Freehold conversions are registered under s.9 of the Act. Like leasehold conversions, they are referred to in the Act as a registration 'with unit-holders'.
This type of conversion may arise when, for example, proprietors of existing freehold properties apply for commonhold status because they have communal facilities such as shared roadways, pathways or services etc., the management of which they wish to formalise. A typical example would be a small gated housing estate.
Conversion to commonhold is possible only where all interested parties agree. To create a commonhold title to the common parts some or all of the existing freehold proprietors may have to give up an area of their title, such as where they own part of the estate road, or they may need to purchase land from a third party to create the common parts. The agreement and co-operation of all affected parties is required in these cases.
As with the other two types of commonhold, the commonhold community statement is used by Land Registry to prepare the necessary registered titles. The existing registered freehold titles within the extent of the commonhold arethen amended to refer to the land as now being part of the commonhold.
Because there are existing unit owners, there is no transitional period with freehold conversions.
The next page looks at how a commonhold can be terminated.
