This is a question asked of conveyancing solicitors from time to time, and due to the relative scarcity of commonhold, it is not unusual for property lawyers to scratch their heads.
Most people are familiar with the terms freehold and Leasehold. Buyers tend to prefer freehold interests as a lease does not last forever (typically 99 years) and, as such, is seen as a depreciating asset.
In 2002, a new form of tenure called commonhold came into being as part of the Commonhold and Leasehold Reform Act 2002.
This Act was primarily designed to address flats and in particular those that shared "common parts" such as hallways, the roof, the foundations, lifts and so on. Under commonhold, these parts are owned by a commonhold association and the details are decided by the association's memorandum.
The association and its relationship to its members is set out and regulated in the articles of association.
Technically existing blocks can be converted to commonhold. However, this is unusual and the more common route has been to establish a share of freehold structure.
Call Homeward Legal on to find out more about how our conveyancing solicitors can help you to buy a commonhold property. We have experience in even the most unusual of cases and are happy to talk you through the entire process.
Commonhold is rare
Commonhold is rare, very rare, with an estimation of fewer than 50 blocks across England and Wales. The majority of examples tend to have been implemented in new developments.
If you are buying a commonhold property, don't be deterred. Commonhold property does not depreciate towards the end of its lease terms.
Equally important is the removal of any need for landlords giving the commonholders the right of self-determination of their building. This makes it easier for residents to run and make decisions in the interests of their homes as well as deciding how maintenance is carried out.
Homeward Legal's conveyancing solicitors include a commonhold specialist who has looked at the title of a number of commonhold flats.
Call Homeward Legal on to find out more about commonhold properties or any aspect of your purchase conveyancing.