Commonhold Association Service
Take control of your property – discover how to convert your building from leasehold to commonhold with expert guidance from The Freehold Collective.
Our Commonhold Services
The current Leasehold and Freehold property ownership system is being abolished, in favour of Commonhold.
At The Freehold Collective, we help leaseholders come together and exercise their right to purchase the property that they lease and share in the ownership and the management of their building and common grounds.
We advise home owners on their best options from Collective Enfranchisement and RTM to exercising their right to Commonhold, following the introduction of the Commonhold and Leasehold Reform Act 2002.
Our Commonhold Association Service is designed for leaseholders who want to take full control of their property, empowering them to manage both their individual flats and shared spaces through a unified ownership model.
Our Commonhold Association Preparation Process
What is Commonhold?
Commonhold is an alternative type of property ownership to the traditional Leasehold system where individuals own the freehold of their flat within a building and a Commonhold Association, made up entirely of flat owners, owns, manages and maintains the common areas. Commonhold differs from the Leasehold system in offering perpetual ownership of one’s flat (as opposed to expiring leases), does away with annual, increasing ground rents, replaces all leases with a standard Commonhold Community Statement (a contract) and entirely removes a third party owner (freeholder) from the equation.
The Pros & Cons of Commonhold
The introduction of Commonhold produces some benefits and some potential challenges for flat owners. Key benefits of commonhold include:
- Perpetual Ownership of your home and investment (no expiring lease)
- No need to pay increasing ground rents for no benefits
- Standard rules that apply to all, equally
- No requirement to go through a landlord for management decisions
- No requirement to go through a landlord for permission to refurbish or sell your home
- Collective and democratic control over the service charge budget and how communal areas of the building are managed
- Ability to opt for self-management if appropriate to save money
- Ability to appoint your own professional managing agent for added protection
Potential challenges of Commonhold:
- Commonhold is currently in law from 2002 but has had almost no take-up (at most 20 properties in the UK)
- Reinvigorated Commonhold will be the default tenure for all new build properties but the details to ensure it works, are still to be ironed out by the Government
- For leasehold flat owners in existing buildings, there is as yet no defined path to Commonhold other than via 100% participation in a freehold acquisition. This requires 100% agreement from all owners. In blocks comprising many residents, securing 100% consensus to replace the leases with a Commonhold Community Statement is potentially difficult at present.
- For existing leaseholders who follow the path to Commonhold via 100% participation in the Freehold purchase, the move to Commonhold may not be as attractive if the leases have the same obligations and rights.
Commonhold vs Share of Freehold
Commonhold
- Provides outright, perpetual freehold ownership of individual units with collective management of shared areas through a commonhold association, eliminating leases and ground rents.
- Replaces leases with permanent ownership of the commonhold unit
- Managed by a commonhold association (a company limited by guarantee)
- All unit holders own their flats outright (not the lease) and vote equally
- Shared responsibilities are set out under commonhold regulations
- Ongoing costs covered via a transparent commonhold assessment
Share of Freehold
- Share of freehold involves leaseholders jointly owning the freehold of the building while still holding individual flats on leases, giving more control but retaining leasehold limitations.
- Leaseholders collectively own the freehold land through a company limited
- Still bound by existing leasehold structures and individual leases
- No legal framework like the commonhold regulations to ensure consistency
TFC helps clients weigh up these options and move beyond outdated leasehold ownership models toward long-term, cooperative control.
Feature
Commonhold
Share of Freehold
Ownership
Freehold of unit + share of common
Leasehold + share in freehold company
Control
Direct, via Commonhold Association
Joint with other freeholders
Ground Rent
None
Usually None
Lease Expiry
No expiry
Yes, but easier to extend
Management
By owners collectively
By owners collectively
At The Freehold Collective, we help homeowners find the best option for each specific situation, including achieving their aim of the stability of a Commonhold.
We guide you through every stage, from initial legal advice to complete project management, so you can make a confident, informed choice about your home and your future.
Converting to Commonhold From Leasehold Property or Share of Freehold Property
The Freehold Collective’s Commonhold Association Forming service is ideal for leaseholders ready to replace outdated structures with true ownership of their homes. Whether you own a leasehold property or hold a share of freehold, we guide you through the legal and practical steps to create a commonhold community.
The process involves:
- Transferring the freehold estate into a commonhold association
- Registering a company limited by guarantee at Companies House
- Replacing all leases with directly owned commonhold units
- Engaging all unit holders, mortgage lenders, and stakeholders for consent
- Establishing transparent governance under commonhold regulations
- Replacing service charges with a fair commonhold assessment
We coordinate the conversion end-to-end, from legal restructuring to regulatory compliance, so property owners can govern the building themselves, not just hold a lease within it.
Why Choose The Freehold Collective?
We at The Freehold Collective, are all leaseholders who have come together to help thousands of others like us exercise their rights in the best possible way. A multi award-winning organisation, we advise the Government and enfranchisement agencies and groups on Leasehold and Commonhold law reform. Using our vast, practical experience, we focus on providing comprehensive consultation and project management for all leaseholders, and are your safe pair of hands.
Commonhold Association Services FAQs
What is the difference between a commonhold property and a leasehold?
A commonhold property gives you ownership of your flat and a say in the building’s management. Leasehold means you own a lease, not the land, and remain tied to a landlord and fixed terms.
What is an example of a commonhold?
A block of flats where owners each hold their own unit and manage shared areas together through a commonhold association’s board.
Who owns the land in a commonhold?
The commonhold association owns the freehold land on behalf of all unit owners. You own your home, but not the land individually.
What is the commonhold law in the UK?
The commonhold association owns the freehold land on behalf of all unit owners. You own your home, but not the land individually.
What is the commonhold law in the UK?
Commonhold is a legal form of ownership under the 2002 Act. It replaces leases with shared governance via a commonhold association’s board, following set commonhold regulations.
Free Consultation
We’d love to hear from you. Send us a brief message on any leasehold or freehold matter, and we’ll be in touch to book your free initial consultation.
Our free, no obligation, consultation will include:
- A brief review of the Land Registry information relating to a flat or building
- A discussion around the specific problems faced by a leaseholders
- Feedback based on our review Land Registry records and other information relating to your specific flat or building
- Advice on your options, pros and cons of the the best way to solve your problems and realise additional long term benefits of your property