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.

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.