Commonhold must work from day one

Held on 14 October, the conference covered housing market conditions, mortgage lending, building management and enfranchisement valuations along with practical examples of collective enfranchisement and a case law update. Contributors included Marcus Dixon of JLL, Caley Zappacosta of HM Land Registry, Robert Stevens of Nationwide, Mari Knowles of Commonhold and Leasehold Experts and Jaclyn Mangaroo of The Property Institute. Henrietta Hammonds and Peter Beckett explored the experience of collective enfranchisement, Vanessa Griffiths and Adrian Hau examined valuation reform and Piers Harrison provided a case law update. A closing discussion brought together practitioners, The Property Institute and Telegraph journalist Madeleine Ross. 

Commonhold is now central to the government’s programme for changing residential property ownership. The draft Commonhold and Leasehold Reform Bill proposes a reformed framework, easier conversion for existing buildings and a ban on leasehold for most new flats. Alongside this, further legislation and regulations are needed to implement significant elements of the Leasehold and Freehold Reform Act 2024. The conference considered how these overlapping reforms can translate into a workable system. 

ALEP Director Mark Chick said: “Commonhold is intended to give homeowners greater control over their buildings. Delivering that opportunity requires coordinated preparation across the property sector, from registering ownership and securing a mortgage to day to day financial and practical management.

“The conference brought these perspectives together. It highlighted that residents need to understand the responsibilities they will acquire, lenders need confidence in the security they are financing and practitioners need clear rules and processes through which to advise their clients.”

Discussion centred on three connected priorities: making conversion financially and legally accessible, ensuring buildings have sustainable finances and competent management, and preparing the systems and professional guidance needed for implementation. 

For existing buildings, outstanding questions include the total cost of conversion, arrangements for owners who cannot afford to participate and the treatment of existing mortgages and development rights. For both converted and newly created commonholds, effective governance, adequate reserves and proportionate arrangements for recovering unpaid contributions will be essential. 

Speakers also examined the distinction between ownership reform and building expenditure. Greater resident control can improve accountability and decision-making, but buildings will continue to require maintenance, insurance and compliance with safety obligations. 

Mark Chick added: “Successful reform must be judged by how it works in individual buildings. Can owners make informed decisions? Can necessary work be funded? Can a buyer obtain a mortgage and understand the building’s financial position? 

“ALEP’s members bring experience of the transactions, valuations and disputes that will shape those outcomes. We will continue contributing that practical knowledge as the legislation develops, while helping leaseholders navigate the law that applies today.”