Blocks of flats up to five storeys high
All flats in blocks and Scottish tenements not exceeding five storeys* in height, will be acceptable at the discretion of the valuer, subject to the guidelines and restrictions on non-traditional construction that they have been given.
The valuer will be instructed in the usual way and will report on whether the flat satisfies our requirements in terms of construction, marketability and any other associated matters.
*Five storeys means a ground floor with four floors above, ignoring any basement.
Flats over Five Storeys
We will not accept former local authority flats in blocks of more than five storeys. This also applies to maisonettes and Scottish tenements in blocks of more than five storeys that were, or still are, in local authority ownership.
Flats Over Commercial Premises
In addition to the usual construction and marketability criteria, the acceptability of flat over commercial properties will depend on:
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Nearby commercial activities. If any commercial activities in the block are likely to cause a nuisance by virtue of noise, smell or unsocial hours, we may not be prepared to lend on the flat.
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Access. Some flats over commercial premises have unsatisfactory access which may involve passing through the business area, through yards containing commercial refuse, or using poorly maintained external stairs. If any of these factors apply we may not be prepared to lend.
We recommend you contact us with as much information as possible at enquiry stage to allow us to contact a valuer for advice before issuing formal valuation instructions.
Coach house flats
Coach house flats are acceptable subject to a satisfactory valuation. A coach house flat is a freehold flat which is the only flat in the block and is built above garages and/or an access way.
Freehold Flats and Maisonettes in England, Wales and Northern Ireland
In general we will not accept freehold flats or maisonettes. Where each flat in a block has its own separate freehold title, these are unacceptable securities for us.
However, for most cases initially described as a 'freehold flat' there is usually no lease on the flat to be occupied and the occupier of the flat will be the freeholder of the whole block.
Acceptable
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Providing there are no more than four flats in total and the remaining flats are all subject to long leases, the flat without the lease is a suitable freehold security.
Unacceptable
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If there are five or more flats in the building, the application must be treated as a commercial proposition.
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If the remaining flats are let on shorthold tenancies, the application must be regarded as a commercial proposition.
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