Commonhold
Freehold flat ownership without a lease
Commonhold is a form of freehold ownership for flats and other units in a shared building. Each unit owner holds their unit outright, with no lease and no landlord. A commonhold association, owned by the unit holders, holds the freehold of the common parts. Commonhold exists only in England and Wales; Scotland and Northern Ireland have their own systems of flat ownership.
What This Means
You own this unit permanently. There is no lease term to run down and no ground rent. Internal repairs and decoration are yours. The commonhold association maintains the structure, roof and common parts. You pay an assessment towards that cost, and vote on the budget as a member. Altering your unit follows the commonhold community statement, the rulebook registered with the title. This is one of the few things on this report that lenders and insurers price directly: not every lender offers a commonhold mortgage, so your broker may have a shorter panel to work from.
Practical Advice
- Ask your conveyancer for the commonhold community statement and check its rules on alterations, pets and subletting.
- Get your broker to confirm which lenders on their panel will lend on a commonhold unit.
- Request the commonhold association's last two years of accounts and its current reserve fund balance.
- Have your conveyancer confirm the annual assessment for this unit and whether a special assessment is planned.
Key Points
- Fewer than 20 commonhold developments have been built in England and Wales since the tenure was created in 2002, comprising under 200 units in total.
- On a leasehold flat, this report prices a lease extension from ground rent loss, reversion loss and marriage value. A commonhold report has no such calculation.
Additional Information
Scottish flat owners already hold their titles outright, with shared maintenance duties set by the Tenements (Scotland) Act 2004. In Northern Ireland flats remain leasehold, with no commonhold equivalent. The draft Commonhold and Leasehold Reform Bill of 27 January 2026 would make commonhold the default for new flats. Ministers say the leasehold ban will not switch on this parliament.