The government recently published a draft consultation paper on Commonhold and Leasehold Reform which will have an impact on ownership and management of buildings.
Commonhold is a completely new way of holding land, which sits alongside freehold and leasehold. Its essence is that the Commonhold owner owns two interests: the unit, say a flat or an industrial unit, which he owns individually, and the common parts which he owns and manages collectively through a Commonhold Association. Commonhold is intended to apply to new and existing residential and commercial property. Exisiting properties can be converted to Commonhold, but this requires the consent of 100% of the occupiers. Rack rented commercial properties cannot be converted. A residential Commonhold can only be granted out of a freehold although this restriction may not apply to commercial property.
