The Commonhold White Paper was published
today, 3 March 2025. It contains the Government's proposals for
legislating that all new flats, subject to certain unspecified
exemptions, will be offered for sale under the commonhold model
instead of the current leasehold model. This article will summarise
the White Paper and explore its potential impact on the real estate
sector in England and Wales.
WHAT IS COMMONHOLD?
In a commonhold building, each owner owns the freehold of their
unit. They are also the members of the commonhold association (the
"CA"), which owns the freehold of the
common parts of the building (such as the reception, roof, lift,
corridors and garden) and is obliged to organise the repair,
maintenance and insurance of these areas.