Commonhold

Why has it been introduced?

Commonhold is widely used (with variations) throughout the rest of the world where there is no leasehold system. The system of ownership of land by long leases has many defects:

• a lease is a wasting asset;
• the landlord may retain an inequitable degree of control over the premises; leasehold documentation is not uniform; and
• there is no implied right for covenants to be enforced directly between tenants.

The object of the commonhold is to overcome these problems by vesting control and ownership of the communal facilities in an association owned by the unit-holders and introducing uniformity in the form and content of the documentation.