The Conveyancing Association has urged firms to respond to the Government’s consultation on commonhold as the deadline for submissions falls today (24 April).
The consultation, led by the Ministry of Housing, Communities & Local Government, sets out proposals to make commonhold the default tenure for new flats and ban the creation of new leasehold flats, forming a central plank of the Government’s leasehold reform agenda.
The Conveyancing Association (CA) says it has already submitted its draft response following engagement with its board and members and is calling on firms across the sector to ensure their views are represented before the process closes.
The body broadly supports the direction of travel, noting the consultation focuses on when, rather than if, commonhold will be introduced, signalling a significant shift in how property ownership is structured in England and Wales.
SIMPLIFY THE SYSTEM
It says the move could simplify longstanding complexities in the system, including leasehold arrangements, estate rent charges and managed freeholds, while introducing more standardised documentation and processes for consumers.
The CA also highlights potential benefits such as removing issues linked to escalating ground rents and shortening lease terms in new-build properties, alongside reducing structural complications inherent in existing ownership models.
However, it warns that successful implementation will depend on clarity and preparation, particularly around standard documentation, system changes and alignment with Land Registry requirements.
BIG STEP
Beth Rudolf (main picture, inset), Director of Delivery at The Conveyancing Association, says: “This consultation represents a significant step towards simplifying how we structure and manage property ownership, particularly for flats and shared developments.
“The move to commonhold has the potential to remove many of the complexities that currently exist, and to provide a more consistent and understandable framework for homeowners.
“However, this is a major change for the sector and it is vital conveyancers engage with the detail of the proposals. We need clear definitions, workable processes and sufficient time to prepare, in order to ensure the new system functions effectively in practice.”
CENTRAL ROLE
And she adds: “We would strongly encourage firms to take the opportunity to review the consultation and the CA’s own response, and support or submit their views before the deadline.
“Conveyancers will play a central role in delivering these reforms and it is important the final framework reflects the realities of how transactions operate on the ground.”
The CA adds that while commonhold will not eliminate all issues associated with communal living, many existing challenges already exist under leasehold and right-to-manage structures, and reform should focus on delivering a clearer and more workable framework for all parties.
The consultation closes today and can be accessed HERE.
