On May 16th News on the Block hosted a conference on the subject of commonhold. Speakers included Gerry Fox of Peverel OM Ltd, Peter Haler of LEASE, Paul Hughes representing the Ministry of Justice and James Driscoll of Trowers & Hamlins.

Commonhold has not been the panacea many hoped for but a consultation paper from the Ministry of Justice due soon will put the subject back in the public eye. The conference was organised to discuss the issues surrounding commonhold; why it has been poorly received by developers and to understand how it may become a viable option.
Gerry Fox of Peverel OM Ltd commented on the implications of managing a commonhold development: “Commonhold enables the sale of a flat on a freehold basis and it also enables management to still be adequately provided for. It should have marketing advantages; however, the loss of ground rent income needs to be taken into account. Some flaws in the legislation need to be corrected before it is suitable for use, except in basic developments. It is understood the Government intends to tackle these problems, although timing is uncertain.” James Driscoll explained the legal ramifications, and informed delegates: “The commonhold law allows for freehold ownership of units managed by a company made up of a Board of Directors, whose members are unit owners.” More than 70 property professionals and press attended the event, which concluded with a networking event.

For more information about commonhold go to LEASE’s website at
www.lease-advice.org.