The government has issued new guidance for people wishing to form a commonhold.
The Commonhold Guidance on the drafting of a Commonhold Community Statement including Specimen Local Rules appears on website of the the Department of Constitutional Affairs.
It contains specimen provisions that can be included in a commonhold community statement (CCS) – which governs all parties to the commonhold together with an example of a completed document.
Copies of all CCSs will be held by Land Registry once the commonhold has been registered. They will be available for public inspection at a fee.
Land law minister David Lammy maintained that one of the aims of commonhold is to make the managing of buildings in multiple ownership easier to understand.
He said: “Rather than different leases for each leaseholder, with commonhold there is a single document that will apply to everyone in the commonhold.
“The commonhold community statement is written in clear English language and sets out how the community is to be run and its buildings and other assets are looked after. It makes the rights and responsibilities of those involved in commonhold easier to understand.”
The minister added that the new guidance will “encourage greater uniformity in the drafting of those parts of a commonhold community statement that are not prescribed in legislation”.
“This will make these documents more standardised and easier to use,” he said.
Commonhold, which is an alternative to long leasehold ownership, is a new way of managing homes and business properties that are in multiple ownership.
The Commonhold and Leasehold Reform Act received Royal Assent on 1 May 2002. In July 2004, regulations were laid in parliament to allow commonhold to come into effect on 27 September 2004.
References: EGi Legal News 06/12/2004
