Leasehold conversions differ from new developments in that they usually already have unit holders, i.e. existing leaseholders. Leasehold conversions are registered under s.9 of the Act and are referred to in the Act as a registration 'with unit-holders'.
Conversion to commonhold is possible only with the agreement of the landlord (the freeholder) and all parties who have an interest in the property, including lenders. On conversion to commonhold, all existing leases are extinguished under s.9(3)(f) of the Act.
Once the conversion has been agreed, the commonhold association is immediately registered as the proprietor of the common parts, and the unit holders become proprietors of their respective units, but now with freehold title. The registered leasehold titles are closed.
Leasehold conversions can be combined with freehold conversions when a mixture of the two types of property (leasehold and freehold) combine to form a new commonhold. In these cases the requirements for each conversion have to be met in respect of the respective properties.
The extent of the common parts and the units is taken from the commonhold community statement and the title plans are prepared for each.
Because there are already unit holders, there is no transitional period with a leasehold conversion.
