Reforming the leasehold and commonhold systems in England and Wales

View this consultation in Welsh

We are consulting on a number of Law Commission recommendations that would broaden access to enfranchisement (buying the freehold) and the ‘right to manage’ a building. The proposals would increase the ‘non-residential limit’ from 25% to 50%, allowing leaseholders in buildings with up to 50% non-residential floorspace to buy their freehold or claim a right to manage. We are also considering recommendations that allow leaseholders to require that a landlord take on leases for any non-participating units following a collective enfranchisement; the introduction of a non-residential limit for individual freehold acquisitions; and changes to voting rights in right to manage companies.

On Commonhold, we are considering how shared ownership products could work in commonhold settings; and the provision of information for buying and selling a commonhold property.

The UK and Welsh governments have considered these Law Commission recommendations and agree in principle that these proposals would fulfil our stated aims to broaden access to enfranchisement and the right to manage and reinvigorate commonhold as a future tenure. We are consulting to ensure that those affected by these proposals have an appropriate opportunity to share their views on the impact of these changes before final decisions are made.