The government has led the way in making common ownership an attractive alternative form of real estate ownership by setting up an expert advisory group to help prepare the housing market.
Commonhold allows a person to own an apartment in full ownership and to be a member of the society that owns and manages the shared areas and the structure of the building. However, it has struggled to gain traction – less than 20 joint developments have been built in England and Wales since its introduction in 2002. The system has been criticized for not being flexible enough to accommodate changing conditions. larger and more complex developments. Mortgage lenders are reluctant to lend money against common properties due to legal issues.
After asking the Law Commission to find reforms To reinvigorate common property as a viable alternative to leasehold ownership for new and existing homes, the government yesterday announced a Common Property Board that will inform the government of the future of this type of ownership.
The board includes several groups of tenants and industry experts, including Philip Freedman QC, a member of the Law Society’s Land Law and Assignments Committee.
Housing Secretary Robert Jenrick said: ‘We want to give homeowners across the country the autonomy they deserve. The new Commonhold Council, launched today, will pave the way, working with lease groups and industry experts, for UK homeowners to access the benefits that come with better control of your home.
“ We have been pursuing the biggest reforms in English property law for 40 years – and the widespread introduction of common ownership builds on our work to provide more security for millions of existing tenants across England, by putting end to scam fees and creating a system. ‘