Business, Legal & Accounting Glossary
The freehold tenure of part of a multioccupancy building (typically a flat) with shared responsibility for common services.
England and Wales law The freehold tenure of part of a multi-occupancy building (typically a flat) with shared responsibility for common services.
The Commonhold and Leasehold Reform Act 2002 (the Act) introduced a new form of land ownership in England and Wales. The Act, together with the Commonhold Regulations 2004 made under it, provides the legal framework.
Commonhold, which came into effect on 27 September 2004 is a new way of owning interdependent freehold properties, such as flats, shops and offices. It is an alternative to long leasehold ownership.
A commonhold consists of individually owned but interdependent freehold properties (known as units) and common parts. In a block of flats, for example, each flat would typically be a unit and the rest of the building, including the structure and exterior of the block, the stairs, hallway and grounds, would be common parts. Each unit is owned individually by a unit-holder. The common parts are owned and managed by a commonhold association, which is a limited company, of which only the unit-holders may be members.
The members will have direct ownership of the unit they own and an interest in the ownership and management of the common parts through membership of the commonhold association.
A commonhold can only be created out of registered land and must itself be registered at Land Registry. Applications for registration must be made in accordance with the Act and The Commonhold (Land Registration) Rules 2004.
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This glossary post was last updated: 15th February, 2020 | 0 Views.