Background
Part 1 of the Commonhold and Leasehold Reform Act 2002 (the Act) introduces a new form of land ownership in England and Wales. The Act, together with the Commonhold Regulations 2004 made under it, provides the legal framework for commonhold and came into effect on 27 September 2004.
Commonhold is a new way of owning interdependent freehold properties, such as flats, shops and offices. It is an alternative to long leasehold ownership.
A commonhold consists of individually owned but interdependent freehold properties (known as units) and common parts. In a block of flats, for example, each flat would typically be a unit and the remainder, including the structure and exterior of the block, the stairs, hallway and grounds, would be common parts. Each unit is owned by a unit-holder. The common parts are owned and managed by a commonhold association, which is a limited company, of which only the unit-holders may be members. The members will have direct ownership of the unit they own and an interest in the ownership and management of the common parts through membership of the commonhold association.
The commonhold is managed by the commonhold association in accordance with the rules of the commonhold community statement (CCS). The CCS includes provisions prescribed by the Commonhold Regulations 2004 and local rules specific to the circumstances of each commonhold.
A commonhold can only be created out of registered land and must itself be registered at Land Registry. Applications for registration must be made in accordance with the Act and The Commonhold (Land Registration) Rules 2004.
The Act
The Commonhold and Leasehold Reform Act is available on the HMSO website. Information regarding the legislative passage of the Act is also available.
Regulations
The Commonhold Regulations 2004 are available on the HMSO website. The supporting documents are set out below:
Consultation
The Regulations were prepared on the basis of consultation with stakeholders and experts. The consultation paper was issued by the Department in October 2002 and an analysis of the responses published in August 2003 are set out below:
Land Registration Rules
The Commonhold (Land Registration) Rules 2004 are availanble on the HMSO website. Guidance on the procedure for registration of a commonhold can be found on the Land Registry website.
Model Documents
Memorandum
of Association
[Word
version] 
(as schedule 1 of the Commonhold Regulations 2004)
[Cymraeg]
-
Articles
of Association
[Word
version]
(as schedule 2 of the Commonhold Regulations 2004)
[Cymraeg]
-
Commonhold
Community Statement
[Word
version]
(as schedule 3 of the Commonhold Regulations 2004)
[Cymraeg]
-
Forms
Forms
(as schedule 4 of the Commonhold Regulations 2004)
[Cymraeg]
and Bi-lingual
forms
[Cymraeg-English]
DCA Guidance
Non-Statutory
Guidance on the Commonhold Regulations 2004 (214kb)
[Cymraeg] (313kb)
[September 2004]
Guidance
on the drafting of a Commonhold Community Statement (445kb)
[Cymraeg] [230
kb] [atodiadau] [269
kb] [February
2005]
For general enquiries on the Act or the Regulations please e-mail us.
Further information
The Leasehold Advisory Service (LEASE) is funded by the Department for Constitutional Affairs to provide general advice on the law of commonhold land so far as it relates to residential matters.
LEASE can be contacted at:
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