My publisher would not believe me when I told him that there are more books on Commonhold than actual Commonhold units in the country. It is with some irony that I added to that number when I set out a chapter on Commonhold in my book about Lease Extensions and Enfranchisement (available in all good book stores and online).
Commonhold was clearly a "hipster" scheme dreamed up by someone with in Tony Blair's administration that had too much time on their hands. It was envisaged as some sort of solution to the perceived problem of leasehold. Let me be clear, leasehold as a form of title is not the issue, what goes and can be allowed to go into a lease are the causes for concern.
Until the likes of mortgage lenders and property developers are convinced that Commonhold is something they should be interested in, no one will use it. In my opinion, it would be better to reform the small issues that exist with leasehold.
For all your Freehold, Leasehold and (dare I say it) Commonhold queries, contact a member of the Dutton Gregory teams of Property experts.
Mortgage lenders are reluctant to lend money to homebuyers in a commonhold set-up over insolvency fears, says the Law Commission, which has been tasked by the government to find ways to make the leasehold alternative work. Commonhold allows a person to own a freehold flat, and be a member of the company which owns and manages the shared areas and structure of the building. However, it has struggled to gain traction since it was introduced in 2002 - there are only 150 commonhold units in England and Wales.