How Leaseholders Will Benefit from Commonhold Reform

1. Full Ownership, No More Lease Expiry
   Unlike leasehold, where homeowners effectively ‘rent’ their property for a fixed term, commonhold allows leaseholders to own their homes outright, with no risk of diminishing lease terms.

2. No More Ground Rents and Excessive Service Charges
   Under commonhold, there are no ground rents, and service charges are controlled by residents rather than external freeholders, ensuring better cost transparency and fairness.

3. Greater Control Over Property Management
   Commonhold enables homeowners to collectively manage their building through a residents' association, rather than being reliant on third-party freeholders or developers who may not act in their best interests.

4. Easier and More Affordable Selling
   Leasehold properties often require costly lease extensions, which can complicate sales. Commonhold eliminates this burden, making it easier for homeowners to sell their property without restrictions or additional costs.

5. A More Transparent and Fair System
   Commonhold removes the complex legal issues associated with leasehold, ensuring property ownership is straightforward and free from unfair contracts or hidden fees.

When Will These Changes Happen?

The government has committed to implementing leasehold reform as part of its broader housing strategy. While a precise timeline remains uncertain, significant legislative changes could begin within the next few years, with transitional plans to support leaseholders shifting to the new system.

What Can Leaseholders Do Now?

While the reforms are in progress, leaseholders can take proactive steps by:

• Understanding their current lease terms and any potential future costs.

• Exploring the right to collective enfranchisement (buying the freehold) where applicable.

• Preparing for potential changes by staying informed and engaging with professional property managers who can guide them through the transition.

At Placekeeper Management, we are committed to supporting leaseholders through these changes. Whether you need guidance on your lease, managing your building more effectively, or transitioning towards commonhold, our expert team is here to help.

Trevor Adey, Director, Placekeeper Management Limited