Commonhold
Encyclopedia
Commonhold is a system of property ownership in England
and Wales
. It involves the indefinite freehold tenure of part of a multi-occupancy building (typically a flat
) with shared ownership of and responsibility for common areas and services. It has features of the strata title
and the condominium
systems, which exist in Australia
and the United States
respectively. It was introduced by the Commonhold and Leasehold Reform Act 2002
as an alternative to leasehold, and was the first new type of legal estate to be introduced in English law
since 1925.
An important difference between commonhold and leaseholds is that commonholds don't depreciate
in value in the same way that leaseholds do towards the end of their lease terms.
In the years since the 2002 Act became law, only a handful of commonholds have been registered whilst hundreds of thousands of long leases have been granted during the same period. As of 3 June 2009, there were 12 commonhold residential developments comprising 97 units in England and one commonhold residential development, comprising 30 units, in Wales.
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and Wales
Wales
Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...
. It involves the indefinite freehold tenure of part of a multi-occupancy building (typically a flat
Apartment
An apartment or flat is a self-contained housing unit that occupies only part of a building...
) with shared ownership of and responsibility for common areas and services. It has features of the strata title
Strata title
Strata title is a form of ownership devised for multi-level apartment blocks and horizontal subdivisions with shared areas. The 'strata' part of the term refers to apartments being on different levels, or "strata"....
and the condominium
Condominium
A condominium, or condo, is the form of housing tenure and other real property where a specified part of a piece of real estate is individually owned while use of and access to common facilities in the piece such as hallways, heating system, elevators, exterior areas is executed under legal rights...
systems, which exist in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
respectively. It was introduced by the Commonhold and Leasehold Reform Act 2002
Commonhold and Leasehold Reform Act 2002
The Commonhold and Leasehold Reform Act 2002 is an Act of the Parliament of the United Kingdom. It introduced commonholds, a new way of owning land similar to condominiums, into English and Welsh law.-External links:...
as an alternative to leasehold, and was the first new type of legal estate to be introduced in English law
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
since 1925.
An important difference between commonhold and leaseholds is that commonholds don't depreciate
Depreciation
Depreciation refers to two very different but related concepts:# the decrease in value of assets , and# the allocation of the cost of assets to periods in which the assets are used ....
in value in the same way that leaseholds do towards the end of their lease terms.
In the years since the 2002 Act became law, only a handful of commonholds have been registered whilst hundreds of thousands of long leases have been granted during the same period. As of 3 June 2009, there were 12 commonhold residential developments comprising 97 units in England and one commonhold residential development, comprising 30 units, in Wales.
External links
- Commonhold - what it is and how it works - the British Government's Leasehold Advisory Service