What is a commonhold flat?

What is a commonhold flat?

What is commonhold? Commonhold is an alternative to the long leasehold system. It allows you to own the freehold of individual flats, houses and non-residential units in a building or on an estate. Unlike leasehold, there is no limit on how long you can own the property for.

Can you get a mortgage on a commonhold flat?

Council of Mortgage Lenders, CML, lists banks lending on commonhold title. Commonhold tenure was introduced in 2002 as a welcome alternative to leasehold but there was very little take up. Under these circumstances, perhaps it is less a surprise that few banks issue mortgages on commonhold, than that any do at all.

Can you convert leasehold to commonhold?

Converting from leasehold to commonhold Existing leaseholders may be able to convert to commonhold. The procedure for converting to commonhold is complex and can be very expensive. It is likely to be most suitable for people who live in large blocks of flats where there is also commercial property (such as offices).

Is commonhold an estate?

Commonhold is a method of ownership of the freehold in a building or an estate. A freehold estate is divided into “units” and “common parts”. The units are typically a flat and owned by a “unit holder” and the common parts, which may include stairways, lifts and outdoor spaces, are owned by a “commonhold association”.

What is the difference between commonhold and freehold?

Each unit-holder owns the freehold of their home, and a commonhold or residents’ association owns and manages the common parts of the property.

What is a Feuhold?

In Scotland, we historically had our own form of property tenure called ‘feuhold’. Now nearly all property is held under a tenure known as ‘Outright or Absolute Ownership’, including apartments and tenements. This is comparable to ‘Freehold’.

What is the difference between commonhold and Freehold?

What is commonhold in land law?

Commonhold is a form of ownership (or tenure) for multi-occupancy developments. Each unit-holder owns the freehold of their home, and a commonhold or residents’ association owns and manages the common parts of the property.

What is commonhold mortgage?

Commonhold is effectively a system of collective freehold ownership of units in a building. The unit holder has a freehold interest in the unit, which the Law Commission states that, unlike a lease, is not a wasting asset. There is no landlord so there is no requirement to pay ground rent.

How do you convert to commonhold?

There are only 2 ways to achieve commonhold. Firstly, when the building is built, the developer may opt to sell it on a commonhold basis (which is extremely rare). Secondly, the building can be converted to commonhold, but only if the freeholder, the leaseholders and all mortgage companies consent to it.

What is freehold leasehold and commonhold?

The terms freehold, leasehold and commonhold are used to describe the legal tenure, or basis of ownership of a property, whether it is a building or a piece of land. This applies mainly to residential property.

Who is the owner of a commonhold flat?

The rest of the building or estate which forms the commonhold is owned and managed jointly by the flat owners (referred to as unit -holders) through a commonhold association. A commonhold can only be created out of freehold land, or a freehold building, and comes into effect when the land is registered at the Land Registry as a commonhold.

What is the framework for a Commonhold property?

The framework is relatively simple. The freehold estate in commonhold land is divided into units and common parts. A unit may be a flat, or it may be used for a business (such as an office or shop), and could include a garage or a parking space. The Land Registry will create a registered title for each unit and one for the common parts.

What is the difference between leasehold and commonhold?

Unlike leasehold, there is no limit on how long you can own the property for. The rest of the building or estate which forms the commonhold is owned and managed jointly by the flat owners (referred to as unit -holders) through a commonhold association.

What happens once the Commonhold is in place?

Once the commonhold is in place, the new law provides a formal framework of the rights and obligations that apply between the unit-holders, and between the unit-holders and the commonhold association. The framework is relatively simple. The freehold estate in commonhold land is divided into units and common parts.