Archived News

Commonhold

26 August 2004

The biggest change in property ownership, for half a century, is upon us.

By the end of the year ‘Commonhold’ will be introduced and, with it, a new form of ownership.

Commonhold may apply to any area of land that is freehold and/or leasehold and is designed to give residence of a commonhold estate more control over its management and ownership.

A commonhold estate will be owned by its individual plot owners (each of whom will be registered with freehold estate in commonhold land in respect of their individual plot) and a Commonhold Association (this will own all common parts, such as estate roads). The commonhold association will be limited by guarantee and owned by the owners of each and every plot within the Commonhold estate.

Commonhold will not be restricted to residential property and a commonhold estate may consist of both residential and commercial properties.

The new legislation giving effect to Commonhold is also changing the rules relating to enfranchisement and imposes new rules relating to service charges and management of residential property, of which landlords should be aware.

If you would like to find out more about Commonhold contact Justin Neal on 01753 737064 or e-mail jneal@hclaw.co.uk