Flying freehold mortgages

Yes, buying the freehold of a high-value block can be financed, whether through collective enfranchisement with other leaseholders or as an investment purchase. Collective enfranchisement is the statutory right of qualifying leaseholders to buy their building's freehold together. Lenders assess the ground rent income, lease lengths, and the building's condition when agreeing terms.

A buy to let mortgage is a loan used to purchase or refinance property that is rented to tenants, where affordability is assessed mainly on rental income rather than the borrower’s personal income.

No, you cannot live in a property funded by a standard buy-to-let mortgage. Buy-to-let mortgages are for rental properties only, and living in the property would breach the mortgage terms. If you intend to live there, the mortgage must be residential or regulated.

Yes, subject to valuation, rental coverage, and the effect on portfolio-level leverage. Recently purchased or refurbished property may be valued on a 180-day basis, and a product transfer is often the cheaper renewal route.

Yes, a first-time buyer can get a buy to let mortgage from some lenders, which assess the case more cautiously than one from a landlord who owns a home. Lenders that accept first-time buyers may ask for a minimum personal income, set a lower maximum loan to value or prefer standard, easily let property. The purchase does not qualify for first-time buyer relief from Stamp Duty Land Tax, because the relief is only for buyers who intend to live in the property as their only or main residence (HMRC Stamp Duty Land Tax Manual: SDLTM29831). Owning the rental also means a later home purchase is no longer a first-time purchase for stamp duty.