The Law Commission has today published its eagerly awaited Consultation Paper on commonhold reform. Titled ‘Reinvigorating commonhold: the alternative to leasehold ownership’ the consultation is now open until 10th March 2019.
The government’s recent consultation 'Tackling unfair practices in the leasehold market' raised many questions concerning the future of leasehold as a form of residential land tenure in the 21st Century. It also indicated that Commonhold should be reviewed as an alternative to the residential leasehold system. Commonhold has been on the statute books since 2004, when the Commonhold and Leasehold Reform Act 2002 came into force.
The Consultation Paper published today details proposals to make commonhold work for homeowners, developers, mortgage lenders and across the wider property sector. Key proposals include ways in which to:
Make it simpler for existing leaseholders to convert to commonhold and gain greater control over their properties.
Enable commonhold to be used for larger, mixed-use developments which accommodate not only residential properties but also commercial and leisure facilities.
Permit shared ownership leases and other forms of affordable housing to be included within commonhold.
Last February, on the day the Law Commission published its Call for Evidence on Commonhold, ALEP held is first Lecture to debate the subject. The Lecture saw more than 150 professionals attend to learn more about and discuss Commonhold.
Mark Chick, ALEP Director and Committee member, said: “ALEP welcomes the latest round of consultations concerning Commonhold. The topic was widely debated by our members earlier this year and commonhold reform is crucial not only to the leasehold sector, but the wider property sector and will have implications for us all.
"This is a consultation not to be missed and ALEP encourages all members to respond by the deadline in March 2019.”
For more information on the consultation please click here.