Choosing commonhold means understanding the commitment

Considering whether commonhold is the right option should begin with a question of what the future role will be.

The appeal of a home that does not have a depreciating lease has been widely publicised. But ownership of a flat also means sharing a building, and commonhold brings that shared responsibility into sharper focus.

The government’s draft Commonhold and Leasehold Reform Bill, published in January 2026, sets out a proposed new framework. A Bill is expected to follow in the current parliamentary session, with introduction anticipated before Christmas. The details may change during the legislative process and the timing of implementation remains uncertain. Buyers, landlords, agents and lenders will nevertheless need to prepare for a market in which commonhold and leasehold coexist.

For a buyer, commonhold means owning a unit on a freehold basis and becoming a member of the commonhold association. The association owns and manages the common parts and the commonhold community statement sets out the rights and obligations governing the building. This is very different to owning a lease for a fixed term under a freeholder.

The attraction is not difficult to understand. An owner can have a direct say in how the building is run, and there is no lease term to extend. But that does not mean ownership without rules, contributions or difficult decisions. The roof will still need repairing, the building will still need insurance and owners will still have to fund the work.

What should a buyer ask?

Rather than asking only whether commonhold is cheaper, a buyer should ask how the association is run and what financial commitments come with the property. What are the regular contributions? What is held in reserve? Are significant repairs expected? Who manages the building and how are decisions made? A well-run association should be able to help a prospective buyer and their conveyancer understand the position.

A healthy reserve fund is not evidence that ownership is unnecessarily expensive. Regular contributions towards future work can reduce the need to find a substantial sum at short notice. Equally, a low current contribution is not necessarily a bargain if the building has neglected maintenance or has made inadequate provision for future costs.

Buyers should also read the rules that apply to their unit. Alterations, use of communal areas and other matters may be subject to restrictions. The commonhold community statement deserves attention just as a lease does, although its structure and the rights it creates are different.

An investor’s perspective

For a landlord, the questions extend to letting and to participation in decisions from a distance. What does the commonhold community statement permit? What information and notification requirements apply? How will the owner keep track of meetings, budgets and decisions if they live elsewhere?

A letting agent may be able to help administer a tenancy, but the owner should understand what responsibilities remain with them as an owner of a commonhold flat.

An investor should not assume that a commonhold flat can be let on exactly the same basis as a leasehold flat. The applicable law and the rules of the particular commonhold should be checked with a suitably qualified adviser. Equally, owner occupation should not be assumed to be a universal requirement.

Local rules will be used by the owners of the commonhold to decide what kind of occupation they would like in their building with decisions being made by 75% majority.

For lenders and brokers, confidence depends on being able to assess both the individual property and the arrangements for the building. The quality of management, insurance, maintenance planning and the collection of contributions are relevant to the security on which a mortgage depends. Lending policies may differ, so early discussion with the lender and an experienced conveyancer will be invaluable.

A choice based on evidence

The question of suitability is different for someone buying a new commonhold flat and an existing leaseholder considering conversion. The latter must weigh the potential benefits against the cost and process of acquiring the necessary interests and converting, alongside the condition of the building and the views of other parties. The eventual conversion rules may differ from the draft proposals.

Commonhold can offer welcome security and influence, but it will not suit every buyer’s expectations in the same way. The most useful service professional advisers can provide is a clear explanation of the commitments as well as the benefits. An informed buyer is better placed to decide whether a particular home and the way it is managed are right for them.

Lucy Riley is a Legal Director at Nockolds and a member of ALEP (Association of Leasehold Enfranchisement Practitioners).