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Law Commission's call for evidence regarding Commonhold - Law Society response

9 August 2018

The Conveyancing and Land Law Committee (CLLC) recently responded to the Law Commission’s call for evidence regarding commonhold.

Commonhold was introduced in 2004 as a new way to own property. It has a number of potential advantages over leasehold tenure yet fewer than 20 commonhold developments have been created.

In their response, CLLC stated that making the commonhold requirements ‘attractive and workable’ may not be enough, on their own, to encourage its widespread adoption. While long leasehold tenure remains available, there is no incentive for developers to try out any broadly untried new system, nor incentive for the market to accept one. It is clear that commonhold has not proved to be attractive in practice. CLLC stated that the causes for this, almost wholesale lack of adoption, have to be addressed if commonhold is to have a future as a practical basis for sales of housing developments.

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