Head of Content
Mortgage Advisor & Director
Can I get a mortgage on a high rise flat?
You will find that the pool of willing lenders is reduced for high-rise flats.
This means that while it's not impossible to get a mortgage, it can be more of a challenge to have your application approved. As a specialist mortgage product, we would recommend engaging a competent and experienced broker to not only boost your chances of approval but to get the best rates possible.
At Teito, our team of experts have helped many people like you to find their perfect mortgage, even on non-standard homes. If you're ready to get started, start comparing deals today, and we promise to make your mortgage journey as stress-free and straightforward as possible.
What classes as a high rise flat?
Depending on the lender, high-rise can be classed as anything from the 5th floor to the 10th floor, typically higher in London than elsewhere.
The type of construction will also make a difference, with concrete blocks being classed as non-standard. Lenders are generally more amenable to modern blocks of flats, and a lift is generally a must.
Why is it harder to get a mortgage on a high rise flat?
Lenders have a few concerns with high rise flats.
Homeowner Preferences
Changes in living preferences can reduce the value of flats over time.
In the early 2000s, many lenders suffered from devaluation following considerable lending on high-rise flats and are keen not to repeat this. Following a coronavirus-induced lockdown, many have realised the benefits of having outdoor space which may have further reduced demand for flats.
Leasehold, Freehold or Share of Freehold
Whether the flat is leasehold (most common), freehold or share of freehold, lenders have concerns.
The main issue that lenders tend to have with leasehold properties is the fact that there tends to be ambiguity in who is responsible for what maintenance. If the property fails to be properly maintained, this can negatively affect the value and then, in turn, impacts on the mortgage lender. Another concern is the increased possibility for disputes between neighbours that can result from incorrect maintenance; this can reduce the number of interested buyers in the future.
Several well-known lenders do not lend on freehold flats at all.
Property Size
Lenders can also have concerns about the size of the flat, as many high rise flats will be small and not meet standard size requirements.
Mortgage lenders generally expect flats to be a minimum of 30 square metres. Anything below 12 square metres is illegal, according to the 2004 Housing Act. This is something to be aware of, particularly in London.
Ex Local Authority Flats
Service charges can be expensive for ex-local authority flats, which is a primary concern for lenders for these types of properties.
How can I get a mortgage on a high rise flat?
If you have your heart set on a high-rise flat, your best chance of getting a mortgage on a high rise flat is to use an experienced whole of market broker. They will not only be able to recommend the most amenable lenders but can also negotiate to get you the best rates. If you're ready to find your perfect mortgage, get started by completing our simple online form.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
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Last updated 28 February 2024