Another possibility for tenants to own the property is to create a common property. Commonhold — what is it? The leasehold Reform Act of 2002 introduced the «Commonholds» option as an alternative to ownership. Commonhold means that each owner of each apartment or unit in an apartment building owning the condominium of this apartment All common areas of the building are managed by the Commonhold Association and owned by the Commonhold Association The Commonhold Association is a business that is the collective property of all free owners. May pose problems among shared freeholds members A system similar to Commonhold, Shared Freeholds includes all tenants who collectively own the property. Each owner of a rental property within the building or complex has a property management share and the management of the building as a whole is shared by all tenants. New apartment rental buildings have made headlines lately. The government is committed to combating unfair practices in rental housing, with conditions that are inappropriate for buyers. For example, some developers offer rentals with basic rents that double every ten years, or have sold the property reserve to investment companies without the tenant being aware of the possible consequences. The government plans to prohibit the sale of rental housing, except in «exceptional circumstances.» Basic rent doubling clauses will also be illegal under the proposed legislation.
For the government`s latest plan to make rental property more equitable, visit the Law Commission website here. The Commission is currently analysing the responses to the consultation phase of the project and intends to publish its final recommendations by February 2020. Buying a property or rental property? Your local foxton agents will help you navigate all options.