How to Remortgage a Property with a Flying Freehold Over a Shared Driveway London

Remortgaging a property is often a straightforward financial maneuver intended to secure a better interest rate or release equity. However, when the property in question involves a "flying freehold"—especially one situated over a shared driveway—the process becomes significantly more complex. A flying freehold occurs when a part of one property reaches over or under a neighboring property, such as a bedroom extending over a shared access alley or a garage. While historically common in older terraced housing, modern lenders view these arrangements with a degree of caution due to potential issues with maintenance rights and structural support.

Understanding the Lender’s Perspective on Flying Freeholds

The primary concern for any bank or building society during a remortgage is the security of their investment. With a flying freehold over a shared driveway, the structural integrity of your portion of the house depends entirely on the maintenance of the property beneath it. If the neighbor fails to maintain the supporting walls or the driveway area, your property could suffer. Most lenders have a specific percentage limit on how much of the total floor area can be a flying freehold—typically between 10% and 15%. If your property exceeds this, finding a remortgage deal requires a specialist touch.

The Role of Title Indemnity Insurance

When remortgaging a property with a flying freehold, your solicitor will likely suggest a Title Indemnity Insurance policy. This is often a non-negotiable requirement for lenders who are willing to proceed with the loan. The insurance is designed to protect the lender (and the owner) against financial loss arising from the lack of formal covenants in the title deeds. For instance, if you don't have a legal right to enter the neighbor's property to repair the "flying" part of your house, the insurance provides a safety net. Explaining the necessity of these policies to a client is a hallmark of a well-trained professional. A comprehensivecemap mortgage advisor course ensures that advisors can explain these technical legal requirements in plain English, helping homeowners understand why an extra insurance premium is necessary to secure their new mortgage rate.

Navigating Shared Driveway Easements and Access Rights

A shared driveway adds another layer of complexity to the remortgage process. Lenders want to see that there are clear "easements" or rights of way recorded in the deeds. If the flying freehold hangs over a driveway that is the only access point for several houses, there must be a legal agreement ensuring that no one can block access or dispute the maintenance of that driveway. During a remortgage valuation, the surveyor will look for these potential points of friction. If the legal rights are "silent" or poorly drafted, the remortgage could stall.

The Impact on Property Valuation and Marketability

One of the hardest hurdles in remortgaging a flying freehold is the valuation. Even if you find a lender, the surveyor may apply a "down-valuation" because flying freeholds are perceived as harder to sell to the general public. This can affect your Loan-to-Value (LTV) ratio, potentially pushing you into a higher interest bracket. When discussing these risks with clients, advisors must use a data-driven approach. They need to look at comparable sales in the area to justify the value to the lender.

Contact seller Share