What is a flying freehold and how does it affect getting a mortgage?

Full answer

Flying freeholds are a quirk of English and Welsh property law (Scotland has different tenure rules), most commonly found in older converted properties, terraced houses, or unusual architectural layouts where part of a freehold property is not supported directly by its own foundations at ground level. **Typical example** A classic case is a room on the first floor of a terraced house that extends over a shared passageway or a neighbour's garage below -- the room is part of your freehold property, but the structure beneath it belongs to, and is the responsibility of, your neighbour. Because freehold ownership does not normally involve the mutual obligations that leasehold arrangements do (like shared repair covenants), there is no automatic legal mechanism forcing your neighbour to maintain the structure supporting your room, or forcing you to maintain a structure supporting theirs. **Why lenders are cautious** Mortgage lenders worry about flying freeholds because if the supporting structure beneath the overhanging part fails or needs repair, there may be no clear legal right or obligation for the relevant owner to fix it, potentially leaving part of the mortgaged property structurally unsupported with no straightforward remedy. Most mainstream lenders will only lend where the flying freehold accounts for a small percentage of the total property (often capped around 10-15%, though this varies significantly by lender), and some will decline flying freehold properties entirely. **Legal protections that can help** A solicitor can check whether mutual enforceable covenants exist (or can be created) between the affected neighbours, requiring each party to maintain their respective supporting structures -- and can advise on obtaining indemnity insurance to protect against the specific risk of unenforceable repair obligations, which can sometimes satisfy a cautious lender's concerns. **Impact on resale value** Beyond mortgage availability, flying freeholds can slightly depress resale value and narrow the pool of potential buyers, since some buyers (and their lenders) will be put off by the added legal complexity, even where the practical risk of a problem ever materialising is low. **How to find out if a property has one** Flying freeholds are usually identified during conveyancing, when the solicitor reviews the title plan and any relevant covenants -- if you are buying an older converted property, a terraced house, or anything with an unusual layout (rooms over passageways, shared structures), specifically ask your solicitor to check for this issue early in the process, ideally before you are financially committed via a mortgage application or survey costs. **Practical tip** If a flying freehold is identified, get advice on lender appetite BEFORE proceeding too far with a mortgage application, since a decline late in the process (after paying for a survey and searches) can be costly and stressful -- a specialist mortgage broker can identify lenders comfortable with flying freeholds more efficiently than approaching mainstream lenders directly.

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