What is commonhold? A guide for flat owners

Commonhold could change the future of flat ownership in England and Wales. Instead of owning a lease that gets shorter, you own your flat outright on a freehold basis and have a collective say in how your building is run. With major reforms proposed, now is a good time for leaseholders to understand their options and prepare for greater control.

For many leaseholders, the frustrating part of owning a flat is not just paying service charges. It's paying towards the building while having limited influence over how it is managed.

Commonhold offers a different model: homeowners own their individual flats, collectively control the shared building through an association, and make decisions about its upkeep. There is no expiring lease or ground rent attached to a commonhold unit.

Commonhold already exists, but few buildings use it. The government wants that to change. Its plans would make commonhold the standard form of ownership for most new flats and make it easier for existing leasehold buildings to convert.

The important point for today's leaseholders: you don't have to wait for reform to start getting ready, or to explore the control options already available.

How does commonhold ownership work?

With commonhold, your flat is a commonhold unit. You own its freehold title, rather than a lease that runs down over time. The unit's legal boundaries are recorded in the commonhold documents.

A commonhold association, a company limited by guarantee made up of the unit owners, owns the shared parts of the building. These can include the roof, structure, stairs, lifts and entrances.

Owners participate in the association, which has directors responsible for the building's management. The board may appoint a professional managing agent to organise repairs, insurance, maintenance and contractors. Commonhold does not mean every flat owner has to become a property manager. It means the management arrangements are accountable to the owners.

Decisions are still governed by the law and the building's documents. Not every owner gets a veto, and voting allocations can differ.

What is the commonhold community statement?

The commonhold community statement (CCS) is the building's legal rulebook. It sets out the units and shared areas, maintenance responsibilities, how costs are divided, voting arrangements and rules for using the property. The association's articles govern how the company operates.

If you are buying a commonhold flat, read the CCS as carefully as you would read a lease. Check the boundaries of the unit, any parking or storage rights, your share of building expenditure and how important decisions are made.

Would commonhold get rid of service charges and ground rent?

Ground rent: yes, for a commonhold unit. Building running costs: no.

Commonhold owners do not pay ground rent for their commonhold units, and there is no lease term to extend. But they still have to pay for the building they jointly own.

Instead of leasehold service charges, the association collects contributions towards a commonhold assessment. This can fund buildings insurance, cleaning, maintenance, management and reserves for future work.

Imagine ten flats need a new roof costing £100,000. If each flat has a 10% share, each would face £10,000 before taking account of money already saved or other funding. The actual split depends on the building's legal documents.

The advantage is not that roofs or lifts become cheaper by default. It is that owners have a formal structure for influencing the decisions: what work is needed, who does it, when it happens and how it is funded. Good planning matters just as much under commonhold as under leasehold.

Commonhold, share of freehold and Right to Manage: what's the difference?

Buying a share of the freehold does not automatically turn your building into commonhold. Right to Manage does not remove your lease or ground rent either. But both can be relevant routes towards stronger resident control today.

Why is commonhold reform so important now?

The government published its Commonhold White Paper in March 2025 and a draft Commonhold and Leasehold Reform Bill in January 2026.

The plans aim to strengthen the commonhold framework, make commonhold the default tenure for most new flats by restricting new leasehold flats, and make conversion easier for existing leasehold buildings. The draft conversion proposals include a route linked to collective enfranchisement and support from at least 50% of qualifying leaseholders, rather than the current general requirement for universal consent. That lower threshold is a proposal, not a right that leaseholders can rely on today.

The government told Parliament on 1 October 2026 that it intended to introduce a substantive Bill in due course. The final rules, commencement dates and any exceptions remain subject to legislation. The House of Commons Library tracks the reforms and their status.

So commonhold looks likely to play a much bigger role in flat ownership, but existing leasehold flats will not automatically become commonhold, and no particular building can assume it will qualify to convert on a set date.

That distinction matters. The opportunity is real; the timetable and eventual route for your building are not yet settled.

What can flat owners learn from other countries?

England and Wales would not be starting from scratch. Similar forms of apartment ownership have long operated elsewhere, with owners sharing responsibility for the buildings they live in.

In Australia, strata title gives apartment owners collective oversight of budgets and building management. At the 93-apartment Presidio building in Sydney, owners pursued efficiency upgrades including lighting, lift improvements and solar panels. The City of Sydney reports energy savings of up to A$1,000 a month. That outcome also relied on grants and careful project planning, so it is an example of what organised ownership can enable, not a guaranteed saving.

In British Columbia, Canada, strata corporations with five or more lots generally have to commission periodic depreciation reports. These help owners plan for maintenance and replacement of shared assets over a 30-year horizon.

In France, the copropriété system allows owners collectively to make building decisions, with dedicated funds for future works.

These systems still face difficult decisions, disputes and unexpected repair bills. But they illustrate the same principle: owners can take greater responsibility for the costs, condition and future of their buildings.

Can existing leasehold buildings convert to commonhold?

Yes, conversion is possible under the current framework, but it is demanding. Broadly, it needs the necessary consent from the freeholder, affected long leaseholders and relevant mortgage lenders, alongside legal and registration steps. Detailed requirements depend on the titles and interests involved.

The government's proposed reforms aim to make that process more workable. Even with future changes, conversion is expected to be voluntary and could involve significant legal, financing and acquisition costs.

If your building already has a share-of-freehold structure, it may have a different starting point from one owned by an external freeholder. Neither structure automatically becomes commonhold.

The right question today is not simply “Can we convert?” but “How ready are we to make informed decisions when the rules change?”

Five steps leaseholders can take now to prepare

You don't need to commit to conversion or wait for a new law to begin. These steps are useful whether you eventually choose commonhold, Right to Manage, collective freehold purchase or better management under your current lease.

1. Understand your ownership and lease. Find out who owns the freehold, how long your lease has left, what ground rent you pay and which rights and obligations apply. If you already have share of freehold, establish how that company is structured.

2. Get a clear picture of your building's finances. Gather service-charge budgets, recent accounts, insurance information, reserve-fund details and planned major works. Greater control brings responsibility for these costs, so financial transparency is essential.

3. Understand the building's condition and future liabilities. Ask what repairs or compliance work may be needed, how they will be paid for and whether the building has a realistic maintenance plan. Commonhold cannot remove the underlying cost of a neglected roof or lift.

4. Start talking to your neighbours. Changing ownership or management is a collective decision. Find out whether other leaseholders share your concerns, want more oversight and would support exploring different options. A residents' association can help organise those conversations.

5. Compare the routes to control. Commonhold might become attractive in future, but Right to Manage and collective enfranchisement may already be worth assessing. Understand eligibility, potential benefits, costs and responsibilities before choosing a path. Don't postpone urgent repairs, disputes or deadlines while waiting for reform.

This groundwork puts you in a stronger position whatever the final legislation looks like.

What should you check if you're buying a commonhold flat?

Ask for the unit's registered title, the CCS and plans, the commonhold association's articles, recent accounts, the current commonhold assessment, reserve information and details of planned works or outstanding debts affecting the unit.

Check the unit boundaries, cost allocation and voting arrangements. Ask your conveyancer to explain anything unusual and confirm mortgage arrangements with your lender.

How UNLEASE can help you prepare for greater control

Commonhold may change the future of flat ownership. UNLEASE can help you take more control of your position today.

The first step is understanding your own building: how it is owned and managed, what you pay, what risks may be emerging and which options deserve closer attention.

Our free Leasehold Diagnosis helps you assess your property across Clarity, Fair Charges, Control, Good Management and Value. Based on your answers, it identifies potential concerns and prioritises relevant next steps.

From there, UNLEASE's tools can help you explore your lease and charges, assess routes such as Right to Manage or collective freehold purchase, and identify where specialist support may be needed. These steps can also help you get organised for future commonhold reforms, even though the final conversion rules are not yet settled.

You don't have to wait for commonhold to become the norm to start preparing for a better way of owning and managing your home.

Start your free Leasehold Diagnosis