Issue 33

My question to Nicolas Shulman is whether commonhold has any advantage for the individual leaseholder over our situation and whether there is any practical difference in the relationship between the flat owners and the company?
Roger Sturge, Secretary, Roman Harbour Limited, Bristol.

Our expert reply:
Under commonhold each flat would revert to an individual freehold title (although of little practical difference to the 999-year leases in the Roman Harbour situation) and all unit-owners automatically would have membership of the Commonhold Association. While this is not much different to the present situation there would be a substantial change to the individual flat-owner’s rights.

None of the existing leasehold laws apply to commonhold, so no requirement for S20 consultation, no right-to-manage or right to acquire the freehold and no right to challenge a service charge at the LVT. All decisions in relation to management and budgets, including the commonohld assessment (the service charge) are decided democratically by meetings of the Commonhold Association and, in this context, the Government felt that the statutory protections for leaseholders are not necessary.

In the Roman Harbour situation, management would be much simpler through commonhold.
Peter Haler, LEASE