| (Non QPR) Commonholds 20:55 - Jul 11 with 1026 views | BazzaInTheLoft |
My leaseholder is relinquishing the freehold and me and the other three flat owners in the block have agreed to take it on.
He’s happy to hand it over and we‘ve all got the cash handy.
We are looking at a commonhold structure but I’ve never heard of this before.
Has anyone done this and how did it go?
Yours, confused [Post edited 11 Jul 20:55]
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| (Non QPR) Commonholds on 22:33 - Jul 11 with 904 views | scot1963 |
I never dealt with any when I was conveyancing and didn't come across it. A flat held separately by each of you as freeholders is really a no-go as you can't enforce the covenants against each other that are required for a flat. That is what the freeholder of a property of leasehold flats is able to enforce against each leaseholder. However, over the course of time, and in some instances, the current freeholder couldn't be found or identified and that was causing problems for payments (breach of covenant) (and if it was a really old property the payment could be in groats or somesuch  ); freehold duties; leasehold extensions etc. I presume that this was something brought in to combat that problem so the short term of a lease would no longer be an issue; nor the enforcement of the covenants; nor finding the current freeholder. You would take over the common duties of the freeholder as a group. As the joint commonholders you would be able to enforce the covenants and take over the duties and joint costs for the common areas as a group with a common interest. Whenever a flat changed hands the new owner would automatically join in the commonhold without any loss in the chain of holders. I see it doesn't seem to have taken off so maybe there is a downside even though it sounds like a good idea. Other than that not much help I'm afraid. |  | | |
| (Non QPR) Commonholds on 07:04 - Jul 12 with 703 views | stevec |
Is he releasing it with only good intentions or has he had a survey done recently.
I’m sure it’s all good but you and the other flat holders should probably employ your own solicitor between you to look at the ins and outs unless 100% certain. |  | | |
| (Non QPR) Commonholds on 12:23 - Jul 12 with 560 views | highleverhoopL |
Commonhold is being pushed by the govt, but by far the most normal arrangement for leaseholders to collectively own their freehold is via a residents management company. This means that if, say, the roof needs fixing but one leaseholder won't pay for it, the others have the same remedies as an outside freeholder in terms of putting a charge on the rogue leaseholders title. I think there are unresolved questions as to how this would play out under commonhold so until that system is better established I would stick with the limited company route.
Before taking it on I would discuss with the other leaseholders the future management of the property especially in terms of any common parts. Even if the common area is small there are potential risks in terms of safety, risk assessments are needed - there is quite alot of compliance which you might want to palm off on a managing agent. So worth finding out how this is going to be managed before jumping in. Check out your lease and see what the provisions are for a sinking fund to cover major works etc.. [Post edited 12 Jul 12:30]
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| (Non QPR) Commonholds on 14:31 - Jul 12 with 457 views | MickB |
Commonhold is becoming more popular as a replacement for the traditional freeholder or headlease holder role, insofar as it takes out an opportunity for those two to scalp the poor occupants. It is nothing to be particularly worried about, but does place a premium on your ability to get on with your fellow leaseholders.
(I am a retired Chartered Surveyor) |  | | |
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