Big changes are coming to the way we own flats in England and Wales. The Government is moving towards scrapping the leasehold system and replacing it with something called commonhold — and for the 2,704 leasehold homeowners in Lancaster, this could be a real game-changer.
But what does it all mean? And what should you do if you own a leasehold property or are thinking of selling one soon?
Let’s break it down…
What’s Changing?
Right now, when you buy a leasehold property, you don’t actually own the building – just the right to live there for a set number of years (often 99 or 125). A separate freeholder owns the building and makes decisions about things like service charges and maintenance. Leaseholders have always had limited control – and extending a lease or buying the freehold has often been costly and complex.
The Government wants to change that.
Their plan is to make commonhold the standard way to own flats. Under commonhold, the flat owners jointly own the building and manage it together. It’s a system that already works well in countries like Australia and the US.
What’s Already Happened?
In 2024, the Conservative Government made some progress. They brought in new laws to:
Stop leasehold on new houses (but not new flats)
Cap ground rents for existing leaseholders
Make it a bit easier to extend leases or buy the freehold
Encourage commonhold as an alternative – though take-up remained low
Critics said it didn’t go far enough, especially for people in flats still tied to freeholders and costly service charges.
Now, the new Labour Government is aiming to go further. They’ve promised to phase out leasehold completely and make commonhold the new normal — although this will take time, especially for buildings with lots of owners.
What is Commonhold?
Commonhold is a way of owning your flat outright – forever. There’s no lease to renew, no ground rent to pay, and no freeholder telling you what to do. Instead, you and your fellow flat owners manage the building together.
Sounds great, right? And it has some real benefits:
✅ True ownership – You own your home forever, not just for 99 years.✅ More control – You help decide how the building is managed and how money is spent.✅ No ground rent – One less bill to worry about!✅ More attractive to buyers – A fairer, clearer system may boost demand.
Are There Any Downsides?
Yes, there are still a few things to think about.
⚠️ Shared responsibility – You’ll need to work with neighbours to manage the building, which could lead to disagreements.⚠️ Ongoing costs – While you won’t pay ground rent, you’ll still need to contribute to maintenance.⚠️ Uncertainty – It’s not yet clear how existing leaseholders will convert to commonhold.⚠️ Developer resistance – Some developers argue commonhold is harder to manage, though many believe that’s more about protecting their profits.
What Does This Mean for Lancaster?
If you own a leasehold property in Lancaster, here’s what to consider:
The market is evolving. Buyers may start asking more questions about leasehold properties. Be prepared to explain the benefits of your home – like professional management and clear maintenance plans.
There’s still value in leasehold. Especially if your property is well run with reasonable service charges.
Act sooner if you’re selling. With reforms on the horizon, selling now might avoid uncertainty later on.
Here in Lancaster, leaseholds are a smaller part of the market – but still significant:
LA1 has 2,117 leasehold properties (10.3% of all homes)
LA2 has 587 leasehold properties (6.8% of all homes)
These numbers mean there are still thousands of people locally who may be affected.
Final Thoughts
The move from leasehold to commonhold is one of the biggest property reforms in decades. While it promises fairer homeownership, the process won’t be instant.
If you’re thinking of selling your leasehold flat in Lancaster, the key is to stay informed and highlight what makes your property attractive right now.
Need advice or just want to chat through your options? Feel free to drop me a message or give me a call. I’m always happy to help.
Thanks for reading
Michelle x
