease.
Under bullet 2 clause 5.7.5 - Yes. We require a mortgage of the customer(s) leasehold interest in the flat occupied by the customer(s). We also require a mortgage of the customer(s) freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
Bluestone Mortgages No.
Bradford & Bingley Plc Yes
Britannia, a trading name of The Co-operative Bank plc Yes
Buckinghamshire Building Society Yes
Capital Home Loans No
Chelsea Building Society (a trading name of Yorkshire BS) Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Clydesdale Bank plc Yes.
Co-operative Bank plc Yes.
Coutts Yes
Coutts Finance Co Yes
Coventry Building Society Yes, on condition the mortgage is secured against both the leasehold interest in the security and the freehold interest in the other flat.
Cynergy Bank We will consider. Please contact us for our requirements.
Darlington Building Society No
DB UK Bank Ltd Please refer each individual case to us at:
db mortgages
PO Box 890
Newport
NP20 9LZ
Tel: 0845 650 6281
DX Address - not available
Dudley Building Society Yes See 5.13 for our requirements for leasehold securities generally. We require the borrower's leasehold interest in the flat they occupy to be charged and we also require a charge over the borrower's freehold interest in the other flat subject to the lease in favour of its occupier.
Earl Shilton Building Society Refer to Mortgage Dept at Head Office - Earl Shilton 01455 844 422
Ecology Building Society Yes
Family Building Soc (a trading name of National Counties BS) 5.8.5 bullet 1 - Yes
5.8.5 bullet 2 - Yes, providing our security comprises both the leasehold interest and the freehold reversion
Fleet Mortgages Yes, in certain circumstances. However, the full details must be referred to us before completion.
Foundation Home Loans Yes, providing the lease provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease. We require a mortgage of the Customer(s) leasehold interest in the flat occupied or to be occupied by the Customer(s) or to be let by the Customer under an AST. We also require a mortgage of the Customer(s) freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease. We will not accept this arrangement if the freehold of the other flat cannot be included within the security. 'Tyneside' or similar criss-cross leases are acceptable so long as arrangements have been set up correctly.
Furness Building Society Yes, on condition the mortgage is secured against both the leasehold interest in the security and the freehold interest in the other flat.
GE Money Home Lending Ltd GE Money Home Lending has withdrawn from the UK mortgage market.
Godiva Mortgages Ltd Yes, on condition the mortgage is secured against both the leasehold interest in the security and the freehold interest in
the other flat.
Habito Yes, we require a first charge over the freehold and leasehold titles, as appropriate
Halifax Bullet 1 clause 5.7.5 - Yes. We require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.
Bullet 2 clause 5.7.5 - Yes. We require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower. We also require a mortgage of the borrower's freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
Halifax Loans Ltd Under bullet 1 clause 5.7.5 - Yes. We require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.

Under bullet 1 clause 5.7.5 - Yes. We require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower. We also require a mortgage of the borrower's freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
Hampden & Co. plc Yes
Handelsbanken Yes, we require a first charge over the freehold and leasehold titles, as appropriate.
Harpenden Building Society Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Hinckley and Rugby Building Society No.
Hodge Equity Release Bullet 1: Yes provided that the Lease provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease or the unexpired term of the Lease is at least 90 years plus the term of the mortgage.

If the unexpired Lease term is less than 90 years plus the term of the mortgage, the Society will require the lessee to either extend the Lease term in order to satisfy its unexpired term requirement as above or alternatively the lessee may vary the Lease so it provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease.

In addition if there are more than 2 flats in the block we will require a management company to be in place. See 5.14 for our requirements for leasehold securities generally.

Bullet 2; Yes; See 5.14 for our requirements for leasehold securities generally. We require the borrower's leasehold interest in the flat they occupy to be charged and we also require a charge over the borrower's freehold interest in the other flat subject to the lease in favour of its occupier.
Hodge Life Bullet 1: Yes provided that the Lease provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease or the unexpired term of the Lease is at least 90 years plus the term of the mortgage.

If the unexpired Lease term is less than 90 years plus the term of the mortgage, the Society will require the lessee to either extend the Lease term in order to satisfy its unexpired term requirement as above or alternatively the lessee may vary the Lease so it provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease.

In addition if there are more than 2 flats in the block we will require a management company to be in place. See 5.14 for our requirements for leasehold securities generally.

Bullet 2; Yes; See 5.14 for our requirements for leasehold securities generally. We require the borrower's leasehold interest in the flat they occupy to be charged and we also require a charge over the borrower's freehold interest in the other flat subject to the lease in favour of its occupier.
Holmesdale Building Society See above.
HSBC UK Bank plc Yes, we do accept this type of security. We require a charge over both the freehold reversion and leasehold titles owned by the depositor
Intelligent Finance Under bullet 1 clause 5.7.5 - Yes. We require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.
Under bullet 2 clause 5.7.5 - Yes. We require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower. We also require a mortgage of the borrower's freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
Investec Bank plc Each case will be assessed on its merits and will depend on the unexpired term of the lease - 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, on condition the mortgage is secured against both the leasehold interest in the security and the freehold interest in the other flat.
JPMorgan Chase Bank, N.A. No.
Kensington Mortgage Company Ltd Yes, we must have a mortgage over the leasehold interest of our security. We do not require a mortgage over the borrower's share of freehold
Kent Reliance (a trading name of OneSavings Bank plc) Yes - We require the borrowers leasehold interest in the flat they occupy to be charged and we also require a charge over the borrowers freehold interest in the other flat subject to the lease in favour of its occupier - see 5.14 for our requirements for leasehold securities generally
Keystone Property Finance Yes, in certain circumstances. However, full details must be referred to us before completion
Landbay No.
Landmark Mortgages Limited Yes, provided that both interests owned by the borrower are charged to us.
Leeds Building Society Bullet Point 1 of CML Handbook Part 1: Yes. We require a mortgage in respect of the borrower’s leasehold interest in the flat owned but do not require a mortgage of the borrower’s share of the freehold.
Bullet Point 2 of CML Handbook Part 1: We require a mortgage in respect of the borrower’s leasehold interest in the flat owned and of the borrower’s freehold interest in the other.
Legal & General Home Finance Ltd Yes. We require our security to be over the leasehold flat to be occupied by the borrower and the freehold interest in the other flat.
LendInvest Yes, in certain circumstances. However, the full details must be referred to us before completion.
Lloyds Bank plc pre fixed 20/40 Under 5.7.5 bullet 1 - Yes. We require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.
Under 5.7.5 bullet 2 - Yes. We require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower and of the borrower's freehold interest in the other flat.
Lloyds Bank plc pre fixed 50/30/77 -Yes. We require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.
-Yes. We require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower and of the borrower's freehold interest in the other flat.
Lloyds TSB Scotland plc Yes
M&S Bank Yes, we do accept this type of security. We require a charge over both the freehold reversion and leasehold titles owned by the borrower
Magellan Homeloans Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Manchester Building Society Yes, provided the requirements of the Handbook are complied with.
Market Harborough Building Society No
Masthaven Bank No.
Metro Bank plc No.
Molo Finance Buy to Let Mortgages No, so cross leasehold arrangements such as, for example, Tyneside flats are not acceptable.
Monmouthshire Building Society Yes. We require a mortgage of the Borrower's leasehold interest in the flat occupied by the Borrower. We also require a mortgage of the Borrower's freehold interest in the other flat occupied by the other flat owner subject to the other flat owner's lease
Mortgage Agency Services Yes, for Tyneside Leases
Mortgage Express Yes
Mortgage Express No 2  
National Counties Building Society 5.8.5 bullet 1 - Yes
5.8.5 bullet 2 - Yes, providing our security comprises both the leasehold interest and the freehold reversion
National Westminster Bank plc Yes.
Nationwide Building Society Yes to bullet 1 clause 5.8.5 - see 5.14 for our requirements for leasehold securities generally
Yes to bullet 2 clause 5.8.5 Yes We require the borrowers leasehold interest in the flat they occupy to be charged and we also require a charge over the borrowers freehold interest in the other flat subject to the lease in favour of its occupier.
Nedbank Private Wealth Ltd You must refer to us.
New Street Mortgages Yes, we must have a mortgage over the leasehold interest of our security. We do not require a mortgage over the borrower's share of freehold
NRAM Ltd Yes, provided that both interests owned by the borrower are charged to NRAM Ltd.
Paragon Buy to Let Mortgages Yes, subject to the leasehold and freehold interests owned by the borrower being charged to us. You must also ensure that the criss-cross Tyneside leasehold arrangements have been set up correctly and the correct interests in land are owned by the borrower and charged to us to ensure that our title is good and marketable.
Paragon Residential Owner-Occupied Mortgages Yes, subject to the leasehold and freehold interests owned by the Borrower being charged to us. You must ensure that the criss-cross Tyneside Leasehold arrangements have been set up correctly and the correct interests in land are owned by the Borrower and charged to us to ensure that our title is good and marketable.
Paratus AMC Ltd Yes, providing the lease provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease. We require a mortgage of the Customer(s) leasehold interest in the flat occupied or to be occupied by the Customer(s) or to be let by the Customer under an AST. We also require a mortgage of the Customer(s) freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease. We will not accept this arrangement if the freehold of the other flat cannot be included within the security. 'Tyneside' or similar criss-cross leases are acceptable so long as arrangements have been set up correctly.
Parity Trust Refer to 1.7
Pepper Money Under 5.8.5, bullet one - yes, but we will require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower and a suitable form of trust deed must be entered into on or prior to completion which contains provisions for the appropriate legal and beneficial interests in the freehold to be transferred simultaneously with the leasehold interest if a mortgagee exercises its power of sale. Under 5.8.5, bullet two -yes but we will require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower and we will also require a mortgage of the borrower's freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
Pepper Money (PUK) Under 5.8.5, bullet one - yes, but we will require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower and a suitable form of trust deed must be entered into on or prior to completion which contains provisions for the appropriate legal and beneficial interests in the freehold to be transferred simultaneously with the leasehold interest if a mortgagee exercises its power of sale. Under 5.8.5, bullet two -yes but we will require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower and we will also require a mortgage of the borrower's freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
Platform (a trading name of The Co-operative Bank p.l.c.) Yes, for Tyneside Leases.
Precise Mortgages (Charter Court Financial Services Ltd) Yes - We require a mortgage of the customer(s) leasehold interest in the flat occupied by the customer(s). We also require a mortgage of the customer(s) freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
Principality Building Society Bullet 1: Yes provided that the Lease provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease or the unexpired term of the Lease is at least 85 years plus the term of the mortgage.

If the unexpired Lease term is less than 85 years plus the term of the mortgage, the Society will require the lessee to either extend the Lease term in order to satisfy its unexpired term requirement as above or alternatively the lessee may vary the Lease so it provides for the compulsory transfer of the freehold share simultaneously with the sale of the lease.

In addition if there are more than 2 flats in the block we will require a management company to be in place. See 5.14 for our requirements for leasehold securities generally.

Bullet 2; Yes; See 5.14 for our requirements for leasehold securities generally. We require the borrower's leasehold interest in the flat they occupy to be charged and we also require a charge over the borrower's freehold interest in the other flat subject to the lease in favour of its occupier.
Rooftop Mortgages Ltd No.
Saffron Building Society No, we do not lend in these circumstances.
Sainsbury's Bank No.
Santander UK plc Yes - where our terms and conditions agree the property can be let from completion. The position will not be acceptable if the borrower owns the other flat.
Scottish Building Society No
Scottish Widows Bank Yes.
Secure Trust Bank PLC Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Skipton Building Society Yes, provided that a first legal charge in our favour is also taken over the freehold interest of the other unit/flat in the building
St James Place Bank 5.7.5 bullet one and two - Yes, we require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.
Bullet two under 5.7.5 - Yes, we require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower. We also require a mortgage of the borrower's freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
State Bank of India UK Under 5.8.5 bullet 1 - Yes. We require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.

Under 5.8.5 bullet 2 - Yes. We require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower and of the borrower's freehold interest in the other flat.
Swansea Building Society No
Tesco Bank (a trading name of Tesco Personal Finance plc) Bullet clause 1 at 5.8.5 – We will require a mortgage of the leasehold interest in the borrower’s flat. We will not require a mortgage over the borrower’s share in the freehold.
Bullet clause 2 at 5.8.5 – We will require a mortgage over both the leasehold interest in the flat occupied by the borrower and the freehold interest in the other flat (subject to the lease in favour of the occupier of the latter flat).
The Mortgage Business Under bullet 1 clause 5.7.5 - Yes. We require a mortgage of the leasehold interest in the flat owned by the borrower. We do not require a mortgage of the borrower's share of the freehold.
Under bullet 2 clause 5.7.5 - Yes. We require a mortgage of the borrower's leasehold interest in the flat occupied by the borrower. We also require a mortgage of the borrower's freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner's lease.
The Mortgage Lender Limited No
The Mortgage Works Yes, we require the borrowers leasehold interest in their flat to be charged and we also require a charge over the borrowers freehold interest in the other flat subject to the leasehold interest
The Royal Bank of Scotland plc Yes.
The Royal Bank of Scotland plc Direct Line Mortgages Yes.
The Royal Bank of Scotland plc Direct Line One Yes.
The Royal Bank of Scotland plc First Active Yes.
The Royal Bank of Scotland plc Natwest one Account Yes.
The Royal Bank of Scotland plc One Account Yes.
The Royal Bank of Scotland plc Virgin One Yes.
The Tipton & Coseley Building Society Yes.
Together Personal Finance Limited Yes.
Topaz Finance Ltd No.
TSB Bank plc Yes. We require a mortgage of the borrower’s leasehold interest in the flat occupied by the borrower. We also require a mortgage of the borrower’s freehold interest in the other flat occupied by the other flat owner, subject to the other flat owner’s lease
Ulster Bank Ltd Yes.
Vida Homeloans Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Virgin Money Yes, so long as both interests owned/to be owned by the borrower are charged to us.
Whistletree (a trading name of TSB Bank plc) Yes, provided that both interests owned by the borrower are charged to Whistletree
Yorkshire Bank Home Loans Ltd Yes.
Yorkshire Building Society Yes, we require our security to include the freehold reversion to the other flat as well as the leasehold flat to be occupied by the borrower.
Zephyr Mortgages No, Zephyr will not lend in this scenario.