The government has announced significant reforms aimed at abolishing the traditional leasehold system for flats, transitioning instead to a commonhold model. This move seeks to address longstanding criticisms of the leasehold system, which has often been viewed as outdated and unfair to homeowners. In this article, senior associate Joe Genco examines the government’s proposed reforms. Understanding freehold, leasehold and commonhold Property ownership in England is primarily divided into freehold and leasehold tenures. Freehold ownership is perpetual, while leasehold ownership (the default for flats) is time-limited. Under the leasehold system, homeowners purchase the right to occupy a property for a specified period (typically 99, 125 or 999 years), but the freeholder owns the land and building. This arrangement can lead to issues such as escalating ground rents, high service charges and limited control over property management. In contrast, commonhold offers a form of...
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