Flying freeholds occur when part of your property sits above a neighbour’s land or building. Creeping freeholds are the opposite, extending underneath.
Most UK mortgage lenders will consider these properties, though some have restrictions on the percentage of floor area affected. Working with a broker who knows the market helps you find the right lender.
You’ve found a property you love. The location is right, the rooms are perfect, and you can already picture yourself living there.
Then your solicitor mentions something called a flying freehold. Or perhaps it’s a creeping freehold.
Either way, you’re told that getting a mortgage is now much more difficult.
These terms sound technical, and the uncertainty can be unsettling. You’ve probably heard that some lenders are reluctant to offer mortgages on these types of properties. The good news is that flying and creeping freeholds are more common than most people realise, particularly in older UK properties. With the right advice, they’re perfectly manageable.
This guide explains what these arrangements mean, how they affect your mortgage options, and what steps you should take.
What Is a Flying Freehold?
A flying freehold happens when part of your freehold property extends over or hangs above someone else’s property. You own that overhanging section, but you don’t own the land or building directly beneath it.
The most common examples include:
- a bedroom that sits above a neighbour’s garage
- a room extending over a shared passageway between terraced houses
- or a balcony that hangs over a neighbouring garden
You’ll find these arrangements most often in older Victorian and Georgian properties, converted buildings, and tightly packed terraced streets where properties were built close together over centuries.
Many homeowners live with flying freeholds without ever experiencing problems. In fact, some people don’t realise they have one until they come to sell or remortgage. The arrangement itself isn’t unusual.
It’s simply a quirk of how older properties were built.
What Is a Creeping Freehold?
If a flying freehold is about what’s above, a creeping freehold is about what’s below.
It occurs when part of your property extends underneath a neighbouring property at ground level.
The classic example is a cellar or basement that runs beneath your neighbour’s property. You own that underground space, but the land directly above it belongs to someone else. Any work you need to do in that cellar could affect your neighbour’s property, and you might need their permission to carry out repairs.
Mortgage lenders and solicitors treat creeping freeholds in exactly the same way as flying freeholds.
The same legal considerations apply, and the same solutions are available. If you hear either term mentioned during your property purchase, the approach is essentially the same.
Why Do These Arrangements Cause Problems?
The arrangement itself isn’t the issue. Most neighbours get along perfectly well, and problems are rare.
The concern is what could happen if something goes wrong.
The Positive Covenant Issue
English property law has a quirk that makes flying and creeping freeholds complicated. Under current law, “positive covenants” don’t automatically bind future owners. A positive covenant is an obligation to do something, like maintaining a roof or carrying out repairs.
Your current neighbour might happily agree to maintain their property in good condition. But when they sell, the new owner isn’t legally bound by that agreement.
They could theoretically refuse to maintain the structure that supports your flying freehold, and you’d have limited legal options to make them.
Access and Repair Concerns
If your bedroom sits above your neighbour’s garage, what happens when you need to repair the floor?
You might need scaffolding on their property or access through their home. Without proper agreements in place, your neighbour could refuse access or demand payment for it.
This uncertainty is what makes mortgage lenders cautious. They want to know that if problems arise, there are mechanisms in place to deal with them.
Can You Get a Mortgage on a Flying or Creeping Freehold?
Yes, you can. Over 60 UK mortgage lenders will consider flying freehold properties, including several mainstream names. The key is finding the right lender for your circumstances.
What Lenders Look For
Different lenders have different criteria.
Some will only consider properties where the flying element represents a small percentage of the total floor area. Common limits include 10%, 15%, 20%, or 25% of the property.
Others have no percentage restriction at all and will assess each application individually based on the surveyor’s report and the solicitor’s view of the title.
Lenders will check whether the property has been correctly registered at the Land Registry, with the flying freehold element properly documented. They’ll want to see that the title includes rights of support from the structure below and rights of access for repairs.
Where proper covenants exist between the property owners, this provides additional comfort.
The LTV Factor
Some lenders restrict the loan-to-value ratio they’ll offer on flying freehold properties. Where a standard purchase might allow up to 95% LTV, a flying freehold might be capped at 90%. This means you’d need a 10% deposit rather than 5%. However, this varies considerably between lenders, and some apply no additional restrictions at all.
What Is Flying Freehold Indemnity Insurance?
Flying freehold indemnity insurance is a one-off policy that protects you and your lender against financial loss if problems arise from the flying freehold arrangement.
It covers legal expenses, repair costs, and other losses that might result from disputes over access, maintenance, or structural support.
This insurance doesn’t fix the underlying legal position. It simply provides financial protection if something goes wrong.
Most policies cost between £100 and £300 as a single payment, and the cover typically lasts for the life of your ownership.
Many lenders require indemnity insurance as a condition of their mortgage offer. Even where it isn’t required, taking out a policy is sensible protection for a relatively small cost.
Buying, Remortgaging, and Buy-to-Let Considerations
First-Time Buyers and Home Movers
If you’re buying a property with a flying or creeping freehold, the process is similar to any other purchase. Your solicitor will examine the title deeds carefully and report on the flying freehold element. They’ll check what rights and covenants are in place and advise whether indemnity insurance is needed.
The main difference is that not every lender will offer a mortgage, so it pays to work with a broker who can identify suitable options before you fall in love with a property you can’t actually finance.
Remortgaging a Flying Freehold
Remortgaging is often easier than the original purchase. By the time you come to remortgage, the covenants and documentation are already in place. You’ve probably also built a relationship with your neighbour, which can help if any questions arise.
That said, you’ll still need a lender who accepts flying freeholds, so broker advice remains valuable.
Buy-to-Let Mortgages
Flying freehold buy-to-let mortgages are available from a range of lenders. The considerations are similar to residential mortgages, though lenders will also assess the property’s rental potential and condition. If you’re an investor looking at period properties in areas where flying freeholds are common, it’s worth factoring this into your planning.
Why Working with a Mortgage Broker Helps
Flying and creeping freeholds require specialist knowledge. A mortgage broker who understands this market knows which lenders accept these properties, what percentage limits they apply, and what documentation they need.
This saves you from wasting time on applications that won’t succeed.
Brokers can also access lenders that don’t deal directly with the public, some of which have more flexible criteria for flying freeholds. They’ll coordinate with your conveyancer to ensure everything is in order before the application goes in, reducing the risk of delays or declined applications.
When you’re dealing with a non-standard property type, having an expert in your corner makes the whole process smoother.
Moving Forward
A flying or creeping freehold doesn’t have to stop you buying a property you love. These arrangements are common in older UK properties, and most lenders will consider them with proper documentation in place.
The key is getting the right advice early. A solicitor experienced in flying freeholds will make sure the legal side is properly handled, and a mortgage broker who knows the market will find you a lender whose criteria fit your situation.
If you’re looking at a property with a flying or creeping freehold, or you want to remortgage one you already own, we’re here to help. Get in touch with Drake Mortgages, and we’ll connect you with an expert who can guide you through your options.
Frequently Asked Questions
A flying freehold means part of your property sits above a neighbour’s land or building. A creeping freehold is the opposite, where part of your property extends underneath a neighbouring property. Both create similar legal considerations, and mortgage lenders treat them the same way.
Yes, many mortgage lenders will consider properties with flying freeholds. Some have restrictions on the percentage of floor area that can be affected, while others assess applications case by case. Working with a broker helps you find lenders whose criteria match your property.
This is a one-off insurance policy that protects you against financial loss if problems arise from the flying freehold arrangement. It covers legal expenses and repair costs. Most policies cost between £100 and £300 and last for the duration of your ownership.
Many do, but not all. Some lenders will proceed without insurance if the property has proper documentation, including registered rights of support and enforceable covenants. Your broker and solicitor will advise what’s needed for your specific situation.
Your solicitor will identify this when examining the title deeds during the conveyancing process. Look for mentions of rooms over shared passageways, cellars extending under neighbouring properties, or balconies overhanging adjacent land. Your surveyor may also flag these arrangements.
Potential issues include neighbours refusing access for repairs, disputes over maintenance costs, and uncertainty about who’s responsible for structural support. In practice, problems are rare when neighbours cooperate, and most flying freehold owners never experience any issues.
A Deed of Covenant is a legal agreement between neighbouring property owners that sets out rights of access, support, and maintenance obligations. Having one in place makes mortgage lenders more comfortable and provides clarity if issues arise. Your solicitor can advise whether one exists or needs creating.
An independent mortgage broker who understands flying freeholds knows which lenders accept them and what criteria they apply. This saves you from rejected applications and wasted time. Brokers also access lenders not available directly to the public, some of which have more flexible criteria.