Understanding Commonhold
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Commonhold is a type of property ownership introduced recently in England and Wales through the Commonhold and Leasehold Reform Act 2002, which consists of both units and common parts that enjoy indefinite freehold tenure. The units are individual freehold properties, such as flats, offices and shops, whereby the owners are referred to as unit-holders. The common parts are interpreted as any part of a Commonhold development which is not a unit, including but not limited to shared facilities such as the roof, stairs and landings. The common parts are owned and managed by a limited company called the Commonhold Association of which membership is restricted to unit-holders in a democratic form of governance with each member having a vote pertaining to any issues arising such as improvements, repairs, service charges and so on with decisions settled by a majority. The Commonhold Community Statement is the directive by which the Commonhold Association manages the Commonhold and defines the extent of the Commonhold properties, rights and obligations of the Association and it's unit-holders and conduct for dispute resolutions. Commonhold is a comparable replacement to long leasehold tenures of flats and other independent properties except that Commonhold does not lose its value over time in the same way as leasehold is subject to diminishing value over time and there is no Landlord to contend with. On the contrary, the Commonhold will require greater involvement of time and obligations such as maintenance and insurance as supposed to the simpler leasehold arrangement of payment for service charges. |
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Page last updated: 15/02/2012 * Disclaimer: All article content is the opinion of the author and does not represent the views of RenovationFinance.co.uk. In all instances, you are advised to seek independent advice. |
