What to Know About Commonhold Ownership 2025

With growing calls for leasehold reform, commonhold ownership is becoming a hot topic in the UK property market. But what exactly is it, and how could it benefit buyers and investors? In this blog, we explain the essentials of commonhold and why it might shape the future of new build developments.

Key Takeaways

• Commonhold allows permanent ownership of your apartment and shared spaces.
• No ground rent or lease extensions are needed.
• Owners collectively manage the building through a Commonhold Association.
• Commonhold is seen as a fairer alternative to leasehold ownership.
• Government reforms could make it the standard for new apartments in future.

What Is Commonhold Ownership?

Commonhold ownership combines freehold ownership of your individual apartment with shared ownership of communal areas. Introduced in 2002, it offers an alternative to traditional leasehold structures. Instead of a landlord, a Commonhold Association, formed by all property owners, manages the building collectively.

How Does Commonhold Compare to Leasehold and Freehold?

Leasehold

You own the right to occupy the property for a fixed period (often 99–999 years), but the land and building are owned by the freeholder. You often pay ground rent, service charges, and need permission for alterations. When the lease term runs down, you may need to pay to extend it.

Freehold

You own the property and the land it stands on outright, with no time limit. You are solely responsible for the maintenance and insurance of the property. Freehold is typical for houses but rare for apartments, because managing communal areas becomes complicated.

Commonhold

You own your individual apartment or flat outright forever, just like a freehold house. However, the land and shared spaces (like corridors, roofs, gardens) are owned collectively by all apartment owners through a Commonhold Association. This structure allows apartments to function similarly to freehold houses, with shared responsibility for communal areas.

Why is Commonhold in the News?

In April 2025, the UK Government reaffirmed plans to promote commonhold ownership for all new build apartments in England and Wales. This push follows widespread criticism of unfair leasehold practices, such as escalating ground rents and expensive service charges. As a result, developers and buyers alike are paying closer attention to commonhold structures.

Benefits and Challenges of Commonhold Ownership

Benefits

• Permanent ownership without costly lease extensions.
• Full control over service charges and building management.
• No ground rent or hidden costs.
• Fairer, more democratic management.

Challenges

• Fewer mortgage lenders currently offer commonhold mortgages.
• Buyers and developers are more familiar with leasehold systems.
• The success of commonhold relies on effective co-operation between owners.

As commonhold becomes more widespread, these challenges are expected to ease, making it an even more attractive option for homebuyers and investors.

How Rothmore Property Can Help You

At Rothmore Property, we specialise in helping buyers and investors navigate the evolving UK property market. Our expert team can guide you through the best developments across Manchester, London, Birmingham, Liverpool, and beyond. With over 60 new build developments available and a range of first-time buyer and investment opportunities, we make finding your ideal property simple and stress-free.

As an award-winning agency, we stay ahead of market trends so you can invest with confidence.

The Future of Apartment Ownership: Is Commonhold the Answer?

Commonhold offers a refreshing, fairer way to own a home. While it is not yet the standard, upcoming government reforms and growing buyer demand could see it become much more common. If you are considering a new build purchase, understanding your ownership rights is crucial.

Get in touch with Rothmore Property today to explore your options and find the right home or investment for your future.