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

What is commonhold

There are two main types of estate in land in England and Wales: freehold and leasehold. Commonhold is not a new estate, but a new kind of freehold ownership introduced into England and Wales by the Act, which was given Royal Assent on 1st May 2002.

Commonhold combines freehold ownership of a unit in a development with membership of a commonhold association. The association (and consequently the unit holders) owns and is responsible for the management and upkeep of the common parts of the development. It is  an alternative to long leasehold ownership.

'Units' are the individual properties within the estate or building, such as a flat or industrial unit. The 'common parts' are the remainder of the building or estate, (such as the fabric of the building or the estate road etc.) not forming part of the units.

Commonhold is already in use in other parts of the world, where it is known by different names:

• Condominium and Community Ownership in Canada and the USA
• Law of Tenement in Scotland and
• Unit and Strata Titles in Australia and New Zealand

A commonhold will continue unless it is ended under provisions contained in the Act. This is covered in more detail later in the guide.

The next page looks at why commonhold has been introduced.