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Exploring Commonhold: The Benefits, Challenges and What it Means For Property Ownership

Anushka Nicholas, Head of the Leasehold Enfranchisement team at Blacks Solicitors, comments

Since its introduction in 2004, commonhold has been met with resistance, with only a small number of developments adopting the framework, compared to millions of leasehold properties. Anushka Nicholas, head of the leasehold enfranchisement team at Blacks Solicitors, shares insight on what commonhold ownership is, how the legislation differentiates from leaseholds and the challenges and benefits of embracing this framework.

What is commonhold ownership?
Commonhold ownership allows individuals to own their properties (e.g. flats or houses) outright, while also sharing ownership of common areas and facilities, such as gardens, hallways and parking spaces. Unlike leasehold ownership, where the leaseholder rents the property from a landlord for a specified period, commonhold grants home owners permanent ownership.

How does a commonhold arrangement work?
In a commonhold arrangement, homeowners are known as unit-holders and form a Commonhold Association (CA), which assumes responsibility for managing the building. The CA’s membership is comprised of unit-holders within the commonhold and it must be registered as a limited liability company, with the unit-holders making decisions regarding maintenance, repairs and insurance. 

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