Commonhold: what it is, and whether you can convert your leasehold flat to it

In England and Wales, commonhold is a legal alternative to leasehold for flats, but it is still rare and conversion is difficult. Scotland is out of scope because flats there are not held on English-style leasehold/commonhold tenure; Northern Ireland is out of scope because the commonhold legislation does not extend there.

What is commonhold, and how does it differ from leasehold?

Commonhold means owning your flat as a freehold unit indefinitely, while the shared parts are managed by a commonhold association; leasehold means owning the right to occupy for a fixed term under a lease. GOV.UK puts the core distinction plainly: “Instead of owning property as a leasehold for a fixed period of time, with commonhold you own your property as a freehold indefinitely.” The Commonhold and Leasehold Reform Act 2002 defines commonhold as land where “a commonhold association exercises functions,” so the block is run through that association rather than by a freeholder landlord under leases. The important market reality is that commonhold is legally available but barely used: the Law Commission says “fewer than 20 commonhold developments have been established since the commonhold legislation came into force.” That rarity is why most flat buyers still meet leasehold first.

Can you convert a leasehold flat to commonhold?

Yes, a leasehold flat can be converted to commonhold in England and Wales, but it currently needs unanimous consent from the freeholder, every other leaseholder in the building, and their lenders—not majority buy-in. GOV.UK states the practical rule directly: “Conversion currently requires the unanimous consent of the freeholder, all other leaseholders in the building and their lenders.” The Commonhold and Leasehold Reform Act 2002 requires consent from people with relevant interests before HM Land Registry can register land as commonhold, so conversion is not something one flat owner can do alone. In practice, that unanimity requirement is the main reason existing leaseholders rarely switch to commonhold: one absent lender, reluctant freeholder, or dissenting owner can stop the conversion. So “how to convert leasehold to commonhold” is less a form-filling exercise than a collective acquisition-and-consent project.

Are all new flats commonhold now?

No, all new flats are not commonhold now; new flats in England and Wales can still be sold as leasehold, while commonhold remains an option rather than the legal default. GOV.UK says “new homes can currently be sold as commonhold, and existing leaseholders can convert to commonhold if they all collectively agree and meet certain additional criteria,” which is permission, not compulsion. The government has said it wants commonhold to become the default for new flats, but that is still policy rather than current law: its White Paper says commonhold “should become the default tenure for new flats and replace the use of leasehold” once a new framework is in place. The Commonhold and Leasehold Reform Bill is not yet law, so any claim that new flats must already be commonhold is ahead of the legislation.

What are the disadvantages of commonhold?

The disadvantages of commonhold are its tiny market, weaker familiarity among lenders and conveyancers, different cost-control protections, and a serious arrears-enforcement problem if one owner does not pay. The government says commonhold has “failed to take off, with fewer than 20 developments being built comprising fewer than 200 commonhold units,” so buyers and sellers face a thinner market than ordinary leasehold flats. UK Finance reported in April 2026 that “a minority of UK Finance members representing 40 per cent market share have some functionality to lend on commonhold,” which makes mortgage availability a practical issue even where the legal title is valid. Commonhold assessments are also not leasehold service charges: the Landlord and Tenant Act 1985 definition applies to an amount “payable by a tenant,” while commonhold unit-holders are freeholders. There is also no forfeiture procedure in commonhold; the default-risk problem is dealt with separately below.

What is the default risk in commonhold?

A commonhold association today has no way to force a defaulting owner to pay or sell their unit to clear arrears: there is no forfeiture power, and a court-ordered sale power is only an accepted-in-principle reform proposal, not current law. The government White Paper states, “There is also no forfeiture procedure in commonhold.” It also reproduces the Law Commission proposal that “a commonhold association should be able to apply to court for the sale of a defaulting unit owner’s unit,” but that wording is a recommendation, not an operative statutory power. Until reform is enacted, the government says “commonhold associations may struggle to bridge any shortfall to carry out maintenance and repairs which could impact a lender’s security.” Practitioners describe the practical consequence bluntly: “the remaining residents may initially have little choice but to cover the shortfall themselves while legal proceedings are pursued.”

Last reviewed August 2026.

Sources

• Commonhold and Leasehold Reform Act 2002 s.1 — “In this Part a reference to a commonhold is a reference to land in relation to which a commonhold association exercises functions.” Source
• GOV.UK commonhold property guidance — “Instead of owning property as a leasehold for a fixed period of time, with commonhold you own your property as a freehold indefinitely.” Source
• Commonhold and Leasehold Reform Act 2002 s.182 — “This Act extends to England and Wales only.” Source
• Law Commission commonhold project — “However, fewer than 20 commonhold developments have been established since the commonhold legislation came into force.” Source
• Commonhold and Leasehold Reform Act 2002 s.3 — “An application under section 2 may not be made in respect of a freehold estate in land without the consent of anyone who—” Source
• GOV.UK commonhold property guidance — “Conversion currently requires the unanimous consent of the freeholder, all other leaseholders in the building and their lenders.” Source
• GOV.UK commonhold property guidance — “Although take up so far has been low, new homes can currently be sold as commonhold, and existing leaseholders can convert to commonhold if they all collectively agree and meet certain additional criteria.” Source
• Commonhold White Paper — “We believe once the new commonhold framework is in place (as detailed in the remainder of this White Paper), that it should become the default tenure for new flats and replace the use of leasehold.” Source
• Commonhold White Paper — “There is also no forfeiture procedure in commonhold.” Source
• Landlord and Tenant Act 1985 s.18 — “In the following provisions of this Act ‘service charge’ means an amount payable by a tenant of a dwelling as part of or in addition to the rent—” Source
• Commonhold White Paper — “Since then, commonhold has failed to take off, with fewer than 20 developments being built comprising fewer than 200 commonhold units.” Source
• UK Finance consultation response — “Currently, a minority of UK Finance members representing 40 per cent market share have some functionality to lend on commonhold.” Source
• Commonhold White Paper PDF — “We recommend that a commonhold association should be able to apply to court for the sale of a defaulting unit owner’s unit, in order to recover arrears of commonhold contributions from the proceeds of sale.” Source
• Commonhold White Paper PDF — “Without this, commonhold associations may struggle to bridge any shortfall to carry out maintenance and repairs which could impact a lender's security.” Source
• Scrivener Tibbatts commonhold commentary — “If one owner refuses to contribute, the remaining residents may initially have little choice but to cover the shortfall themselves while legal proceedings are pursued.” Source