Maisonette Mortgages Explained

A maisonette is a type of self-contained flat or apartment with a private entrance and rooms usually spread across two floors. They can be cost-effective, but how difficult is it to get a mortgage on this type of property? Let's find out...

Can you get a mortgage on a maisonette?

Yes and it usually isn’t any more complicated than getting a mortgage on a standard house or flat. Some lenders, however, have slightly higher deposit requirements for this property type, especially if it’s a new build, an ex-local authority or freehold maisonette.

Leasehold maisonettes

Getting a mortgage to buy a leasehold maisonette property, which means you would own the property and pay a small amount of ground rent and a service charge on the land it occupies, is far more straightforward that getting a mortgage on a freehold maisonette.

This is because the vast majority of maisonettes in the UK are sold on a leasehold basis. It is standard practice because service charge proceeds can be used for essential maintenance to any communal areas, such as corridors, the roof, gutters or any shared outdoor spaces.

Lenders are generally more comfortable lending on leasehold maisonettes with minimal caveats as they can be confident essential repairs will be kept on top of.

Freehold maisonettes

Buying a freehold maisonette would mean you own the property and the land it sits on, and therefore be solely responsible for funding any repairs to the part of the site you own.

There are only 11 lenders available for freehold maisonette mortgages and many of them will apply caveats, such as higher deposit requirements for this tenure type.

New builds

New build maisonettes aren’t always more difficult to get a mortgage on and it is possible to get approved with just 5% deposit. Some lenders, however, will expect at least 15% or more.

Services charges and ground rent can be higher for new build properties.

Buy-to-let mortgages for new build maisonettes can be more difficult to secure than residential mortgages, as the property will have no proven history of generating rent.

Ex-local authority properties

These can be more difficult to get a mortgage on as ex-local authority maisonettes sometimes have non-standard construction features, which deter some lenders.

Ex-local authority maisonettes with open deck/balcony access can also be more difficult to get a mortgage on as some lenders associate these features with security issues and a higher potential for anti-social behaviour, but this may not apply in all areas.

Full lending criteria

Below you will find the full lending criteria that mortgage providers use for maisonettes:

• Deposit requirements: It is possible to get approved with just 5% of the property’s value as a deposit, but some lenders will request 15% or more for maisonettes.
• Tenure type: Your mortgage options will be more restricted for freehold maisonettes and the deposit requirements are likely to be higher.
• Property type: New builds occasionally have higher deposit requirements, as do ex-local authority properties and anything with non-standard construction. The latter two types may call for a specialist lender and have extra restrictions attached.
• Credit history: Having clean credit will open you up to a wider range of mortgage lenders, but it is still possible to be approved with certain types of bad credit.
• Age: Your mortgage options will begin to decrease the closer you get to your 75th birthday, but there are lenders who specialise in retired borrowers.

How to get a maisonette mortgage

The process for getting a mortgage to buy a maisonette isn’t really any different than it is for other property types, but a bit of specific research into the property itself doesn’t hurt.

It is advisable to find out the following about the maisonette you are buying:

• Whether it is a leasehold or freehold property
• How long is left on the lease (if leasehold)
• Are there any restrictive terms and conditions in place with the lease?
• How much the ground rent and service charges are

Once you have this information, it is a good idea to speak to a mortgage broker who specialises in maisonette properties. There are advisers on our team with the exact knowledge and experience you need, and with their help, you could secure a better deal on your maisonette mortgage, whether you’re buying a freehold or leasehold property.

You can book a free, no-obligation chat with a maisonettes mortgage expert below:

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Which mortgage lenders are available?

There will be far more mortgage lenders available if you are buying a leasehold maisonette rather than a freehold. Below we have provided examples of the lenders available for both tenure types, along with some of the specific criteria they use to assess applicants:

Lenders for leasehold maisonettes

The following mortgage providers are among those available:

• Barclays: Will lend at 95% LTV under the mortgage guarantee scheme or for inter-family sales. Deposit requirements are otherwise 10-15%.
• Halifax: Will cap the LTV at between 95% and 75% depending on the amount borrowed, whether the property is a new build and other factors.
• Santander: Lends at between 95% and 85% for non-new build maisonettes.
• Bank of Ireland: Will lend up to 95% LTV but will reject applications if the maisonette is next to, opposite, above or close to commercial premises.

Lenders for for freehold maisonettes

The following mortgage providers are among those available for freehold:

• Nationwide: Will lend at 85% LTV or 75% if the property is a new build.
• Halifax: Will consider freehold maisonettes if there are no more than four flats in the building, with the applicant owning one of them in their personal name.
• The Mortgage Lender: Will only lend on freehold maisonettes in Scotland. Applications from this property type in England and Wales will be rejected.
• West One Loans: Will consider lending if the applicants own less than 50% of the freehold, unless the freehold is included in the security.

Can you get a buy-to-let mortgage for a maisonette property?

Yes. There are almost 80 buy-to-let mortgage lenders available for maisonette properties, many of whom will request a deposit of between 15% and 25% of the property value.

For freehold buy-to-let mortgages, the number of available lenders is around 14.

Maisonettes can be a profitable investment for landlords as they are often less expensive than other types of properties, but your lender is likely to place security on how much demand there is for this property type in the area you are buying in.

See our complete guide to buy-to-let mortgages for more information.

Why choose Teito for your maisonette mortgage?

It is always a good idea to speak to a broker before you apply for a mortgage, particularly if the property is a freehold, new build or ex-local authority building. There are brokers on our team who specialise in these properties and they can often access exclusive deals.

Here are just some of the reasons people choose us for their mortgage needs:

• Our brokers have extensive knowledge of maisonette mortgages
• They can access exclusive rates and deals
• We have 5-star rated on leading review websites
• You can secure an agreement in principle in minutes

Ready to take advantage of a free, no-obligation chat with a broker who specialises in maisonette mortgages to find out what your options are? Get started here.