The Law Commission has published its Consultation Paper on commonhold reform.
Entitled ‘Reinvigorating commonhold: the alternative to leasehold ownership’ the consultation is now open until 10th March 2019.
The government’s recent consultation ‘Tackling unfair practices in the leasehold market‘ raised questions concerning the future of leasehold as a form of residential land tenure in the 21st century. It also indicated that Commonhold should be reviewed as an alternative to the residential leasehold system.
Commonhold has been on the statute books since 2004, when the Commonhold and Leasehold Reform Act 2002 came into force.
The new Consultation Paper details proposals to make commonhold work for homeowners, developers, mortgage lenders and across the wider property sector. Key proposals include ways in which to:
Make it simpler for existing leaseholders to convert to commonhold and gain greater control over their properties
Enable commonhold to be used for larger, mixed-use developments which accommodate not only residential properties but also commercial and leisure facilities
Permit shared ownership leases and other forms of affordable housing to be included within commonhold.
Mark Chick (pictured), ALEP (Association of Leasehold Enfranchisement Practitioners) director and committee member, said: “ALEP welcomes the latest round of consultations concerning commonhold. The topic was widely debated by our members earlier this year and commonhold reform is crucial not only to the leasehold sector, but the wider property sector and will have implications for us all.
“This is a consultation not to be missed and ALEP encourages all members to respond by the deadline in March 2019.”