Introduction What is commonhold Why commonhold has been introduced Essential Documents Structure New Developments - Transitional period Leasehold conversions

Freehold conversions Termination Amendments or additions Registration at Land Registry - Forms and Fees - Supporting documents Consents Approval of the commonhold plan

Preliminary services items - Searches of index maps (SIMs) - Official copies & searches - Outline applications Summary Glossary

Essential Documents

Commonhold must be created out of a registered absolute freehold title. It cannot exist in unregistered land. If the freehold land is not already registered at Land Registry, then an application to register it must be made.

The other essential precondition for the creation of a commonhold is the need to create a commonhold association.

Commonhold Association

A commonhold association is a private company incorporated under the Companies Act 1985, and limited by guarantee rather than by shares.

The association is responsible for the upkeep of the common parts and levies a service charge to meet its expenses. The conduct of the association's meetings and general business is governed by strict regulation. Unit holders are members of the association and have voting rights at meetings.

Three documents form the constitution of the commonhold:

• The memorandum of association of the commonhold association;
• The articles of association of the commonhold association; and
• The commonhold community statement.

The memorandum and articles of association are similar to those of any limited company, and the commonhold community statement sets out the management framework and the rules of the association.

The commonhold community statement also contains a definition (by plan) of the extent of the commonhold and the extent of the units, and is used by Land Registry to prepare the title plans for the common parts and the units.

The next page looks at how commonhold is structured.