Guide

Non-Standard Mortgages

It’s 2025, happy new year to you all! If you’re in the UK, you’re probably stuck indoors, as I am, looking out at the horrific weather. If you are thinking moving home this year and considering buying on an estate, I thought I would put my time to good use and revisit ‘non-standard mortgages’.

Yesterday, I put out a call on Instagram for tips from those who’ve successfully navigated the challenges of securing a mortgage on a ‘tricky’ flat or estate—generally speaking Halifax came out on top — full list of results are at the bottom the page. I also thought it would be useful to share some general considerations when buying a property in a modernist estate…

Leasehold Properties

If you’re buying a flat, chances are it’ll be leasehold. I’ve written a Substack post on this antiquated system, which you can read here.

When buying a leasehold flat, check how many years remain on the lease. If it’s 80 years or fewer, banks are unlikely to lend. Even if it’s nearing 80 years, bear in mind the cost of extending the lease — the price increases significantly once it falls below that threshold.

If you’re looking to sell a property nearing the 80-year threshold, my advice is to start the process of extending the lease before putting it on the market. Get a clear understanding of the cost involved and price your property accordingly.

Service Charges

Ah, the joys of service charges! There are two main types to consider:

  • Annual Service Charges: These cover the general day-to-day running of the estate — lighting, gardening, caretaking, general repairs, lifts, and (if applicable) communal heating. In recent years, this portion of service charges has risen sharply due to increased fuel prices.
  • Major Works Charges: These fund large-scale projects such as new windows, roof repairs, or heating system upgrades. For estates with district heating networks, be cautious — many 1960s systems are nearing the end of their lifespan. Councils aiming for net zero may require complete overhauls.

If the property is in a private estate (not ex-local authority), it may have a sinking fund you pay into, which helps cover the cost of major works.

Do your research. Check if the estate has recently undergone major works, and talk to other leaseholders (though bear in mind they may be jaded after years of dealing with the council). Speaking from experience, I’ve yet to meet a leaseholder who speaks highly of their London Borough Council. As long as you factor these costs into your calculations, there should be no surprises.

Neighbours

This might seem obvious, but the very nature of high-density living means you’ll have people living close by. Visit the property at different times of the day, knock on doors, and introduce yourself. I’ve met some of my closest friends through being neighbours, but I also moved out of my last flat because the upstairs neighbour wouldn’t stop playing house music at 2 a.m.

Pros of Living in a Modernist Estate

Obviously, I’m biased, but I’m also realistic! To me, it’s obvious: if you want to live in a home that’s architect-designed, with no wasted space, built to last and to live in (not for profit), with large windows, straight walls, a sense of community and a great location, then a flat in a modernist estate is the way to go.

This doesn’t always mean ex-council — there are plenty of post-war blocks of flats built for private ownership. Generally speaking, ex-council properties will be cheaper, but securing a mortgage for them can be more challenging.

Mortgages

Here’s where it gets tricky. Banks evaluate factors to ensure the property can be easily resold if repayments aren’t met. For purpose-built flats, these are key considerations:

  • Building height (over five storeys can be problematic)
  • Deck/balcony access
  • Construction type
  • Flat roofs
  • Ratio of council tenants to leaseholders
  • Area
  • Loan-to-value ratio (higher deposits are often required)

Based on responses to my Instagram post, Halifax emerged as the most willing lender. Using a broker experienced with purpose-built flats can also help. Here are two highly recommended by others:

Estate-Specific Mortgage Feedback

Here’s a summary of responses regarding specific estates:

  • Alexandra and Ainsworth Way, London NW8 (Grade II*): Halifax, HSBC (refused by Santander)
  • Park Hill, Sheffield (Grade II*): Halifax (refused by other lenders)
  • Vanbrugh Park Estate, London SE3: NatWest (refused by Clydesdale)
  • Cossall Estate, Peckham SE15: Santander (refused by Principality due to high service charges relative to property value)
  • Bevin Court, London WC1X (Grade II): Halifax
  • Pullman Court, London SW2 (Grade II*): First Direct
  • Trellick Tower, London W10 (Grade II*): Halifax
  • Maiden Lane Estate, London NW1: For one of the houses (not flats) — Santander

Keep Me Updated

If you’ve faced a similar situation or have recommendations (or warnings) about specific banks or brokers, please let me know. I’d love to keep this guide updated.

You can read my original post, from 2015, on the subject here.