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.
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:
- What part of your property overhangs or sits under someone else’s?
(e.g., “the first-floor bedroom extends over my neighbour’s passageway”) - Are the parts owned under separate freeholds?
(If you’re not sure, say so — we can figure it out.) - 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.
❌ 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).
✅ 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.