Main project: Residential leasehold and commonhold
Current project status
The current status of this project is: Consultation.
List of project stages:
- Analysis of responses
- Initiation: Could include discussing scope and terms of reference with lead Government Department
- Pre-consultation: Could include approaching interest groups and specialists, producing scoping and issues papers, finalising terms of project
- Consultation: Likely to include consultation events and paper, making provisional proposals for comment
- Policy development: Will include analysis of consultation responses. Could include further issues papers and consultation on draft Bill
- Reported: Usually recommendations for law reform but can be advice to government, scoping report or other recommendations
We have published our Consultation Paper on commonhold reform: “Reinvigorating commonhold: the alternative to leasehold ownership”. The consultation period is open until 10 March 2019.
We previously published a Call for Evidence on commonhold on 22 February 2018.
Background documents that are referred to in the Consultation Paper can be found here.
We explain how you can respond to our Consultation Paper below.
Our commonhold project looks at aspects of the law of commonhold which may be preventing its uptake.
Responses to our Call for Evidence highlighted a number of issues within the current law of commonhold which may be making commonhold unattractive to homeowners and across the wider property sector.
Terms of reference
Government has asked us to propose reforms to reinvigorate commonhold as a workable alternative to leasehold, for both existing and new homes.
Our full terms of reference are available here.
We have published our Consultation Paper on commonhold reform: “Reinvigorating commonhold: the alternative to leasehold ownership”. In it, we make provisional proposals to make commonhold work for homeowners, developers, mortgage lenders and across the wider property sector.
In particular, the Paper includes proposals which would:
- Enable commonhold to be used for larger, mixed-use developments which accommodate not only residential properties but also shops, restaurants and leisure facilities.
- Allow shared ownership leases and other forms of affordable housing to be included within commonhold.
- Make it easier for existing leaseholders to convert to commonhold and gain greater control over their properties.
- Improve mortgage lenders’ confidence in commonhold to increase the choice of financing available for home buyers.
- Provide homeowners with a greater say in how the costs of running their commonhold are met.
- Enable homeowners to end unattractive long-term contracts imposed by developers.
Commonhold consultation events
We are holding a number of consultation events across England and Wales. At these events, we will discuss some of our proposals and ask for your views. We encourage all those interested in commonhold to attend these events and help shape our final recommendations for reform. We are holding two types of event:
- We are holding events aimed at existing leaseholders and future homeowners. These events will provide an introduction to commonhold and the Right to Manage, followed by a brief overview of key areas of reform which are likely to be of particular interest to leaseholders. Details of these events are available here.
- We are also holding events aimed at professionals. These events will focus in greater depth on the technical details of a selection of our provisional proposals for reform. The areas of reform considered are likely to be of particular interest to professionals in the legal and property sectors. Details of these events are available here.
Our consultation is now open and closes on 10 March 2019.
Comments may be sent using the online form. Where possible, it would be helpful if this form was used.
Alternatively, comments may be sent:
- By email to firstname.lastname@example.org.
- By post to Commonhold Team, Law Commission, 1st Floor, Tower, 52 Queen’s Anne Gate, London, SW1H 9AG.
(If you send your comments by post, it would be helpful if, whenever possible, you could also send them electronically.)
We will publish our final report, and assist with the implementation of our recommendations, in 2019.
By email to: email@example.com
Area of law
Property, family and trust law
Professor Nicholas Hopkins