Overview of commonhold Structure

Structure

A commonhold must consist of both the common parts and at least two units. The units can be entirely separate units, linked units or units contained within a single structure. The commonhold can intheory be any size.

The commonhold cannot comprise:

• a flying freehold
• agricultural land
• a contingent title (i.e. a title that is liable under certain statutes to revert to someone other than the registered proprietor i.e. some disused school sites).

Commonhold can be created for either residential or commercial use, or a combination of both. There can be more than one piece of land within the commonhold, such as on opposite sides of the road, but if there are no mutual obligations or shared facilities between the two pieces of land then a single commonhold would not be appropriate.

Once operative, a commonhold will continue as such unless and until ended in accordance with the Act.

Commonhold can arise out of three situations:

• new developments
• leasehold conversions
• freehold conversions

The next page to looks at these in more detail.