What is Commonhold?

What is Commonhold?

Published 2nd July By Jennie Fundell
minute read
As part of Labour’s 2024 election manifesto, they stated they would “ban leasehold on new flats & ensure commonhold is the default tenure”. So, what is commonhold? 

First introduced in England in 2002, it is an alternative to leasehold ownership of flats and other properties that share communal areas.  Instead of owning property as a leasehold for a fixed period of time, with commonhold you own your property as a freehold indefinitely.  With commonhold, you and other owners have a say in how your building is managed, including the costs and responsibilities that come with this. This isn’t just for newly built properties, if you own a leasehold property in a shared building, it may be possible for you and the other leaseholders in the building to convert the building to commonhold.

So, how is a commonhold building managed?
  • When you buy a property, such as a flat, in a commonhold, you are buying a ‘unit’ and you will become a ‘unit owner’.
  • All unit owners are entitled to become a member of the commonhold association, which owns and manages the common parts of the building or estate. Generally common parts will include the structural and external elements of a building, as well as shared areas (e.g. external walls, roof, stairs and lifts).
  • The commonhold association will have at least two directors - these can be unit owners like you, or external professionals can be employed.
  • The directors of the commonhold association decide how much money unit owners will need to contribute to cover the costs of repairing and maintaining the commonhold.
  • The directors of the commonhold association can also decide to manage the building themselves or appoint a managing agent to manage the building on their behalf.
  • As a unit owner you have the opportunity to participate in the commonhold association and to vote on decisions like who to appoint as a director and whether to make building improvements, such as vehicle charging points, for example.
  • Like other companies, the commonhold association must have “articles of association” which govern how it operates.
For further reading around this subject visit the gov.uk

If you need help with the management of your commonhold or Commonhold Community Statement (CCS), our expert Block Management team are on hand to assist.  

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