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Advantages and disadvantages

This content applies to England & Wales

The advantages and disadvantages of commonhold.

Advantages

  • Commonhold avoids the problem of the lease expiring (see the page on Remaining after the end of the lease in the section on introduction to leasehold).
  • As there is no overall landlord, all decisions about the building will be made by the individual property owners. Commonhold also avoids the problem of landlords who demand high service charges and/or fail to repair or maintain the building.
  • All owners of property in a commonhold building will have equal rights.

Disadvantages

  • It will be up to the members of the Commonhold Association to enforce the rules contained in the Commonhold Agreement/Community Statement. This could lead to tensions between members.
  • It can be expensive and complicated to convert a property to commonhold (see the page on Converting to commonhold for details).
  • As it is a new type of ownership, there may be unforeseen problems with commonhold. Some issues may need to be tested in the courts.

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