11. Commonhold

The Government has now legislated to allow property developments called ‘Commonhold’

Leaseholders become ‘unit owners’ and own their flats, plus a share of the ground as ONE SINGLE UNIT.

There is NO division of leasehold and freehold.

Flat owners in the rest of the world all enjoy a version of common hold BUT it may be many years before commonhold is the norm in England. In the newest rule book (CLRA 2002) :

1. Existing buildings need every leaseholders’ consent. (100%)

2. There is no requirement to develop commonholds for the future.

3. No end has been set for leasehold developments.

In 1998 The Government said : We see commonhold as the best way to tackle the problems faced by many existing residential leaseholders’.

It also said:
‘The Government believes the leasehold system is fundamentally flawed’
If a product (leasehold) is ‘fundamentally flawed’ why are property developments still allowed with leasehold tenure?
If commonhold is:‘ the best way to tackle the problems faced by many existing leaseholders’

Why have existing leaseholders no way to become part of commonholds without 100% agreement?