BLB Solicitors
  • +01225 755656
  • info@blbsolicitors.co.uk
BLB Solicitors
  • +01225 755656
  • info@blbsolicitors.co.uk
  • Home
  • Services for You
    • Conveyancing Solicitors
    • Leasehold Property Rights
    • Property Dispute Solicitors
    • Divorce, Family Law and Mediation
    • Lifetime Planning and Wills
    • Probate and Estate Administration
    • Personal Injury Compensation
    • Medical Negligence Solicitors
  • Services for Business
    • Commercial Property
    • Commercial Property Dispute Solicitors
    • Corporate & Commercial Legal Advice for Business
    • Estate Management Solicitors
  • BLB Solicitors Locations
    • Almondsbury Solicitors
    • Bath Solicitors
    • Bristol Solicitors
    • Bradford on Avon Solicitors
    • Swindon Solicitors
    • Trowbridge Solicitors
  • About Us
    • Our Team
    • Working for BLB
    • BLB Solicitors – How we work
    • Making Payments to BLB Solicitors
    • Instructing BLB Solicitors
    • Terms of Business
    • Complaints Policy
  • Blog
  • Contact Us

Home » Government push to reinvigorate commonhold

Conveyancing
Harbourside Apartments
Jun 7th, 2021

At BLB Solicitors, our goal is simple – to deliver you clear, practical legal advice and cost-effective solutions. We hope you enjoy exploring our Blog. If you can’t find what you’re looking for, please do contact us.

Government push to reinvigorate commonhold

Discover more about the government’s new plans to promote commonhold as a viable alternative to leasehold.

Our residential conveyancing team are available on 01225 462871. Alternatively, you can email them, or complete the Contact Form at the foot of this page. Conveyancing quotes are also available online.

With leasehold reform still a battleground of competing interests, the government has launched a Commonhold Council of leading property industry experts to advise them on the implementation of a reformed commonhold regime.

Housing Secretary, Robert Jenrick, said this formed part of the government’s attempts to usher in the most significant reforms to property law in England for 40 years.

Commonhold and Leasehold Reform Act 2002

The Commonhold and Leasehold Reform Act 2002 introduced into English and Welsh law the first new type of property ownership in over 75 years. Commonhold was seen as the answer to the multiple problems created by long leases.

Commonhold meaning

A commonhold scheme can only be created out of freehold property, either land or a building (which can be new or existing). The commonhold comes into effect as soon as the property is registered as a commonhold at the Land Registry. The commonhold framework is quite straightforward. The freehold property is divided into:

  • units (flats); and
  • common areas.

This allows an individual (a “unit holder”) to own the freehold of their flat. The freehold ownership of the common areas such as the actual structure of the building, corridors, stairs, entrance hall, and any garden or car park, is vested in a ‘commonhold association’, a company limited by guarantee. Membership of the commonhold association is limited to the unit holders, all of whom are entitled to membership. Unit holders each contribute a proportion of the cost of insuring the building and managing, maintaining and repairing the common areas.

Surprisingly, despite the fanfare that greeted its introduction almost 20 years ago, commonhold has struggled to gain any real traction at all, with fewer than 20 schemes and only around 150 commonhold units ever registered.

Commonhold Council

The launch of the new Commonhold Council follows an announcement in the Queen’s Speech which signalled the government’s intention to reform and modernise the housing system. Commonhold gives homeowners more freedom over decision-making than leasehold, and ultimately, they are in control of their building.

Charles Roe, director of mortgages at UK Finance, said that work to reinvigorate commonhold as an attractive alternative to leasehold ownership of property should focus on newbuild homes in order to address the concerns of mortgage lenders. He told a Westminster Legal Policy Forum that while there are a number of lenders who are prepared to lend on commonhold properties “it’s not as common as leasehold and that’s a problem…As a country we know and understand leasehold – both its flaws and positives. It will need government intervention and widespread support to ensure commonhold replaces leasehold [successfully].”

Commonhold Solicitors

To discuss a commonhold scheme, or commonhold conveyancing, please contact our commonhold solicitors on 01225 462871. Alternatively, you can email them or complete the Contact Form at the foot of this page.

BLB Solicitors
Request a Call Back

Recent Articles

  • The advantage of meeting your conveyancer
  • Bank of Mum and Dad: protecting gifted deposit monies
  • New build conveyancing: a guide
  • Selling without an estate agent
  • Types of survey when buying a house

Newsletter Sign-up

* indicates required

Share this article

You may also like...
  • Mar 10th, 2022
    Can I exchange and complete on the same day?
    Read Article
  • Mar 22nd, 2022
    Selling without an estate agent
    Read Article
View All Related Articles
Get in-touch today
Contact Form

Left Column

Right Column

Centre

 
Sending
  • Bristol Solicitors

    0117 905 5308
  • Bath Solicitors

    01225 462871
  • Bradford on Avon Solicitors

    01225 866541
  • Swindon Solicitors

    01793 615011
  • Trowbridge Solicitors

    01225 755656
  • Almondsbury Solicitors

    0117 905 5308
Authorised & Regulated by Solicitors Regulation Authority (No. 636644)
©2022 BLB Solicitors | Terms | Privacy | Legal