What is a Flying Freehold, and Why Lenders Dislike Them

What is a Flying Freehold?

A flying freehold arises when part of a freehold property is physically located above or below land that belongs to someone else. Common examples include:

• A bedroom or room in one house that projects over an adjoining freehold property (common in older terraced houses)
• A garage, cellar, or storage room situated beneath a property owned by a different freeholder
• An archway or covered access passage that forms part of one property but passes through another

The term "flying" refers to the fact that the relevant part is suspended, it has no direct connection to the land below it that forms the owner's own title.

Why is a Flying Freehold a Problem?

English property law has a structural weakness: **positive covenants** (obligations to do something, such as maintain a shared structure) do not automatically bind successive freehold owners. In a flying freehold situation, each property depends physically on the other, but without a mechanism to enforce maintenance obligations on future owners, those obligations can fall away.

The classic problem is where the flying section relies on the lower structure for physical support. If the lower owner's structure falls into disrepair, the flying freehold portion may be damaged, and enforcing repair obligations through freehold law alone is difficult and costly.

How Lenders View Flying Freeholds

Most high-street mortgage lenders are cautious and some refuse to lend unless satisfactory protection is in place. Lenders typically require one or more of:

• Evidence of a **mutual enforcement deed** or **building scheme** between the properties
• A **flying freehold indemnity insurance policy** covering the lender and owner
• Confirmation that the flying section represents only a **small proportion** of the overall property (many lenders apply a 15–20% threshold)

Flying Freehold Indemnity Insurance

The most practical and common solution. A one-off policy covers:

• The cost of repairs the neighbouring owner has failed to carry out
• Legal costs in pursuing a claim
• Any reduction in the property's value

Premiums are typically modest where the flying section is small and the property is otherwise straightforward. The policy runs with the property and protects future owners and lenders.

If You Are Selling

Disclose the flying freehold early in the transaction. Gather any existing indemnity insurance documentation and title deeds. Property Passport UK can help you centralise legal documents so they are readily available when you come to sell, avoiding delays that often arise when flying freehold documentation cannot be located.