Commonhold as an option to Leasehold
The Law Society have responded to the Law Commissions consultation with respect to "Reinvigorating commonhold: the alternative to leasehold ownership."
In brief Commonhold is a form of tenure that runs alongside freehold and leasehold. Since it's introduction in 2002 fewer than 20 Commonholds have been created.
The Law Society is hoping that Commonhold will become attractive to homeowners, developers and mortgage lenders.
The Government has asked the Law Commission to provide alternative options to owning property and the consultation paper includes;
- Enabling Commonhold matters to be used for larger developments that include commercial elements.
- Make it possible to allow shared ownership leases to be included in Commonhold matters.
- Provide reassurance to Mortgage Lenders to free up finance.
- Create a scenario where Commonholders are able to deal with property developers and negotiate contracts.
This consultation is a part of the Law Commission's review of leasehold and commonhold land. As such the Law Society responded to the Ministry of Housing, Communities and Local Government consultation on implementing reforms to the leasehold system.
The presiding Law Society view appears to be, "While long leasehold tenure for residential property remains available, there is no incentive for developers to try out any broadly untried new system, nor incentive for the market (purchase or funding) to accept one."
At present whilst Commonhold is being seen as an attractive vehicle to providing "co-ownership" the mechanism needs further adoption to make it a viable alternative to Leasehold ownership.
To discuss your conveyancing requirements in further detail please do not hesitate to contact us.
E&K Solicitors
Rusholme
0161 256 3915
Get in touch
with your query or requirements
Rusholme Solicitors
From our offices in Rusholme, our experienced solicitors can assist with the following areas of law;
Conveyancing, crime, licensing advice, motoring offences, personal injury claims, probate, Wills, and more.
Speak to our team for more information
Contact
45 Wilmslow Road,
Rusholme,
Manchester,
M14 5TB
0161 256 3915
Rusholme,
Manchester,
M14 5TB
0161 256 3915