Conveyancers warn of risks in commonhold transition

The Society of Licensed Conveyancers (SLC) has raised concerns about the Draft Commonhold and Leasehold Reform Bill, warning that rapid implementation of commonhold tenure could expose property owners to legal and practical risks.

Whilst the industry body acknowledged that measures including ground rent caps, abolition of forfeiture for long residential leases and reformed estate rentcharge enforcement “represent meaningful progress and will provide tangible benefits to consumers”, it questioned whether the commonhold system is ready for large-scale deployment.

System readiness questioned

The SLC stated that commonhold remains largely untested in England and Wales. Under the proposed system, ongoing management, financial decision-making and governance responsibilities would transfer directly to homeowners, many of whom lack experience in these legal and administrative areas.

According to the organisation, this structure could create new forms of dispute, delay and financial uncertainty, with increased potential for deadlock between owners and greater reliance on tribunals when conflicts arise within buildings.

Mortgage lending concerns

The conveyancing body identified mortgage lending as an unresolved issue, stating: “Without clear and consistent lender acceptance, there is a real risk that commonhold properties could become harder to sell or remortgage, undermining the very homeownership stability the reforms seek to promote.”

The Bill introduces new title structures, with Commonhold Community Statements replacing leases, automatic Land Registry changes and transitional arrangements. The SLC argues these changes increase the risk of error, delay and consumer confusion.

Call for measured implementation

The Society has called on the Government to introduce reforms at a pace that prioritises consumer protection and market stability, with clear documentation, robust transitional safeguards and engagement with conveyancing professionals.

The Draft Bill aims to make commonhold the default tenure for new flats and accelerate conversion of existing leasehold buildings, marking a significant shift in England and Wales property ownership structures. The concerns raised by conveyancers highlight potential implications for property transactions, mortgage availability and resale values during the transition period.

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