UK Finance Lenders' Handbook Section 5.14 Policy
Under Section 5.14 of the UK Finance Lenders' Handbook for England and Wales, conveyancing solicitors are under a strict duty to inspect flying freeholds.
Section 5.14 mandates that the title deeds must contain adequate reciprocal rights of support, protection, and entry for repair. If such covenants are absent, the conveyancer must report the defect to the lender or arrange a title indemnity policy.
Different UK mortgage lenders adopt varying tolerance thresholds:
• Halifax / Bank of Scotland: Accepts flying freeholds up to 25% of gross floor area with indemnity.
• Nationwide Building Society: Considers flying freeholds acceptable up to 15% without formal referral; up to 25% with indemnity.
• Barclays: Accepts minor overhangs provided standard rights of support exist.
• Virgin Money / Coventry BS: Typically declines any property with a flying freehold element.
| Mortgage Lender | Tolerance Limit (% of Floor Area) | Indemnity Policy Required? | Policy Wording / Rule |
|---|---|---|---|
| Halifax | Up to 25% | Yes, if covenants absent | Accepted if fully supported by title indemnity |
| Nationwide | Up to 15% (Flexible to 25%) | Yes, mandatory over 15% | Acceptable provided marketability is unaffected |
| Santander | Case-by-Case (typically <=20%) | Yes | Requires surveyor confirmation of structural support |
| Barclays | Up to 15% | Yes | Subject to conveyancer certification under Sec. 5.14 |
| Virgin Money | 0% (Declined) | N/A | Categorical refusal of flying freehold titles |
The Essential Role of Title Indemnity Insurance
Where title deeds lack express rights of support, conveyancers resolve the issue by purchasing a Flying Freehold Title Indemnity Insurance policy.
For a one-off single premium of £150 to £350, the policy protects the homeowner and mortgage lender against financial loss if the supporting neighbour refuses repairs, allows the structure to collapse, or blocks access for essential maintenance.