ABSTRACT
Commonhold came into force on 27 September 2004 as a result of the Commonhold and Leasehold Reform Act 2002 (CLRA) and the Commonhold Regulations 2004 (SI 2004/1829) and the Commonhold Rules 2004 (SI 2004/1830). Commonhold was designed to overcome the problems associated with leasehold, particularly the wasting nature of the asset and the issues with third-party management. Commonhold is created by registration and therefore an application to the registrar is required. A commonhold can only be created out of land which is registered as a freehold. A commonhold may either be created by registration without unit-holders or with unit-holders. In both cases a plan is required to identify the commonhold site as a whole, common parts and the proposed units. A developer may wish to register without unit-holders where it is anticipated that the individual units will be sold at a later date.
