Commonhold in United Kingdom

Definition of Commonhold

In accordance with the work A Dictionary of Law, this is a description of Commonhold :

A third way of owning land, in addition to *freehold and *leasehold, that is expected to be introduced into England and Wales in accordance with the Commonhold and Leasehold Reform Bill. It is intended for developments in which individual properties, such as flats, houses, or shops, are owned and occupied by separate persons, but there are common parts, such as stairways and walkways, that need to remain in central ownership and to be maintained. Previously, such properties were usually held under long leases, but this had proved unsatisfactory. Each separate property in a commonhold development will be a unit; the owner will be a unit-holder. The body owning the common parts will be the commonhold association, a private company limited by guarantee. Each unit-holder will be a member of that company. The company membership will be limited to the unit-holders, and the memorandum and articles of the company will be prescribed by the Lord Chancellor. The commonhold association will also need to create a Commonhold Community Statement (CCS) setting out the rules and regulations of the particular community. The commonhold association with its common parts and all the associated units will be registered at the Land Registry. It will be possible for leasehold developments to convert to commonhold, but only by the consent of all parties.