Imagine finding your dream home – a charming old cottage – only to learn that part of its upstairs bedroom extends over your neighbour’s garage.
You’ve just discovered the quirk of a flying freehold, a feature found in many historic British properties built in tightly packed streets.
Flying freeholds are relatively rare overall, but they affect a significant number of period homes across the UK, especially in older terraces and conversions.
In fact, back in 2011, the Law Commission recommended simplifying the rules surrounding flying freeholds; however, as of 2025, no legal reform has been implemented.
This means the old complexities remain, but with the right knowledge and preparation, you can still navigate a flying freehold mortgage successfully.
Table of Contents
What Is a Flying Freehold?
A flying freehold is a situation where part of a freehold property lies above or below someone else’s property.
In other words, one owner’s freehold “flies over” another owner’s land.
For example, a bedroom or room might extend over a shared alleyway, or a balcony might overhang a neighbour’s garden.
The owner of the flying freehold owns their portion of the building, but not the land directly beneath that overhanging part.
Common examples include:
- An upper-floor room built over a passageway or archway that others use
- A section of a house (like a bedroom or bay window) that is over a neighbour’s property (such as above their garage)
- A balcony that protrudes into the airspace of an adjacent property
In a normal freehold, you own both the building and the ground beneath it outright. In a flying freehold, your ownership is “floating” over someone else’s ground, hence the name.
Importantly, the property is still freehold (not leasehold); you’re just sharing an interlocking structure with a neighbour in an unusual way.
Flying freeholds are most often found in older buildings where boundary lines weren’t straightforward, such as historic cottages, Victorian terraces, or converted houses.
Many owners don’t even realize they have a flying freehold until it comes up in the title checks during a sale.
Why Are Flying Freehold Mortgages Difficult?
Mortgage lenders are wary of flying freeholds because they introduce legal uncertainties and potential disputes between neighbours.
With a flying freehold, the usual clear-cut responsibilities for maintenance can get messy. Here are the key concerns:
Access and Maintenance
If your overhanging part needs repair (say, fixing a leaky floor or roof), you might need to go onto your neighbour’s property to do it.
If there are no formal rights of access in the deeds, your neighbour could refuse, leaving you stuck.
Who Pays for Repairs
Flying freeholds create grey areas over who is responsible for the upkeep of the overlapping sections.
For instance, if your room sits above your neighbour’s living space, what if a leak from your part damages their ceiling?
Or if their neglect causes structural issues in your overhanging room? The law is not straightforward on these points.
Legal Complexity
The rules governing flying freeholds are old and haven’t been modernized. This means any conflicts might have to be resolved through cumbersome legal action or negotiations, which is something lenders prefer to avoid.
Marketability and Value
Properties with unusual legal situations are seen as harder to sell if the lender ever needs to repossess. Some buyers shy away from flying freeholds entirely because the term sounds complicated.
Due to these factors, many mainstream lenders have adopted a cautious policy. Some banks simply choose to decline any mortgage on a flying freehold property to avoid the complications.
Others are willing to lend, but they will scrutinize the situation more closely than usual.
We recommend working with a mortgage advisor who is experienced in handling flying freeholds. They will know which banks to approach (and which to avoid) given your property’s specifics.
This expertise can save you a lot of time and prevent deals from falling through.
Can You Get a Mortgage on a Flying Freehold?
Yes, mortgages are available for flying freehold properties, but your options may be more limited than for a standard house.
Most big lenders will consider it only if the flying portion is fairly small and all the legal safeguards are in place.
Essentially, they want to be sure that the overlapping part of the property doesn’t pose a huge risk.
Here’s what you can generally expect:
Size of the Flying Freehold
Lenders usually set an upper limit on how much of the property can be “flying” (overhanging).
Often, if the flying section is around 15% or less of the total floor area, mainstream lenders are comfortable.
Some allow a bit more, up to 20% or even 25%, but it varies by lender. Ideally, the smaller the flying part relative to the whole property, the more likely a lender will say yes.
Legal Documentation
You’ll need solid legal paperwork to satisfy any lender. This includes proof in the title deeds that the flying freehold is properly documented and legally recognized.
A crucial document is often a Deed of Covenant (sometimes called a Deed of Mutual Covenant) between you and the neighbouring owner.
This deed should spell out each party’s rights and obligations, for example, giving you the right to enter the neighbour’s property for repairs, and requiring both of you to support and maintain your respective parts so they don’t harm each other.
Indemnity Insurance
It’s almost always required to get a flying freehold indemnity insurance policy when taking a mortgage on such a property.
This is a special insurance that covers you (and indirectly the lender) in case problems arise due to the flying freehold arrangement.
For example, if you suffer a loss because you can’t enforce repairs on the neighbouring property. Most lenders make this a condition of the loan, meaning you must purchase a policy before they’ll release funds.
Higher Deposit & Valuation
Don’t be surprised if the lender asks for a larger deposit on a flying freehold property.
Many banks limit the loan-to-value (LTV) ratio for these cases. For instance, some will only lend up to 80% of the property’s value (meaning a 20% deposit).
Case-by-Case Decisions
Even with all the above, each lender will make a decision on a case-by-case basis. There’s no universal rule; policies differ.
Some small building societies are known to be more flexible if the risk is small, whereas some big lenders have a blanket “no flying freeholds” policy.
Working with an experienced mortgage advisor can be very helpful, as they’ll know which banks are currently receptive.
Frequently Asked Questions
What is a creeping freehold?
Creeping freehold is simply another term for a flying freehold. Both refer to a portion of a property that overhangs or underlies a neighbour’s property in a freehold arrangement.
Can I convert a flying freehold to a normal arrangement (like leasehold)?
It is possible, in theory, to convert a flying freehold into a long leasehold arrangement, where one owner gives the other a lease for the overlapping part. Again, organising this sort of arrangement would be a complex legal process.
How common are flying freehold properties in the UK?
Flying freeholds are relatively uncommon in modern buildings, but they are not rare in older properties. There are no official statistics, but these can often be found in historic terraces, converted mansions, or buildings with archways and alleyways.
Do I need special insurance for a flying freehold?
Yes, you will almost certainly need a specific flying freehold indemnity insurance policy if you’re getting a mortgage. This one-time policy (or sometimes a modest annual premium) protects you and the lender in case a dispute or loss arises because you can’t enforce repairs on the adjoining property, or vice versa.
What if my neighbour won’t cooperate with repairs in a flying freehold scenario?
Ideally, both neighbours with a shared structure maintain their parts responsibly. If your neighbour isn’t cooperating, for example, refusing you access for a necessary repair, you do have some legal backup.
Your home may be repossessed if you do not keep up repayments on your mortgage.
All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.
Our goal is simple – to provide most up-to-date and accurate mortgage information to make your mortgage journey as stress-free as possible. Have a question? Fill up the quick form and one of our mortgage advisor will connect with you.
