Abigail Williams

Solicitor

Blog Dispute Resolution

The Commonhold and Leasehold Reform Act 2002 introduced commonhold as an alternative to leasehold property ownership in England and Wales. However, commonhold has not gained significant traction, largely due to its complexity and lack of support. The Leasehold and Freehold Reform Act 2024 aims to overhaul property ownership laws, proposing reforms to make commonhold more accessible to developers and homeowners. These changes could significantly impact businesses across property development, management, and legal sectors, driving innovation and adaptation.

What is Commonhold?

Commonhold allows individual units within a building or development to be owned outright by the occupants, while shared areas (like hallways, gardens, and elevators) are collectively owned by all unit owners through a commonhold association. This differs from leasehold, where the land is owned by a separate freeholder, giving commonhold a more democratic structure. Despite its potential, commonhold has not been widely adopted due to its complexity and lack of understanding among developers and potential homeowners.

Benefits of Commonhold

Commonhold offers several advantages over leasehold:

1. Long-Term Ownership: Unlike leaseholds, which lose value as the lease term decreases, commonhold provides permanent ownership of individual units;

2. Improved Property Management: In leasehold properties, landlords and managing agents often oversee maintenance. Commonhold allows unit owners to manage their own affairs through the Commonhold Association, ensuring more accountability; and

3. Standardised Documentation: Commonhold uses standardised agreements, reducing the inconsistencies often seen in individual lease agreements. This makes property management simpler and more transparent.

These benefits make commonhold an attractive alternative, addressing issues like depreciation of leasehold values, inconsistent management, and complex lease terms.

Limitations of Commonhold

While commonhold offers many benefits, there are some limitations:

1. Collective Decision-Making: Like share-of-freehold arrangements, commonhold requires all owners to make decisions collectively. This can lead to disagreements over property management, especially when owners have differing priorities;

2. Lack of Statutory Protections: Unlike leaseholders, commonhold owners do not have legal protections to challenge the reasonableness of service charges, leaving them vulnerable to unfair charges; and

3. Restrictions on Leasing: Commonhold also limits the ability to lease units for more than seven years, which could deter investors or owners who want long-term rental income.

Impact on Businesses

The proposed reforms could significantly affect businesses in several areas:

1. Property Development: Many developers currently focus on leasehold properties, where they retain control over the land and collect ground rents. With commonhold, developers may lose these revenue streams. However, commonhold could offer a more transparent and secure ownership model, which may appeal to buyers.

2. Mortgage Lending: Lenders may be concerned about the absence of forfeiture as a method of debt recovery in commonhold (as this allows landlords to regain control of a property if the tenant defaults on rent). Without this option, lenders may face challenges recovering debts if owners default, raising concerns about the financial stability of commonhold.

3. Property Management: Businesses in property management will need to adjust to the collective ownership model of commonhold. Instead of relying on a single landlord or agent, management responsibilities are shared among owners. This could create opportunities for property management companies to offer services tailored to the unique needs of commonhold communities.

4. Impact on the Housing Market: If commonhold becomes more widely adopted, buyers may increasingly prefer properties with clear, long-term ownership structures that do not involve ground rent payments or the risks of leasehold enfranchisement. This could lead to changes in property pricing, demand, and investment strategies.

Conclusion

The Leasehold and Freehold Reform Act 2024 represents a significant shift in property ownership law. While the transition to commonhold may present challenges, it offers businesses the chance to innovate and adapt in a market that values transparency and long-term security, and businesses in the property sector must embrace these changes to stay competitive and meet evolving consumer demands.

This article was first published in London Business Matters in March 2026.

Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.

Roseanna Child

Solicitor

Blog Dispute Resolution

Introduction

County Court proceedings can often feel daunting for individuals and businesses alike, particularly for those unfamiliar with the civil litigation process. From pre-action requirements to strict procedural rules and case management deadlines, there are many stages at which mistakes can be costly. Understanding how a claim progresses through the County Court, the different tracks it may be allocated to, and what is expected of the parties involved is therefore essential. This blog provides an overview of the key stages of a County Court claim in England and Wales and highlights the importance of obtaining appropriate legal advice throughout the process.

Pre-Issue Steps

Before making the decision to pursue a claim through county court proceedings, the claimant ought to have taken all reasonable steps to resolve the dispute with the defendant as well as having served an appropriate letter before action in accordance with any relevant Pre-Action Protocol.

Both potential claimants and defendants alike will want to carefully consider the benefit of instructing a solicitor at this pre-action stage to obtain vital advice on their legal position and the likely prospects of success of their potential claim or defence, as well as valuable representation in the preparation of a suitable letter before action and in the potential pre-action negotiations.

Legal representation at this early stage can ensure that the parties are well informed from the outset which can allow them to make decisions on appropriate settlement options thus negating the need for court proceedings at all.

Filing and Issuing the Claim with the County Court

Unfortunately, sometimes litigation cannot be avoided and the claimant may proceed to file their claim with the county court.

In certain circumstances and if the claim is for money only, the claimant may decide to issue the claim using the Money Claim Online service. In most other cases, the claimant will file their claim at the county court local to the parties.

Once received by the court, the claim will be ‘issued’ by the court and the Defendant will usually have 14 days from this date to file and serve their defence.

If the defendant has not already instructed a solicitor, they may consider doing so at that stage so that they may be guided through the process of preparing a robust defence (if they intend to defend the claim) and/or obtaining more time to respond to the claim.

The Four ‘Tracks’

If the defendant does file a defence, the court will then provisionally allocate the claim to the most appropriate ‘track’.

There are four civil court tracks in England and Wales; the Small Claims Track, Fast Track, Intermediate Track and Multi-Track.

Which track the claim will be allocated to is determined by the claim value and complexity and how the claim will then proceed through the court will depend on the track it is allocated to.

• Small Claims Track: For lower-value, less complex disputes, generally up to £10,000 (excluding personal injury/housing), with limited cost recovery for the successful party.
• Fast Track: For claims between £10,000 – £25,000 (excluding complex cases), features fixed recoverable costs schemes and stricter case management.
• Intermediate Track: For less complex claims from £25,000 – £100,000, also with fixed recoverable costs scheme and more involved case management procedures.
• Multi-Track: For very complex cases or claims over £25,000 (or £100,000 for some cases), allowing flexible case management and detailed costs assessment.

Case Management

There are different procedural rules which govern the case management of claims on the different tracks and so the steps which must be taken by the parties before a trial can take place will vary depending on the type of claim in question.

For example, in the Small Claims Track, the parties will likely be required to deliver copies of all documents on which they intend to rely to both the other parties and the court by a date set by the court in the proceedings. The parties are also likely to be required to partake in a mandatory mediation through the Small Claims Mediation Service.

The procedural case management steps in Fast Track, Intermediate Track and Multi-Track claims will often be much more involved and time consuming. In claims allocated to such tracks, the parties can expect to be required to carry out some or all of the following procedural steps before their claim reaches trial;

• Completion of directions questionnaires to assist the court in making appropriate case management decisions;
• Preparation of costs budgets (although this depends on the track the claim is allocated to);
• Attendance at a directions hearing or costs and case management conference;
• Disclosure of documents relevant to the claim by both parties;
• Exchange of written witness evidence (usually in the form of a witness statement);
• Instruction of an appropriate expert witness and the exchange of an associated evidence;
• Attendance at a pre-trial review hearing;
• Preparation of trial bundles often to include all papers relevant to the claim organised as directed by the court or Civil Procedure Rules.

The above is by no means an exhaustive nor definite list and the case management/procedural steps the parties are directed to complete, will be case dependent. However, in each case the parties will be required to complete the relevant procedural steps by deadlines set by the court and a failure to meet these deadlines can be catastrophic to a party’s case.

Whilst it is therefore useful for parties to litigation to have an understanding of generally what to expect from county court proceedings, claimants and defendants alike will likely find it particularly beneficial to engage a solicitor specialising in dispute resolution and civil litigation to represent and guide them through the proceedings and to hopefully, a successful resolution.

The Benefits of Legal Representation in a County Court Claim

Legal representation can help to alleviate the often inevitable emotional strain and distress that come with legal disputes and particularly court proceedings. There is no doubt that county court proceedings and particularly those allocated to the Fast Track, Intermediate Track and Multi-Track, are time consuming, stress-inducing and complex.

However, solicitors specialising in dispute resolution and civil litigation and trained and practiced in court procedure and case management. The practice of all solicitors is also underpinned by the 7 SRA Principles which (amongst other things) require solicitors to act in a way that upholds the constitutional principle of the rule of law, and the proper administration of justice and act in the best interest of each client.

In instructing a suitably qualified and experienced solicitor to represent them in a dispute, parties can therefore feel supported and well advised throughout the county court process in accordance with their solicitor’s duty to the court and to their client.

How we can Help

Our experienced Dispute Resolution team can provide strategic advice, manage risk and ensure that your interests are protected to produce a more favourable outcome.

Contact us for a free, no obligation initial discussion on 020 3440 8000 or email adam.haffenden@tvedwards.com

Disclaimer: The information on the TV Edwards website is for general information only and reflects the position at the date of publication.