floating freeholds

   

 

 

A floating freehold is a type of property ownership arrangement in England & Wales that can create practical and legal problems.

✅ What it means

A floating freehold occurs when:

• A part of one freehold property physically overhangs, underlies, or is otherwise supported by another freehold property; and

• There are no legally enforceable rights of support, access, or repair between them.

Common example:

• A first-floor room belonging to one house extends over a passageway or ground-floor room belonging to a neighbour.

• Each portion is owned as separate freeholds instead of being in one freehold with a lease between them.

✅ Why it’s a problem

Lenders often dislike floating freeholds because:

• There may be no guaranteed right of support, meaning one owner could legally alter their structure and undermine the other.

• There may be no right of access to carry out necessary repairs.

• It can be hard to insure, as neither party is fully responsible for shared structural parts.

• It can complicate buying, selling, or remortgaging.

✅ How the issue is usually resolved

Options include:

• Deed of Grant to provide rights of support, access, and repair.

• Mutual covenants between owners.

• Converting the arrangement to one freehold with a long lease to the other party.

• Title indemnity insurance (a last resort for lenders).

✅ Should you be concerned?

If you’re buying or selling a property and the solicitor says there is a floating freehold, it’s important to:

• Understand exactly what part is affected.

• Check whether rights already exist.

• Confirm your lender is satisfied.

• Get proper legal advice before exchanging contracts.

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If you want, I can explain:
✅ whether your situation likely counts as a floating freehold
✅ if a lender will accept it
✅ how complex the fix is
✅ how to negotiate with the seller or solicitor

I can check whether your situation counts as a floating freehold — I just need a description of the layout.

Please tell me:

1. What part of your property overhangs or sits under someone else’s?
   (e.g., “the first-floor bedroom extends over my neighbour’s passageway”)

2. Are the parts owned under separate freeholds?
   (If you’re not sure, say so — we can figure it out.)

3. Has your solicitor mentioned anything about rights of support or access?

Once you give me those details, I can tell you very clearly whether it’s a floating freehold and how serious it

When lenders usually accept a floating freehold

Most mainstream lenders will consider it if all of the following apply:

1. There are proper legal rights in place

• A Deed of Grant or similar document gives:

  • Right of support

  • Right of access (to inspect, repair, maintain)

  • Right of shelter / protection from weather

If these exist and are enforceable, many lenders are satisfied.

2. The floating part is not too large

As a rough rule:

• Lenders are okay if the overhanging/underlying area is under 20% of the total floor area.

• If it’s a whole floor, lenders become more cautious.

3. The arrangement is common in the area

Example: Victorian terraced houses where a flying freehold bedroom sits over a neighbour’s alleyway — lenders accept these all the time if rights exist.

4. Indemnity insurance is available

Some lenders accept a floating freehold if:

• A Flying Freehold Indemnity Policy is taken out.

• Your solicitor confirms risks are minimal.

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❌ When lenders may refuse it

A mortgage is likely to be rejected if:

• There are no rights of support or access, and the neighbour refuses to sign anything.

• The floating element makes up a large structural portion of the property.

• There is a history of disputes between the properties.

• The lender has a strict policy (Nationwide & Santander can be stricter).

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✅ What most big lenders say (general guide)

• Barclays, HSBC, NatWest: Usually OK if rights are in place.

• Nationwide: More cautious; often require strong legal rights or may decline.

• Santander: Case-by-case; often require indemnity insurance.

• Halifax: Generally reasonable if solicitor gives a clean report.

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