Commonhold, AI and the Future of Leasehold Reform - Dominate discussion at ALEP annual conference

There was a tangible air of anticipation in the conference room. While the Leasehold and Freehold Reform Act (LAFRA) is yet to be fully enacted, the draft Leasehold and Commonhold Reform Bill is expected shortly, resulting in considerable imminent change. 

The future adoption of commonhold proved a particularly lively topic, dividing opinion between those who view it as inevitable and those who regard it as unproven. Speakers James Fieldsend (Tanfield Chambers) and Mari Knowles (Commonhold and Leasehold Experts Ltd) explored how the proposed “acquire and convert” process might work in practice, using ALEP’s fictional apartment scheme, Hague House, to illustrate both its potential and its complexity. 

While there was broad recognition that ALEP’s expertise could help shape a viable model, many cautioned against imposing commonhold on existing buildings. Most agreed that any move to universal adoption must be gradual, starting with new developments and supported by practitioner training and robust consumer education. 

Artificial Intelligence (AI): evolution or extinction?

Equally engaging was Mike Somekh of The Freehold Collective, whose presentation “Leasehold enfranchisement just got (artificially) intelligent – evolve or be automated” inspired some lively lunchtime conversation. 

Somekh described AI as “a colleague who never needs a coffee break”, capable of analysing documents, drafting client care letters, producing valuations and identifying precedents with increasing accuracy. He quoted a poll revealing 61% of lawyers and 38% of  valuers had already used AI tools in leasehold enfranchisement. 

While, as Mike said, AI was found to outperform humans in tasks such as document summarisation and due diligence, delegates were reminded of the risks. Fabricated case citations and data privacy issues support the continuing need for professional oversight. “The challenge and the opportunity is to evolve alongside AI rather than be replaced by it,” he said, urging practitioners to, “Invest time, upskill, collaborate and differentiate”. 

Best practice and legal updates

The conference also featured informative and thought-provoking sessions on company law for Right to Enfranchise and Right to Manage companies (Louise Park, Virtual Company Secretary), tribunal preparation (Henrietta Hammonds, Beckett & Kay), and an update on the Building Safety Act from Simon Allison KC of Landmark Chambers. Mark Loveday and Robyn Cunningham (Tanfield Chambers) discussed ongoing human rights challenges to LAFRA, while Piers Harrison (Tanfield Chambers) provided his ever-popular case update. 

Looking ahead

Conference chair and ALEP Director Mark Chick comments, “The government’s forthcoming draft Leasehold and Commonhold Reform Bill presents both an opportunity and a challenge. The increased use of commonhold is a certainty. The uncertainty is in how it is to be introduced, and this will determine its success. We see ALEP as having an important role in working with government and practitioners to ensure the transition is workable, proportionate and beneficial. 

“Similarly, AI is no longer optional; it’s here to stay. Our task is to understand it, regulate it, and use it responsibly to improve our practice. 

“We approached this year’s conference knowing that the draft Commonhold Bill was not yet available to discuss. But the pace of both political and technological change has given us more than enough to consider. The context for leasehold reform has never been more challenging, and that makes ALEP’s role all the more important. Our members’ expertise will be crucial in ensuring that reform, through commonhold and through the implementation of the remaining provisions of LAFRA, strengthens rather than destabilises the system. 

“As ALEP enters another year representing over 1,200 professionals across 260 organisations, its focus remains on being at the forefront of Leasehold and Commonhold Reform.”