Why replacing leasehold may be easier said than done
Summary
The UK government plans to end leasehold ownership for new flats and replace it with commonhold, where residents collectively own and manage their buildings. Leaseholders often face rising fees and little control over their homes, but commonhold has been rare since its introduction in 2004 and its wider adoption may bring new challenges.Key Facts
- About five million people in England and Wales own leasehold properties.
- Leaseholders face rising costs for service charges and ground rents, causing stress.
- The government’s Commonhold and Leasehold Reform Bill aims to stop new leasehold flats and promote commonhold ownership.
- Commonhold means residents share ownership and control of their building, managing shared spaces and costs together.
- The leasehold system comes from medieval land practices where land is rented for a fixed period.
- Commonhold was introduced in 2004 but has been rarely used, with only 18 developments registered in England.
- Experts believe commonhold could give flat owners more control but are unsure if it will avoid new problems.
- Housing Minister Matthew Pennycook supports commonhold, saying residents should control their buildings, not outside landlords.
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