21st July 2025 | Shen Hussein | Residential Real Estate, Property, Commonhold

If you’ve ever owned or thought about buying a flat in England or Wales, you’ve probably come across the leasehold system, and you might have heard a few complaints about it too. But there’s another option out there, and it’s called commonhold.

What is Commonhold?

Commonhold is a different way of owning flats that was introduced in 2004. Instead of buying a flat on a lease that eventually runs out, you own your flat outright, forever! You also automatically become part of a group (called a commonhold association) that looks after shared parts of the building, like the hallways, roof, or garden.

In theory, it gives flat owners more control and avoids some of the common problems with leasehold – like paying expensive ground rent or dealing with difficult freeholders. But despite the idea being around for 20 years, fewer than 20 buildings have actually switched to this system.

Why Haven’t More People Used It?

There are a few reasons:

  • It’s complicated, people often find the rules and legal aspects hard to understand.
  • Developers and freeholders don’t benefit under commonhold, they can’t make money from things like ground rent or service charges, so they don’t push for it.
  • Lenders are cautious, banks aren’t used to lending on commonhold properties, so getting a mortgage could be trickier.

What’s Changing?

The government is now looking to make commonhold the standard way to own a flat, instead of leasehold. This comes after a big report from the Law Commission in 2020, which said the current leasehold system is outdated and often unfair.

A new law, the Leasehold and Commonhold Reform Bill, is expected in late 2025. Ahead of that, a White Paper (a kind of policy plan) has set out some big ideas:

Key Proposals

  • Commonhold as the default: In future, most new flats would be sold as commonhold, not leasehold.
  • Ban on new leasehold flats: Developers wouldn’t be allowed to build new flats under leasehold, except in special cases.
  • More say for flat owners: People living in the building would have more control over matters like maintenance and budgeting.
  • Easier to switch: It would become simpler for existing leasehold blocks to convert to commonhold.

What Could Get in the Way?

There are still a few bumps in the road:

  • Banks might worry about lending for commonhold homes, since it’s unfamiliar territory.
  • Developers might resist if they see it as less profitable.
  • Legal details need fixing, especially when it comes to buildings that mix homes with shops or offices.

Why Does This Matter?

For a lot of flat owners leasehold has long been a source of stress and frustration. Commonhold could offer a fairer and more transparent alternative, where you truly own your home and have a say in how your building is run.

That said, the change won’t happen overnight. It will take time, but it could be the fresh start many homeowners have been waiting for.

At Sherrards Solicitors, we provide expert legal guidance on the evolving reforms, ensuring property owners, investors, and developers are well-prepared for the future of property ownership.

To find out more, contact the Residential Real Estate team here or contact Shen using the details below. 

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