What Is Commonhold? – what agents need to know
Publication of the Commonhold White Paper and plans to end the sale of new leasehold flats, with legislation expected later this year. Mark Chick of the Association of Leasehold Enfranchisement Practitioners provides information on Commonhold, a form of property ownership in England and Wales.
Key points:
- Commonhold Ownership: Homeowners own their individual flats while collectively managing shared areas through a Commonhold Association. Unlike leasehold, Commonhold has no time limit, giving owners indefinite ownership and more control over maintenance and costs.
- Advantages: Commonhold is democratic, with all flat owners having a vote in the management of the building. There is a single document, the Commonhold Community Statement, outlining obligations, providing transparency.
- Disadvantages: Collective management can lead to issues if flat owners are reluctant to spend on necessary maintenance. There is a lack of understanding around Commonhold, and several legal and technical issues need to be resolved.
- Future Challenges: The Labour government supports Commonhold as a fairer system, but challenges remain to make it work for all types of development. The sale of new leasehold flats will be banned once necessary reforms are in place, but caution is urged to avoid negatively impacting existing leasehold structures.
