Flat owners in the rest of the world all enjoy a version of common hold
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 commonhold.
BUT it may be many years before commonhold is the norm in England. In the newest rule book (CLRA 2002):
- Existing buildings need every leaseholders’ consent. (100%)
- There is no requirement to develop commonholds for the future.
- 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?
There is no justification for the government to continue to support leasehold development, and to multiply leasehold problems now that commonhold tenure is available.