Will commonhold finally become the new leasehold?
There are currently three ways that a property can be held. They are freehold,...Back to News and Events
There are currently three ways that a property can be held. They are freehold, leasehold and also the lesser known commonhold. Commonhold is the alternative to a leasehold title.
Commonhold is primarily intended to benefit the occupiers of flats. There is a commonhold association who would deal with the management of the building and common areas. The homeowner would be a member of this. There would still be a freehold title of the building and the individual properties would be issued a separate commonhold title.
It was introduced back in 2004. Unfortunately, it never took hold and builders continued to sell leasehold properties. No-one really knows why this was the case other than the fact that it was new and unknown and the model for it had a few issues. However, with the current view on leasehold properties that both mortgage lenders and buyers have, it could mean that leasehold properties slowly become a thing of the past.
Under the leasehold reforms shortly going through Government Consultation, the government will be looking at how to make the title more attractive to builders and lenders with a view to taking the lead over leasehold properties.
We wait to hear what changes may be afoot in this area later this year.
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