‘Commonhold’ is a form of property ownership for multi-occupancy properties introduced in 2004 in England and Wales. It enables collective ownership of the freehold of property as an alternative to long leaseholds.
A commonhold consists of:
- Individual ‘units’, such as flats, commercial units or individual buildings within a property, the freehold of which is owned by unit-holders.
- ‘Common parts’, such as stairs and roofs, consisting of anything that is part of the commonhold property but is not a unit. These common parts are owned and managed by the Commonhold Association (CA).
The Commonhold Association is a limited company, members of which must be unit-holders, although unit-holders do not have to become members. It cannot distribute profits which must be ploughed back into the company.
The Commonhold Association manages the commonhold according to an agreed Commonhold Community Statement (CCS) for the entire property, which sets out the rights and obligations of the parties, the extent of the commonhold, charges, the allocation of votes, and dispute resolution procedures.
The Commonhold Regulations 2004 which regulate the operation of commonholds also include a standard memorandum of association, articles of association and Commonhold Community Statement necessary to create a Commonhold Association.
On new-build devleopments, the developer is likely to set up the Commonhold Association in the first instance. Existing leases can be converted into a commonhold, but this requires the agreement of the leaseholders, landlord and any lenders, which may be difficult to achieve.
The advantages of a commonhold include:
- Unit-holders are able to own the freehold of their unit, rather than a leasehold which devalues during the lease and ultimately expires.
- There is no landlord and so conflicting interests should be reduced.
- Charges should more closely reflect costs.
- There is a common agreement between all the unit holders.
However the unit-holders have greater responsibilities and may wish to appoint a professional management company.
Commonhold properties are analogous to condominiums in North America.
 Related articles on Designing Buildings Wiki
- Break clauses in leases.
- Buy-to-let mortgage.
- Dilapidations protocol.
- Housing tenure.
- Leasehold covenants.
- Leasehold enfranchisement.
- Lease negotiations.
- Meanwhile use.
- Property guardianship.
- Sample retail lease.
- Scott schedule.
- Shared ownership.
- Short term lets.
- Vacant possession.
- What is a mortgage?
 External references
Featured articles and news
An Arc de Triomphe for the late-20th century, the La Grande Arche of Paris.
Richard Hayward of Legrand asks whether technology could help developers meet the needs of an increasingly diverse population.
Thomas Heatherwick's ambitious steel structure begins construction.
The principles, practice and formwork of one of the most important components of modern architecture.
New report claims that inappropriate standards and regulations are holding back the use of composites.
The global smart homes and smart light commercial market will grow fastest in the UK.
Have a look at our article explaining the different types of construction contractor.
Futurist Thomas Frey explores the concept of Disposable Housing - could it be a reality sooner than we imagine?
ICE to host new exhibition offering a window onto the civil engineering achievements beneath our feet.
Do you know all the various types of defects in brickwork?
US museum reveals plans for an installation made entirely of paper tubes.
Review of a book looking at how contemporary architecture found its expression within neoliberal capitalism.
The Great Mosque of Djenne, the largest mud-brick building in the world.
Amanda Clack, RICS President offers recommendations to government on Brexit and the construction skills shortage.