Introduction to Commonhold & £250 capped ground rent

What is commonhold?

Commonhold is a form of property ownership introduced in England and Wales under the Commonhold and Leasehold Reform Act 2002. It was designed to offer property owners an alternative to the leasehold system, which includes the finite term of leases.

Under a commonhold arrangement, individual flats or units are owned outright by their respective owners. The key difference from leasehold ownership is that there is no lease, meaning no ground rent and no risk of the lease expiring.

How does commonhold work?

The property is divided into separate units, each owned individually by the unit holder. These individual owners own a share of the "commonhold association" that manages the building as a whole. The commonhold association is a corporate body and is responsible for the maintenance, repair, and management of the building's common areas.

As a unit holder, you're not subject to a landlord or managing agent. Instead, you your unit holders are a part of the commonhold association. 

Draft Commonhold and Leasehold Reform Bill

The draft Commonhold and Leasehold Reform Bill was published on 27 January 2026, with an aim to bring forward reforms designed to modernise, reinvigorate and strengthen the commonhold and leasehold framework, implementing and taking steps toward making commonhold the default tenure. 

Changes to ground rent for existing leaseholders

The Government have also announced a change for existing leaseholders for ground rents to be capped at £250 a year, dropping to a peppercorn (nil rent) after 40 years. The vision for this change is to come into place in 2028, with new leasehold flats also being banned. 

How our Enfranchisement team can assist you

Thackray Williams can assist with any queries or concerns you may have regarding the upcoming reforms, commonhold or ground rents.  To speak to an expert in our Enfranchisement department, call us on 020 8290 0440.