Multi-owned housing

Question 1

What encompasses multi-owned housing?

Answer 1

Multi-owned housing includes low-rise and high-rise apartment blocks, housing cooperatives, co-housing developments, and community land trusts.

Question 2

What are the physical structures common in multi-owned housing?

Answer 2

Individual flats within a multi-storey building, alongside common spaces and shared facilities such as roofs, walls, staircases, lifts, and amenities like gyms and swimming pools.

Question 3

How is governance and management handled in multi-owned housing?

Answer 3

Through collective decision-making, often involving a managing agent, where owners contribute financially to the maintenance and repair of common areas and shared facilities.

Question 4

How does the shared nature of multi-owned housing affect ownership rights?

Answer 4

It necessitates a balance between individual and collective interests, impacting governance frameworks and reconfiguring traditional property interests.

Question 5

What legal structures underpin multi-owned housing?

Answer 5

The legal structures vary across jurisdictions, primarily distinguished between condominium (or strata) titles and long leases of flats.

Question 6

What key principle does Sarah Blandy note about multi-owned housing?

Answer 6

Sarah Blandy notes the essential role of sharing in governance frameworks within multi-owned housing.

(Emphasises that the developer is responsible for upkeeping common property in exchange for service charges paid by leasehold owners )

+ ‘Both the physical layout and the governance framework of multi-owned housing require some form of sharing by the homeowners (Narratives)

Question 7

How does condominium reconfigure property interests according to Harris?

Answer 7

Condominium reconfigures property interests by altering the traditional context of ownership to accommodate the shared nature of multi-owned housing.

Question 8

What is the key indicator of a tenancy rather than a licence?

Answer 8

Exclusive possession is a key indicator of a tenancy rather than a licence, implying lessee’s control over the property to the exclusion of the landlord and third parties.

Question 9

How do statutory interventions like the Landlord and Tenant Act 1985 impact multi-owned housing?

Answer 9

They introduce specific obligations for landlords, emphasising repair and maintenance, and providing significant protections to tenants in multi-owned housing arrangements.

Question 10

What is a condominium title and its equivalent terms in other countries?(SA, France, Italy?)

Answer 10

Condominium title, known as strata title in Australia, sectional title in South Africa, copropriété des immeubles in France, and condominio in Italy, features dualistic ownership—individual ownership of flats and collective ownership of common parts.

Question 11

What are the main characteristics of long lease systems in England and Wales?

Answer 11

Involves leaseholders who have long leases from the freeholder, responsible for the building’s management and upkeep, with leaseholders paying for management costs via a service charge.

Question 12

What challenges do multi-owned housing systems face?

Answer 12

Both condominium titles and long lease systems face challenges in governance, management, and enforcement of obligations among owners, highlighting the complexities of multi-owned properties management.

Question 13

How do legal frameworks impact the market value and legal challenges of multi-owned housing?

Answer 13

The legal intricacies of multi-dimensional land ownership and reliance on leasehold covenants underscore legal challenges in facilitating multi-owned housing, impacting both legal and market value.

Question 14

What statutory interventions have been made in England and Wales for multi-owned housing?

Answer 14

Statutory interventions include enfranchisement rights, the right to manage (RTM), the abolition of ground rent, and the introduction of commonhold, aimed at addressing specific issues in multi-owned housing.

Question 15

What is the significance of the Leasehold Reform (Ground Rent) Act 2022?

Answer 15

It prohibits the requirement for tenants to make payments of ground rent that exceeds a peppercorn rent, addressing abuses by freeholders.

Question 16

How does the Commonhold and Leasehold Reform Act 2002 affect leasehold covenants?

Answer 16

It introduced commonhold as a new form of shared ownership for flats, significantly altering the landscape for leasehold covenants by addressing issues like enfranchisement rights and the right to manage.

Question 17

What role does scholarly analysis play in understanding multi-owned housing?

Answer 17

Scholars critically analyse the limitations and possibilities within legal frameworks for multi-owned housing, emphasizing the need for robust systems to accommodate unique demands of modern living arrangements.

Question 18

What is the commonhold system introduced by the CLRA 2002?

Answer 18

Commonhold offers an alternative to the long leasehold system, granting unit owners freehold ownership of their units and membership in a commonhold association responsible for managing common parts.

Question 19

Why has commonhold not been widely adopted?

Answer 19

Despite its potential, commonhold has not been widely adopted due to its voluntary nature and the existing dominance of the leasehold system.
(Leasehold= more profitable financially)

Question 20

What are the challenges of the long leasehold system?

Answer 20

The long leasehold system has been criticised for diminishing asset value, limited autonomy for leaseholders, and exploitation by freeholders as a source of profit.

Question 21

How is a commonhold created?

Answer 21

A commonhold is created out of a freehold registered estate and must be registered, with at least two commonhold units defined, along with a commonhold association for managing common parts.

Question 22

What are the conditions for converting existing developments to commonhold?

Answer 22

Conversion requires the agreement of all existing leaseholders with leases of more than 21 years, the freeholder, and mortgagees, involving the extinguishment of leases and a scheme of partial compensation.

Question 23

How does the Commonhold and Leasehold Reform Act 2002 affect leasehold covenants?

Answer 23

It introduced commonhold as a new form of shared ownership for flats, significantly altering the landscape for leasehold covenants by addressing issues like enfranchisement rights and the right to manage.

Question 24

What significant shift does the Leasehold Reform (Ground Rent) Act 2022 mark?

Answer 24

It prohibits the requirement for tenants to make payments of ground rent that exceeds a peppercorn rent, addressing abuses by freeholders.

Question 25

What are the rights and obligations outlined in a Commonhold Community Statement (CCS)?

Answer 25

The CCS specifies the rights and obligations of unit owners and the commonhold association, including decision-making rules, use restrictions, alteration, disposition, and maintenance duties.

Question 26

How is the commonhold association managed?

Answer 26

It operates as a company limited by guarantee, managing the common parts through a board of directors and general meetings, where each owner has one vote.

Question 27

What challenges does the commonhold system face in practical implementation?

Answer 27

The uptake of commonhold has been limited due to restrictions on leasing, complexities in conversion, potential for majority tyranny in decision-making, and lack of coercive powers for non-payment of assessments.

Question 28

What does the process of enfranchisement allow leaseholders to do?

Answer 28

Enfranchisement allows leaseholders to extend their lease or buy the freehold, aiming to address the unsatisfactory nature of leasehold ownership.

Question 29

What are the Law Commission’s proposals for enfranchisement?

Answer 29

Proposals aim to simplify and reduce costs associated with enfranchisement, offering a uniform right to a lease extension of 990 years at a peppercorn ground rent and simplifying the process to buy out ground rent.

Question 30

What is the Right to Manage (RTM)?

Answer 30

RTM enables leaseholders to assume the landlord’s management functions through an RTM company, addressing issues like high costs and restrictive qualifying criteria.

Question 31

How does the Law Commission propose to make RTM more accessible?

Answer 31

By allowing it to be exercisable over multiple blocks, including those with significant commercial space, and removing the obligation for leaseholders to cover the landlord’s costs related to the RTM claim.

Question 32

What challenges has commonhold faced leading to limited adoption?

Answer 32

Challenges include its voluntary nature, the dominance of the leasehold system, and hurdles in creating or converting to commonhold.

Question 33

What does the Law Commission’s “Reinvigorating Commonhold” project seek to address?

Answer 33

It seeks to address the hurdles to creating or converting to commonhold, the inflexibility of the Commonhold Community Statement (CCS) rules, and management challenges.

Question 34

What are the proposed changes for creating or converting to commonhold?

Answer 34

Proposals include eliminating the need for unanimous consent from leaseholders, freeholders, and lenders for conversion, making the transition to commonhold more feasible.

Question 35

What future measures are necessary to encourage the adoption of commonhold?

Answer 35

Making commonhold compulsory for new flats, incentivizing its use, and addressing practical barriers such as lack of awareness and industry inertia.