The commonhold legislation has at last passed into law. But is it an acceptable alternative to conventional freehold or leasehold schemes?

Whether commonhold is used will depend on the market place. There is certainly much interest - and some opposition.

Commonhold is a system of ownership of interdependent properties - that share physical structures or services and amenities: blocks of flats, business parks, mixed use developments of shops and flats.

Commonhold should be considered where one or more units in a commonhold are to be occupied by the owner or let out by him as an investment. A commonhold development is not suitable for a single investor.

Commonhold has many advantages

• Freehold ownership
• The unit-holders can enforce their rights and duties between themselves
• The unit-holders control the running of the commonhold through membership of a commonhold association
• The commonhold documentation is standardised and applies throughout the commonhold - no piles of leases which may or may not say the same thing
• Flexibility

Commonhold is not a universal panacea, and is not appropriate for all circumstances. Expert advice will be needed to reach a decision whether or not to use commonhold, and to prepare the commonhold documents and set the commonhold up.

For more information on commonhold: "Commonhold - not so much flawed, but different" click here

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