Commonhold is a property term that’s been in the press recently. If the current Government gets its way, this method of owning a flat or apartment is something we could see a lot more off. Ahead of a more widespread adoption, we have answered the most popular commonhold questions.
Q. What is commonhold?
A. Commonhold is an alternative to the leasehold ownership of flats and other properties that share communal areas or services. Instead of homeowners being leaseholders who are, ultimately, at the behest of the freeholder, they are freeholders of their own unit who come together to co-own and co-manage a building’s communal parts.
Q. Is commonhold a new concept?
A. Relatively new. It was introduced in England and Wales in 2002 through the Commonhold and Leasehold Reform Act.
Q. How popular is commonhold in England & Wales?
A. A recent article on commonhold in The Guardian claimed only around 20 commonhold developments have been created since 2002 when it was introduced. Part of the problem has been mortgage lenders’ reluctance to loan on flats where the ownership structure took a commonhold path.
Q. What should Scottish flat buyers know?
A. There is already a different approach to flat ownership in Scotland. The country has developed a system where most flat purchasers acquire a ‘heritable interest’ or ‘ownership’ in an apartment and a share in the common parts of a building. This is the equivalent of commonhold. Even many ultra-long leases were converted to heritable titles thanks to the introduction of the Long Leases (Scotland) Act 2012).
Q. Are we going to see more commonhold flats?
A. Yes, as the Government wants to phase out the creation of leasehold flats. Its legislation proposes a new law that ensures all new-build flats are created exclusively on a commonhold basis. The Commonhold White Paper: The proposed new commonhold model for homeownership in England and Wales was published in March 2025, and we expect to see a draft Leasehold and Commonhold Reform Bill in the second half of this year.
Q. What will be expected of me if I buy a commonhold flat?
A. All commonholders are known as ‘unit owners’ and each automatically becomes a member of the commonhold association. The association owns and manages the common parts of the building or estate. It decides how much each unit owner needs to contribute to the maintenance, improvement and repair of the building’s common parts.
For maximum control, members of the commonhold association can personally research and buy insurance, find trades, book repairs, decide to make alterations and respond to emergencies. Alternatively, the commonhold association can choose to appoint a private company to manage the building on their behalf.
While membership to a commonhold association is involuntary when you become a commonholder, there is no legal obligation to participate in the association’s running.
Q. Can an existing leaseholder become a commonholder?
A. It is already possible to convert from leaseholder status to commonholder but there are some hoops to jump through. It requires the unanimous consent of the freeholder, all other leaseholders in the building and their lenders.
Alternatively, a group of leaseholders can collectively enfranchise (that’s when leaseholders collectively buy the freehold of a residential building) but at least 50% of the flats must participate for this to be a valid action.
If adopted into law, the Government’s Leasehold and Commonhold Reform Bill would make it easier for current leaseholders to switch to commonhold or collectively enfranchise.
If you are thinking of buying a new build flat on a leasehold basis, or if you’re already a leaseholder and would like to know more about commonhold, please get in touch.
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