Residential policy
LTVs
- Flats in buildings with 4 storeys or fewer are acceptable to 95% LTV
- Flats in buildings with 5-10 storeys are acceptable to 85% LTV (95% for shared ownership)
- Flats in buildings with more than 10 storeys are acceptable to 80% LTV (95% for shared ownership)
- Ex local authority, housing association or MOD flats are acceptable to 85% LTV (but not for shared ownership)
- New build flats are acceptable to 80% LTV (95% for shared ownership)
Types of flats
- Converted flats are defined as new build until the later of 2 years after conversion or the date of first occupation
- Studio flats with an internal floor area of at least 30m2 are acceptable
- We treat maisonettes the same as flats
Multi-storey
Flats on the 5th storey or higher must be serviced by a lift. Where a flat is located on the 4th storey or below, there is no requirement for a lift to be provided irrespective of the number of floors to the block. Flats on the 5th story or higher which are not serviced by a lift are only considered acceptable if there is demonstrable demand due to the location.
The number of storeys includes all floors and if there are multiple blocks in a development which share an entrance, we will use the storey height of the highest block.
Ex local authority, housing association or MOD flats must not be in a building of over 7 storeys. Deck or balcony access is acceptable subject to valuer comment.
Commercial premises
Flats over or adjacent to commercial premises are acceptable subject to valuer assessment including that the commercial premises doesn’t detriment demand or enjoyment of the property. The flat’s entrance must not be via the commercial premises and flats immediately above or adjacent to food, drink or dry cleaners will usually be unacceptable.
Tenure
Flats must be leasehold (or in Scotland, heritable or leasehold). Share of freehold properties are acceptable but there must be an acceptable underlying lease upon which we can place our charge.
Freehold flats are only acceptable for a Tyneside flat where there are reciprocating lease/ freehold arrangements, with our security being the lease of the subject flat and the freehold of the other flat.