Mortgages on High-Rise Apartments
Expert Mortgage Advice for High-Rise Living
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What Is Considered a High-Rise Flat?
A high-rise flat is a multi-storey residential building commonly located in densely populated areas where housing demand is high and space is limited. Generally, a building is considered "high-rise" if it exceeds seven storeys or stands over 18 metres tall.
High-rise flats often come with specific lending considerations, particularly around fire safety. Concerns related to external cladding have led to stricter requirements, including an EWS1 (External Wall System) assessment, which can impact mortgage availability and property valuations.
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Typical Features of High-Rise Flats:
- Height: Though not strictly defined, high-rises typically exceed six to eight storeys.
- Multiple Floors: These buildings contain several levels, each with multiple flats. Lifts are standard for upper-floor access.
- Residential Purpose: The core purpose is residential living, with units ranging from compact studios to multi-bedroom flats
- Shared Facilities: Many high-rises offer communal amenities like gyms, gardens, parking, or lounges, though features vary by development.
- Urban Setting: High-rises are most common in densely populated city centres or areas with limited space for outward development.
Can You Get a Mortgage on a High-Rise Flat?
Yes, but it’s not always straightforward. Since the Grenfell Tower tragedy, lenders have become more cautious when dealing with high-rise buildings. Properties in these buildings may require an EWS1 (External Wall System) form to confirm the safety of cladding and external wall materials.
Factors That Can Affect Your Mortgage Application:
- EWS1 Rating (A1–B2)
- Cladding or fire safety defects
- Building height and construction materials
- Location and lease terms
If the property holds an A1, A2, or B1 rating, most lenders will proceed with the application as usual. However, if the property has an A3 or B2 rating, you will likely need a costed and funded repairs plan before most lenders consider your application.
Mortgage lenders are aware that as cities become more densely populated, there is greater pressure on developers to build upwards rather than outwards. This shift is reflected in their approach to mortgage assessments, with more emphasis on the property’s valuation report than its floor count.
Your Trusted Partner for High-Rise Mortgages
At Bell Financial Solutions, we understand the complexities of buying or remortgaging a high-rise apartment. We’re here to:
- Assess your eligibility with multiple lenders who understand the high-rise market
- Explain EWS1 ratings and how they impact mortgage options.
- Connect you with specialist lenders if your property requires remediation.
- Guide you through the application process from start to finish.
We’ve helped countless clients get mortgages for high-rise flats, even those facing challenges with cladding or EWS1 requirements.
Still have questions?
What deposit do I need to buy a high-rise flat?
The deposit required to buy a high-rise flat typically ranges from 10% to 20% of the property value, depending on factors like the property's EWS1 rating, your financial situation, and the lender's criteria.
Which types of high-rise are mortgage-friendly?
Mortgage-friendly high-rise flats normally have a favourable EWS1 rating, showing no major fire safety concerns. Properties in desirable areas with good transport links and amenities are more likely to attract mortgage offers. Flats with modern construction using non-combustible materials, a well-maintained building, and clear lease terms are generally easier to finance. Additionally, buildings with adequate fire safety systems, including lifts in buildings over five storeys, are more likely to meet lenders' criteria.
Why are lenders cautious about mortgages on high-rise flats?
Lenders are cautious about mortgages on high-rise flats because of fire safety concerns, particularly with buildings that have cladding or other structural issues. The risk of costly repairs, such as those related to EWS1 assessments, can affect the property’s value and marketability. High-rise flats can also be harder to sell and may depreciate over time. As a result, lenders may impose stricter lending criteria, like higher deposits.
What are the benefits of purchasing a high-rise flat?
High-rise flats are often located in highly sought-after areas in cities, providing easy access to local amenities, public transport, and work opportunities. These properties typically come with modern features, such as lifts, concierge services, and communal spaces.
What are the potential drawbacks?
Some people may not consider a high-rise flat due to the lack of outdoor space, which can be a consideration for families. Depending on the size and location of the building, parking facilities may be limited or unavailable, which could also be problematic for families with multiple cars. In the event of utility or electrical issues affecting the lift, residents on higher floors could also be faced with a challenging climb up the stairs.
We’re all ears.
Let’s have a chat about what you need and how we can help.
