Commonhold, an alternative to long leasehold ownership, moved a step closer on 16 July, when the Commonhold Regulations 2004 were laid before parliament.
Part 1 of the Commonhold and Leasehold Reform Act 2002 (CLRA) is expected to come into force on 27 September.
The CLRA, together with the regulations, provides the framework for a new form of tenure in England and Wales, enabling owners of interdependent freehold properties such as flats, shops or offices to have an interest in what will be known as a commonhold association. A limited company, the association will own and manage the common parts: stairs, halls or grounds of the building or development in which the owners live or work.
It will be responsible for the management of the common parts in accordance with the rules set out in the commonhold community statement for the commonhold in question. A copy of this document, prescribed by a standard form, will be held and made publicly available at the Land Registry.
Land law minister David Lammy said: “Commonhold will provide a viable means of owning freehold flats and other interdependent premises.
“It will give people more choice by allowing them to own and manage their properties in different ways… [and] it will… apply equally to residential and commercial property.”
For further information on the Commonhold Regulations 2004, see http://www.dca.gov.uk/legist/commholdone.htm.
