Flying Freehold

[Hayley27]

Hi there,
Just looking for some advice please...
I am looking to buy a new property which I really like, but have discovered that it is a flying freehold. One of the bedrooms is what I would describe as a coach house. Underneath this bedroom is the vehicle access to the parking at the rear of the properties. It would be accessed by myself, and my neighbours directly either side of me (mine and two other properties in total)
I have recently been informed that a flying Freehold will cause problems with conveyancing and I might struggle to get a mortgage as lenders don't like flying freeholds.
Could you all please advise as to what sort of problems I might encounter if I proceed with this property?
Many thanks in advance.

[des8]

\\\who owns the access over which the property hangs?

Some lenders have a policy of not lending on any property where there is a flying freehold whilst others choose to do so on a case-by case basis. Some companies will lend if the flying freehold does not exceed a set limit, often 15% of the total floor area of the building. Even if a lender is prepared to lend, there is no guarantee that a future lender will do so, rendering the property blighted to a degree.

Common problems associated with flying freeholds are problems with repairs, access and enforcing covenants. It can be difficult for owners to organise repairs as there is no automatic right to access for erecting scaffolding on the land underneath,Although The Access to Neighbouring Land Act allows access for repairs but not development.

[Hayley27]

I would own the access to the house. I would also own the entrance to the 'floating' bedroom and the bedroom itself. There would be no other access to this bedroom from any other property.
But I'm guessing the road underneath the bedroom would be a public highway. It's not a through road though. It just leads to the back of the property where there is allocated parking.

[R0b]

What Des is trying to say is that a 'flying freehold' is a bit of a complication generally where (you in this case) would own the air space i.e. the floating property whereas someone else owns the land underneath.

Disputes usually arise when it comes to maintenance and repairs because positive covenants (an obligation to do something) do not run with the land, which in other words means that those original covenants between the buyer and seller do not automatically bind subsequent owners, unless there is a restriction that prevents the land being sold unless the purchaser enters into a deed of covenant to legally bind themselves into complying with those covenants. You won't know that until the conveyancer starts the transaction and carries out searches and a review of the title register.

Whilst most people are more than happy to allow others to repair their property but its not always the case and because you wouldn't own the space underneath the floating property, therein lies the problems highlighted by Des for lenders. For these types of sales, it is common for buyers to consider purchasing what is known as flying freehold insurance. This is a special type of insurance which can protect you in the event of a dispute with the owner of the land and covers you for things such as legal expenses in the event matters have to go to court.

An alternative option would be for both parties to enter into a deed of easement which would effectively rectify the concerns lenders have. You would need to have the consent of the other landowner in order to do this and isn't always easy as said. Both sides basically agree a set of common rights whereby both owners have the right for support and maintenance and access to each other's land to carry out repairs. It is important to ensure that these rights or obligations also bind future owners too, otherwise such an agreement would become pointless and may cause you difficulties in selling the property some time later.

[Crazy council]

Hi

If its a floating freehold just so the passageway undernieth is acsessable for parking for the others, its a bit easyer to deal with for morgage apps and stuff. Its the insurance that can make it difficult to sort, but just paperwork difficult, it deosnt really block anything

I have recently been informed that a flying Freehold will cause problems with conveyancing and I might struggle to get a mortgage as lenders don't like flying freeholds.

Make sure your using a proper compitent solsityors/convayor, and there not just advising you in relation to morgagee companies they deal with.